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Sterling has a steady day

With the US reversing some of it losses, GBP uptrend seems to have run in to some strong resistance at the 1.8600 levels and last night mortgage approvals helped to reinforce the negative outlook on the UK economy.  Overall the GBP traded with a low of 1.8472 and a High of 1.8540 Before closing the day at 1.8540 in the New York session.

The Euro gave up some of its gains yesterday as traders took profits before Bernanke and Paulson testified before congress.  The Euro zone manufacturing purchasing managers index fell sharply from 47.6 in August to 45.3 in September, the weakest reading since December 2001 and well below forecasts.  Overall the EUR/USD traded with a low of 1.4623 and a high of 1.4826 before closing the day at 1.4650.  September’s German IFO and the Euro Zone current account is due out today.

The USD was able to gains of its losses back that it incurred earlier in the week but ongoing talk sentiment was mixed, as the FED’s ambitious 700billion bailout plan seems be stalling with the U.S congress.  Another pullback in Oil assisted the big dollar as it drifted back towards $100 from yesterday’s highs of $130.   U.S Stocks were weak again with the largest decline in 2days in 6 years.

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