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Forex Flash: Farewell to Mervyn - Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that today´s BoE Inflation Report press conference saw 2013 GDP forecasts revised up (1.2% from 0.9%) and inflation down (2% in 2 yrs rather than 2.3%).

He notes that this all came after a jobs report that saw unemployment fall another 7.300, and average weekly earnings growth slow to a puny 0.4%. He adds that this all came against a backdrop where his inbox is full of questions about what pressure for a vote on EU membership means for gilts and the pound. He writes, “I can’t see any good news for (10yr) gilts, which continue to out-perform Treasuries, under-perform Bunds. Short-term traders might short Gilts relative to Treasuries here as the sell-off in the latter takes a pause. As for the pound, a muddied story – the EU debate is ‘bad’ but the prospect of no- more QE and an MPC which has given up supporting GBP weakness (even covertly) exposes the fundamental cheapness of sterling.”

Forex Flash: 93.60 level looks to fortify recent drop in crude oil – RBS

Crude Oil prices reached the 93.6 support, formed by a Fibonacci retracement from the August- September 2012 impulse wave. However, “A negative crossover in the overbought 10/3/3 slow stochastic and a turn in 12/26/9 MACD oscillator suggest correction is looming to the 90.5 support region. Also it is worth noting that the price might be forming a head and shoulders pattern, with a target of 90/90.5.” suggests Dmytro Bondar, a Technical Markets Strategist at RBS.
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Forex Flash:Sterling outperforming as the UK employment numbers improve - BBH

Brown Brothers Harriman analysts note that GBP has outperformed this afternoon as UK employment numbers reported a somewhat better than expected employment report.
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