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GBP/USD Technical analysis for 1/5/2013

Discussion in 'Forex Daily News & Outlook' started by Reena, May 1, 2013.

  1. Reena

    Reena New Member

    Mar 12, 2013
    Likes Received:
    UK Manufacturing PMI today will help to set the tone for GBP as a strong
    release should help to solidify recovery as last week’s UK Prelim GDP
    demonstrated that UK has avoided a triple dip recession; however, a
    weaker than expected release will bring doubt to the mix.

    The greenback dropped against majority of its peers after U.S. Chicago
    PMI unexpectedly fell to its lowest level in 3 years, increasing
    speculation the Federal Reserve will maintain its bond buying under QE
    program as policymakers began a 2-day FOMC meeting today.

    U.S. Chicago PMI fell to 49 in April, the lowest since September 2009, from 52.4 last month.

    the single currency traded sideways in Asian morning and rose briefly
    to 1.3121 ahead of European open, price dropped to session low at 1.3052
    in European morning after the released of weaker-than-expected Germany
    retail sales before recovering to 1.3084. Price jumped in New York
    morning and rose to an intra-day high at 1.3186 on dollar's broad-based
    weakness after U.S. Chicago PMI unexpectedly dropped to its lowest level
    in 3 years. Later, euro pared intra-day gains and retreated to 1.3146
    at New York midday before stabilising.

    Germany retail sales were reported at -0.5% m/m, lower than forecasts of 0.0%.

    the Japanese yen, the greenback remained under pressure in Asia and
    weakened to 97.61 in European morning before staging a recovery to 97.79
    in New York morning. Dollar fell briefly but sharply to an intra-day
    low at 96.99 after the release of weak U.S. Chicago PMI, however, price
    pared intra-day losses and rebounded to 97.62 in New York afternoon.

    British pound traded with a firm undertone in Asia and edged higher to
    1.5507 ahead of European open. Despite a brief pullback to 1.5474 ahead
    of New York open, price rallied to an intra-day high at 1.5570 in New
    York morning on dollar's weakness. However, cable pared intra-day gains
    and retreated to 1.5529 in New York afternoon before stabilising.

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