With the bearish bias now firmly established in the $uros to poundsr following last Friday’s bearish engulfing signal this morning price action has continued in this vein as we now await for the ECB interest rate decision which is due out shortly followed by the Bank’s press release 45 minutes later.  The consensus view is that interest rates will be cut once again to an historic low of 1% and it will be interesting to see if this has already been factored into the markets.  The good news in the economic calendar for the British Pound was earlier today when house prices and construction data both came in better than expected at 0.9% and 30.9 respectively against a forecast of -1.5% and 27.6 respectively.

In addition to the interest rate decision, ECB President Trichet is also speaking this afternoon and coupled with any annoucements following the conclusion of the G20 summit in London, we may see some volatility across all markets.  My suggestion for today is that unless you have a long term bearish position already in place is to wait until these events have unfolded.

In the meantime you can keep up to date with all the latest $undamental newstest currency news and live currency charts by simply clicking the appropriate links.  You can also find details on a good ECN brokers.

Coda:  The ECB has only cut rates by 35 basis points which is against market expectation.  Limited reaction in euros to pounds as market now waits for press conference.