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Forex: GBP/USD struggles to reach 1.5150

After dipping to the area around 1.5070 after agency Moody’s stripped the UK from its AAA status on Friday, the sterling has managed to gather traction overnight and trade back above the key resistance at 1.5100 on Monday.

Events over the past weekend left Chancellor Osbourne affirming that the UK will now intensify its efforts to go back to the recovery path, hinting that further weakness in GBP would be in the pipeline.

At the moment, the cross is up 0.38% at 1.5136 facing the next resistance at 1.5075 (overnight low) followed by 1.5000 (psychological level).
On the upside, a breakout of 1.5235 (2012 lows) would expose 1.5550 (high Feb.15).

Asian markets up ahead of Fed's Bernanke on Tuesday, Italy on election

China had disappointing HSBC flash PMI (50.4 in Feb, down from 52.3) and it's been reported (no confirmation yet) that PM Abe will nominate dove ADB President Kuroda to lead the BoJ. Investors may also be getting ahead of Tuesday’s Bernanke semi-annual testimony (likely to be dovish), and the $85b sequestration cuts scheduled to kick in on Friday, barring a last-minute deal in the US.
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Forex: USD/JPY holding BoJ based gains above 94.00

The USD/JPY surged from 93.36 to 94.50 right as the FX market opened for the week. Since then, the chart has been watching a sideways pair being traded throughout the Asian session, and now European morning. For now, the cross has been able to limit retracements above 94.00.
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