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Forex: GBP/USD edges lower during ECB press conference

Despite some initial volatility, GBP/USD has avoided the sharp reaction seen elsewhere as ECB President Draghi´s delivered his policy statement and subsequent press conference.

Despite an initial spike lower and its continued bearish momentum, GBP/USD has avoided the sharp moves seen in both EUR/USD and USD/CHF during the headline event. Spot is currently trading at 1.5683, ahead of support between 1.5650-70 while hourly RSI is dipping lower and currently at 53. In the press conference, Draghi made a point of stating that while he sees upside inflation risks to currency strength, he believes that exchange rates should reflect economic fundamentals and that as an independent institution, the ECB was not under political pressure to embalk on further easing measures. He feels that balance sheet restructuring will continue to weight on growth in the short term, but he is optimistic for medium term prospects.

ECB's Draghi: Economic activity should gradually recover in 2013

The ECB Governing Council decided to keep the main interest rate unchanged at 0.75% at their December monetary policy meeting. Speaking at the press conference following the meeting ECB head Mario Draghi commented on the considerations underlying the decision.
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American equity markets pull back Thursday

The US Stock market experienced a slightly negative opening Thursday after the publication of economic data in the United States with much of the world eying the central bank action in Europe. In the US, Continuing Jobless Claims (January 27) came in at 3.224M, relative to a figure of 3.216M previously. In addition, Initial Jobless Claims (February 3) were reported at 366K, against expectations calling for only 360K.
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