The greenback has lost ground versus the British pound which has been bounced back up after the release of the CBI retail sales figure of September which came up in an unexpected way at 3 while the market was waiting for just -14 from -16 in August. The cable has formed a higher low at 1.5825 and it is now testing 1.60. The cable has made previously in the beginning of this week a new low below 1.58 at 1.577 after a dovish closing last week below 1.60.

The greenback could keep its gains at the closing of last week amid a profit taken wave in the equities markets. The greenback has driven the gold down breaking 1000$ psychological level triggering stop loses orders under it and the gold could close hardly at 988$. The pressure on the gold has started last week after the Fed's decision to keep the interest rate unchanged extending its MBS program to the 1Q of 2010 from 4Q 2009 as it has been downplaying the inflation upside risks in the near term. The Fed's assessment have shown inherited to the inventors its current existing worries about the unemployment and the solidity of the recovery which weighed negatively on the US stocks by the end of the week pushing the commodities and the energy prices down and the gold prices as well as a mirror of the inflation. The US stocks could not get use of the US UN.

The British pound has found support today from the release of the MPC recent meeting minutes which have shown that the decision of holding the buying bonds plan unchanged at 175 Bln Stg was unanimously an unanimous. The sterling was under pressure in the beginning of this week before finding support above 1.61 versus the greenback negatively impacted by the recent comments of the BOE president Marvin king in front of the parliamentary committee last week when he said that further deposit interest rate cut might be a useful supplement and the market was waiting to have a hint in these minutes release to a probability of cutting the interest rate further in UK but the minutes have surprised the market with no reference to this probability and holding the BOE plan unchanged with no adding by an unanimous decision.

The sterling is still under the pressure of BOE president Marvin king in front of the parliamentary committee who said yesterday that further deposit interest rate cut might be a useful supplement. The market has sold the British pound off after this dovish comment which lowered the current market discounting of the interest rate outlook in UK. King was one among 3 opposing voting members of the MPC meeting in July of adding just 50bln Stg to the buying bonds plan suggesting adding 75bln Stg referring to the possibility of public confidence damage in the recovery which can flatter it suggesting that the inflation could be under the BOE target for a sustained period.