Pound sterling rallies

also been driving the pound to the upside with the British government involved in huge deals worth £20 billion.
A big Chinese consortium is yet to agree a certain stake for the Royal Bank of Scotland.
Better valuations for British firms on the FTSE 100 have pushed investors into pound- denominated assets as capital inflows continue to improve.
The sterling pound has rallied by 5 percent as it reached key trend lines to touch US$1,6033 breaching that US$1,5999 against the dollar as volume for the GBP-USD currency pair continues to increase on the trading charts.
As EU leaders agreed on a firewall to mitigate any financial problems, demand for sterling pound increased as it inched higher against the euro. The pound rose against the single currency to touch 83,14 pence per euro from 83,37 pence per euro. The EU leaders deal has pushed investors to keep a close eye on the GBP-EUR currency pair as volatility has been prompted by such headlines.
For a while the pound has been failing to get reprieve for the Bank of England’s balance sheet expansion as this was pushing investors to short the sterling pound against most of its liquid pairs.
According to technical analysis the euro will likely fall further against the sterling pound as the debt crisis persists. The sterling pound will likely breakout to 1,61 to the dollar, supported by a weakness of the dollar as the Federal Reserve highlights the likelihood of additional stimulus.
In Europe, the euro was affected by the high unemployment fugures showing signs that the region is going through some rough patches.
Despite the EU leaders agreeing on a firewall to aid the financial system, the euro is still under immense pressure as policy reviews keep hurting growth within the eurozone.
The euro was trading at US$1,3328 to the dollar and lost momentum against the sterling pound as it touched 83,14 pence per euro.
The euro gave up gains against the yen as it touched 109,36 from 110,47. The yen trimmed its losses to recover against the dollar to trade at 82,05 from 82,82. The yen was buoyed by a better US manufacturing data, as the yen is mainly supported by a good trade account boosting demand for Japanese products. The Canadian dollar recovered from its lows against the dollar as it inched higher to touch US$0,9904 and is currently heading for parity against the dollar.
A better US data spilling through the market has really put risk aversion on the pause.
The Canadian dollar is well supported by a US recovery as a jobs and manufacturing data is really driving the Canadian dollar to parity.
Currently, the market is buying the Canadian dollar at US$0,9850 looking to take profit at 1 000 stop loss orders at US$0,9780. In the South Pacific the Australian dollar has reversed earlier losses against the US dollar on a better US data benefiting exporting countries.
The Aussie dollar has had a brutal March as it fell from highs of US$1,07 to trade at US$1,0357, but has since recovered to trade at US$1,0418. Since risk-on trade is back buoyed by a US recovery the resource driven nation has seen demand for its exports increase boosting demand for high-yielding assets. The other factor has been that of interest rates differentials as investors seek for higher yields in these assets.
African markets
The rand trimmed down its losses against the dollar as it touched 7,6325 and gained against the euro to touch 10,185. The rand has been struggling on negative Chinese sentiment as this had dimmed demand for their exports causing the rand to be volatile.
Emerging market stocks have gained on US recovery and that includes South African stocks. Implats has seen a fall in stock price as the recent debacle on Zimplats the company they have a controlling stake in Zimbabwe is hurting the stock price.
Commodity markets
US manufacturing data has pushed commodities to the upside as it beat estimates. This sent crude oil to touch US$105,23 per barrel.
Crude oil had fallen on global growth concerns driving down gains but recovered as demand increased.
The price for crude oil fell by 9 percent during the month of March. Another factor for oil price risk rally is being driven by political tensions. A gold correction gave up gains in earlier trade as it touched US$1 677,80 an ounce but recovered as US manufacturing data pushed the metal to US$1 681,99 an ounce.
The commodity is currently facing resistance at US$1 681,99 an ounce and could breakout to US$1 682 an ounce given the headlines coming out of the US. My chart of the day, beware of a crowded trade that could hurt your portfolio in especially on the currency markets. Good day.