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Forex: GBP/USD finds support at 1.4900

After bottoming in the area of 1.4900, the sterling found buying interest that pushed the cross to the current levels of 1.4930/35, as traders continue to digest the BoE decision and the strong figures from the NFP.

“We have also heard enough to know that a weaker pound is favored by both MPC and the Government. No matter that the negatives (falling household incomes) will surely outweigh the positives (improved profit margins for exporters). This is the policy and it will take GBP/USD to 1.40 next”, assessed the research team at Societe Generale.

At the moment, the cross is up 0.08% at 1.4933 facing the next hurdle at 1.5067 (trend line) followed by 1.5199 (high Mar.5).
On the downside, a break below 1.4886 (low Mar.8) would bring 1.4785 (low Mar.2010).

Asian markets mixed by Friday's US NFP and China's data

Asian equity indexes priced in Friday’s strong US non-farm payrolls, while having to count with ‘weaker than expected’ Chinese data released over the weekend. In Japan, machinery orders fell -13% in January, much worse than consensus of -1.7% and escalating diplomatic tension with North Korea wasn't enough to bring the South Korean index down.
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Forex Flash: EUR/USD aims the downside, directly offered while capped by 1.3135/57 - Commerzbank

The EUR/USD failed at the 23.6% retracement of the last leg lower, and Commerzbank analysts point to initial support at 1.2914 (55 week ma) and 1.2885/76 – the 7th December low and 78.6% retracement. “These represent the next key supports and break down points”, wrote analyst Karen Jones. “We would allow for some profit taking here ahead of a slide to our short term downside target, which remains to 1.2679/61, this is the 61.8% retracement of the move up from July 2012 and the November 2012 low”, she added, pointing to longer term target at 1.2400 then 1.2050/42, the 2012 low. “The market remains directly offered short term while capped by 1.3135/57 (accelerated down trend)”, she concluded.
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