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Forex: GBP/USD retraces from lows after improving UK Services PMI

FXstreet.com (Barcelona) - The GBP/USD started its descending curve today from 1.5130 area and dropped by 100 pips to as low as 1.5034. The pair bounced to 1.5080 in reaction to the release of UK Markit Services PMI in March, which has risen from 51.8 to 52.4. The greenback is stronger against its counterparts as Japan, the Eurozone and the UK are attracting investors’ eyes toward its central banks and beat consensus of 51.5.

“The risk of further easing does remain alive, but we think that it would require further disappointment in the macro data than what we’ve already seen, and that the BoE is more likely to lean toward targeting measures like expanding FLS rather than more QE”, wrote TD Securities analysts, adding that only a drop to 49 or lower in the UK Services PMI would tip the BoE into delivering more QE today.

“GBP/USD has traded through but has yet to see a close below the 20 day ma at 1.5101. Further consolidation remains on the cards. While capped by the 1.5269 June 2012 low, we will maintain an immediate bearish bias”, wrote Commerzbank analyst Karen Jones, targeting the 1.5000 region then the 1.4832 March low

EU Feb Producer Price Index (MoM) declines to 0.2%; 1.3% (YoY)

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