I’m sitting here in the internet shop in Piazza Kennedy having spent most of the day at the local marina admiring the wonderful boats and enjoying the sunshine. Why? well other than because i’m on holiday i couldnt take any more of the rubbish spoken by the so called experts on Bloomberg! Surprise, surpise, both the BOE and ECB have left rates on hold. The subprime debacle has given them both a lifeline and avoided the necessity of them having to continue to act “tough” by continuing to raise interest rates. Both the euro and pound raced up yesterday and promptly fell again after the announcements. Now we await the nfp figures. The only certainity with the nfp is that whichever direction the euro and pound take initially will promptly be reversed. The reason is simple – stop removal. Looking at the longer charts, ie monthly both the euro and pound are showing significant doji candles which always represent a turning point or indecision so anything can happen. As always we have to wait for confirmation.