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Forex: GBP/USD below 1.5050 ahead of UK Construction PMI

Third consecutive flat Asian session for GBP/USD, barely moved in last 7 hours, inside a tiny 24 pip range 1.5021/45, mostly unchanged from previous weekly closed Friday, down already -7.5% year to date. Cable suffered a massive hit past Friday following worst UK Manufacturing PMI in 4 months, down to 47.9, selling off hard from 1.5180 level, now waiting for 1.5050 and 1.4900 options to expire at today’s 10:00 am New York cut, FXBriefs.com reported.

For the London session ahead, key risk event for Pound will come in the form of UK Construction PMI data at 09:30 GMT, expected to show slightly better figures than previous one. Valeria Bednarik, Chief Analyst at Fxstreet.com, notes “the hourly chart showing 20 SMA gaining bearish slope above current price and indicators aiming higher in oversold levels; price however is unable to recover ground, as the market believes the BOE will be announcing a QE extension in their meeting this week,” she suggests, adding: “The 4 hours chart shows a strong bearish momentum which supports a downside continuation rally towards 1.4920 price zone, as long as 1.5070 now attracts sellers,” the analyst concludes.

Support levels are located by Valeria at: 1.5010, 1.4960 and 1.4920, while resistance levels at: 1.5070 ,1.5115 and 1.5160.

Forex: EUR/USD wrestling around 1.30

The Euro is trading timidly above the all important 1.30 contention area against the US Dollar, an occurrence that will likely keep volume activity in the pair at fairly high levels as the wrestling to determine the next direction continuess. As a reminder, the pair traded as cheap as 1.2966 last Friday, on notable USD-strength across the board.
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Session Recap: Aussie at fresh 7 month low; BoJ Kuroda makes public appearance

The Australian Dollar got hammered in Asia, ending the session as the worst performer by far fter breaking 2 keys level, first 1.0180 then 1.0150, recording a fresh 7-month low. The New Zealand Dollar followed its neighbor's tail, also having a clean breakout of 0.8220/25. The Euro stabilized just above 1.30 after inconclusive headlines out of Italy over the weekend. The Japanese Yen was the winner of the session, with the market little impressed on the first comments from the new BoJ chief nominee Mr. Kuroda. The US Dollar stood as the second strongest currency.
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