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Sterling advances remain capped below 1.5150

FXstreet.com (Barcelona) - The sterling finished the week slightly lower, although it did bounce from previous lows set down near 1.5010 to end the week down 41 pips at 1.5126. The main catalyst for the decline was continued weakness in UK economic data, particularly the retail sales print which came well below expectations at -1.3% actual vs. 0.0% expected.


According to analysts at Rabobank, “with the overall economy continuing on a lacklustre path the market will be on edge for further stimulus from the BoE once governor-designate, Mark Carney, takes the reins in early July. Better signs in the housing market complicates the calculus, though, because it is one of the main interest rate sensitive sectors. We expect further QE via an increase to the BoE’s Asset Purchase Program in August.”


According to Val Bednarik of FXStreet.com, “Despite its latest recovery, the GBP/USD is still struggling to overcome the 1.5130 area, 61.8% retracement of its latest daily bullish run. The hourly chart shows price above 20 SMA and indicators heading higher in positive territory, yet with no actual strength at the time being. In the 4 hours chart price has managed to overcome a still bearish 20 SMA while indicators head higher above their midlines, supporting an upward continuation. Still with low volumes around and with no follow trough above the resistance level, there are no technical confirmations of such advance.”

A quiet start to the week as EUR/USD continues to consolidate just below 1.3000

The EUR/USD finished the previous week moderately higher, holding critical support located around 1.2800 and closing up 112 pips at 1.2932. It was a roller coaster of a week as Chairman Bernanke was set to testify in front of congress which heighted volatility. However, the real catalyst for moving the pair higher seemed to show up on Thursday as important economic data from Europe came in better than expected. It will be quiet start as we progress throughout the day with both the UK and US being closed for holiday.
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USD/JPY finds support above 101 round

USD/JPY is last at 101.06, holding above 101.00 round bids, off session lows at 100.78. The pair is down -0.21% for the day from previous weekly close Friday, finding support so far at the 101 round level.
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