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Forex: EUR/GBP takes profit at 0.8794 ahead of UK GDP estimate

The EUR/GBP conquered more space on the upside as it attempted at reaching the 0.8800 mark before 14:00 GMT. Then, the cross took profits from 0.8794 high and eased to 0.8780, for now.

The British Pound was hurt today after poor industrial and manufacturing data. UK industrial production fell -1.2% (consensus of +0.1%) and manufacturing production dropped -1.5% (consensus of 0.0%) in January. Annualized data contracted further from -2.1% to -2.9% (consensus of -1.1%) and from -1.6% to -3.0% (consensus of -1.1%), respectively.

TD Securities analysts explain the fairly broad based decline in manufacturing that wiped out the 1.5% gain in December: “A shutdown in a North Sea oil platform caused the Oil and Gas sector to fall 4.3% in the month, but in fact, the boost for the utilities sectors from the cold weather more than compensated for this hit within the headline IP data and helped the sectors outside of manufacturing, including the platform shutdown, moderate the weakness in this month’s production data”, wrote analyst Tim Davis.

The UK NIESR GDP Estimate (3M) in February is due at 15:00 GMT. UBS analysts are bullish: “There is potential for further upside to test resistance at 0.8831, a break above would open the way to 0.9021”, wrote analyst Gareth Berry, pointing to support at 0.8676 ahead of 0.8589.

Commodities Brief – Gold makes failed attempt at 1600, crude oil overtakes 93.00 mark

Gold prices rallied earlier today, however the attempt to overtake the 1600 mark/calculated resistance/upside barrier was stymied. After the US open the yellow metal has once again gone on the defensive Tuesday, paring some of is recent gains and settling at USD $1594.05 per oz. Investors will await a fresh signal as to the direction of gold in the near-term, as a break of the 1600 level could lead to a move higher.
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Forex: GBP/USD around 1.4860/70 ahead of UK NIESR

The London morning tumble to 1.4832 low was almost retraced after the bounce to 1.4909, but the pair didn't hold there and allowed a move lower to 1.4860/70, where it is wandering around ahead of UK NIESR GDP Estimate data. The GBP/USD trades at 1.4868, -0.32% on the day.
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