Sterling Strugling as Euro Poised For New Highs

G7 - Gee Whiz - Now What?

Last Weekends G7 Meeting left observers with nice words of cooperation - but as the respective leaders headed their separate ways to the four corners of the globe - the currencies seem to be on their own paths now as well.

The G7 is calling for China to increase the flexibility of it's currency - But it seems to me that all that will do is cause the price of their exports to go up - causing more inflation for consumers worldwide!  Click Here for a Link to the G-7 Statement

 

Euro Poised for 1.60 Range?

On Wednesday the Euro zone reported higher than expected inflation - dragging down hopes that Trichet might lower interest rates to help prop up the US Dollar.  

 

Inverse Head and Shoulders on 30 Min Chart

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Ascending Triangle on Daily Chart

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Tracking Errors?

Although the UK came out with better than expected CPI numbers the Pound Sterling seems to almost track the US Dollar down more than it's traditional tracking of the Euro - currently on it's way up.

 

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN),He is available as a Mentor and Trading Coach to Select Clients Click Here for a Free Survey and 15 Minute Consultation. Tune into his broadcasts weekly on FX Street with "1stonForex the Week Ahead".