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Forex: GBP/USD retreats from highs after Fitch

FXstreet.com (Barcelona) - The sterling dropped from multi-week highs in the vicinity 1.5245 to levels sub 1.5200 after agency Fitch placed the UK on rating watch negative. The agency backed its decision on recent growth and debt forecasts, and expects to decide whether to downgrade in a month time.

“The 2013 resistance line at 1.5262 and further up the February 22 high at 1.5321 as well as the breached one year resistance line at 1.5340 may also be reached in the days to come but should then cap”, assessed Karen Jones, Head of FICC Technical Analysis at Commerzbank. The analyst expects the cross to slip back to the psychological mark of 1.5000 in the upcoming weeks.

At the moment, the cross is up 0.28% at 1.5213 with the next resistance at 1.5266 (Upper Bolliinger) followed by 1.5330 (high Feb.22) and then 1.5452 (high Feb.20).
On the other hand, a breakdown of 1.5090 (low Mar.21) would bring 1.5079 (MA21d) and then 1.5061 (MA10d).

Fitch Places United Kingdom on Rating Watch Negative

Fitch Ratings has placed the United Kingdom sovereign debt under rating watch negative as they will decide within downgrade the UK or not in the near term. The decision will be taken by the end of April.
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Forex Flash: JPY depreciation stalls – Deutsche Bank

The pace of JPY depreciation has somewhat stalled with the currency now about 1.9% off the recent lows against the Dollar. Over the last 24 hours BoJ Governor Kuroda has been on the wires reminding us the central bank's determination to achieve a 2% inflation target. At this inaugural press conference yesterday, Kuroda said "we will do whatever we can" to achieve the 2% price target "at the earliest time possible".
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