Currencies

LONDON (ShareCast) - Gordon Brown's comments that it would be "suicidal" to suddenly cut off the fiscal stimulus have served to undermine sterling further today, though it is off its Asia lows. Traders seem to accept as inevitable that the BoE will extend QE further at its November (Frankfurt: A0Z24E - news) meeting.

Against a basket of currencies the sterling index has traded off its lowest levels since the 15th October at 78.36.

Meanwhile the US dollar has traded sideways after Friday's 35 point rise in the US dollar index.

GBPUSD - briefly slipped to 1.6270 in early London trading but has since recovered back above 1.6300and traded as high as 1.6350. There is potential for squeeze back to the 1.6440/50 area but with QE back on the agenda the extent of any rallies could be limited.

EURGBP - has drifted down from its highs at 0.9240 and is drifting towards the support level at 0.9185/90. Support also comes in around 0.9150. Key (NYSE: KEY - news) resistance remains at 0.9270.

EURUSD - it's "as you were" on EURUSD as it trades in its broad range between 1.4980 and 1.5060. The market needs a new impetus factor to generate some life. Above 1.5060 targets 1.5160 while below 1.4980, targets 1.4930.