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Forex: GBP/USD drops to 1.525/30

FXstreet.com (Barcelona) - The sterling is extending its intraday correction to the area of 1.5230 on Wednesday, accelerated after the BoE inaction and the softer tone from the UK’s labour market.

In the wake of the recent IMF statements on the UK economy, Analyst Richard Driver at Caxton commented, “The Spring Budget represented Osborne’s big opportunity to adopt a ‘Plan B’ and he declined it… Osborne remains preoccupied with keeping the rating agencies onside and politically it would be a humiliating reversal to abandon austerity. Though we expect the triple-dip to be avoided, UK growth is in awful shape, the IMF is telling us nothing new here and the fact remains that conditions are even worse in the euro zone”.

At the moment, the cross is losing 0.73% at 1.5249 and a dip beyond 1.5199 (low Apr.5) would aim for 1.5034 (low Apr.40 and then 1.5026 (low Mar.20).
On the upside, resistance levels line up at 1.5386 (high Apr.15) ahead of 1.5409 (high Apr.12) and finally 1.5412 (high Apr.11).

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Commodities Brief – Precious metals bounce, gold pares losses to trade at 1389

The yellow metal has bounced Wednesday after a stutter that took spot prices below the 1372 mark during European trading. However, in recent moments, gold has pared its losses to shoot back up to USD $1388.89 in these moments, ahead of US trading. Prices still remain entrenched below the 1400 resistance however. The excessive oversold conditions on different timeframes were the main catalyst for the move – accordingly, the market is likely to see more fluctuations and high volatility within the upcoming period.
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