GBP/USD News

The euro defied the odds in today's trading to climb higher against the U.S. dollar and the Japanese yen. At the moment, the euro rose 0.52% against the greenback to stand around $1.4186. The Japanese yen put up more resistance as the euro gained 0.47% against the yen to trade around ¥112.10. The Eurozone leaders are set to meet on Thursday to discuss the debt crisis on the Eurozone periphery. In particular, the Eurozone leaders are set to discuss the shape of the new Greece bailout. Reuters reports the Europeans have still not reached an agreement on which form the new bailout should take. Germany, the Eurozone's most influential member, is pushing for a participation of the private sector in the second bailout. In reality, this means that the private sector should shoulder some of the costs of the debt crisis in the Eurozone periphery. The German proposal has been received hostilely by the financial elites – the ECB and credit rating...

  Currency markets were relatively sideways in today’s trading, though the Japanese Yen strengthened as Asian and European equities were lower and that helped spur some move into the safe-haven Yen. The EUR/USD pair was flat throughout the session, unable to move above the 1.4655 level. The tentative Euro-zone deal on new financing package for Greece helped the EUR rally to end last week, but there are still unanswered questions regarding what constitutes a “credit event” which kept the EUR from extending its gains. One hurdle is that Standard & Poor declared last week that a delay in repayments would constitute a default by Greece, while other possibilities such as a “voluntary” offer to exchange debt could also constitute default. In any case, the market awaits further developments in the sovereign debt crisis as the Greek financing deal has yet to be signed off on. A spokesperson for Germany’s finance minister said it was not certain there will be a second bailout and under what terms. So the optimism from...

FOREX The Euro (1.4472) is coming down from yesterday's high of 1.4519, but is finding support around 1.4450. While that support holds, a test of the important resistance at 1.4600 is possible. USDJPY (83.90) has bounced back well from the 200DMA (at 83.49) yesterday and it may be trade from a range of 83.50-84.50 today. The EURJPY Cross (121.38) is consolidating, and is trading between 120.50-122. The cross remains bullish. A strong move above 122 might trigger further rise to 123+. The Cable (1.6256) fell sharply yesterday and is now moving around its support at 1.6250. The immediate outlook remains mixed. USDCHF (0.8974) had dropped below 0.9000 and could test 0.8900-8800 on the downside in the coming days. Aussie (1.0434) failed to sustain the break above 1.0500 yesterday and could fall to 1.0300 if it breaks below 1.0400. The Asian Currencies are trading slightly weaker. The Korean-Won is trading near 1092 and the Sing Dollar is trading near 1.2584. MARKETS The US markets fell yesterday. Dow...

Coming Up Today (All times GMT) 9:30am GBP CPI 10:00am EUR German ZEW Economic Sentiment 1:30pm CAD Trade Balance 2:00pm CAD Overnight Rate The US Dollar from Monday evening and until now has been in a correction across the board against the most of its counterparts. Janet Yellen and William Dudley, said on Monday that the US central bank should stay stick to its super-easy monetary policy, arguing that inflation is not a threat and unemployment remains too high. The greenback found support yesterday against a basket of major currencies after plumbing to 16-month low. The US dollar versus the Japanese Yen has been in a corrective mood after a rally the last week. The Japanese currency is on a slippery slope and the Japan’s central bank ultra easing policy has made the yen the funding currency of choice in carry trades. Against the Swiss Franc the US dollar is in a downtrend making new lows down to the 0.9018 support level and it was...

The euro fell against the dollar and other major currencies with the beginning of the week, in a correctional movement after the European currency rose to its highest level against the dollar in 15 months. The Japanese yen advanced against the dollar after the slowdown in machine orders index in Japan. The euro started today's session with a decline against the dollar, as the pair trades around 1.4455 after recording the highest at 1.4481 and the lowest at 1.4440. The pair faces a support at 1.4400. The daily momentum indicators show the pair in an overbought area. The pound traded lower against the greenback, trading around 1.6353 after recording the highest at 1.6390 and the lowest at 1.6346. The pair faces a support at 1.6300. The daily momentum indicators show the pair in an overbought area. The dollar/yen pair inclined during the Asian session, as the pair trades around the 84.76 level, recording the highest at 85.12 and the lowest at 84.62. The...

Coming Up Today (All times GMT) No important Economic News The US Dollar early on Monday remained steady against a basket of currencies as the market did not yet chose a direction for the coming week. The greenback has lost ground the previous week and there was discussion of whether the dollar lost its appeal as a safe-haven currency while the Swiss Franc is doing much better. The US dollar versus the Japanese Yen has been in a range bound early in the Monday morning between the 85.39 resistance level and the 84.61 support level. Against the Swiss Franc the US dollar is in a downtrend making new lows down to the 0.9057 level and found support there while the 0.9198 level is expected to hold any bounce up. The Australian is in an uptrend from the previous week and created a solid resistance at the 1.0582 level while the 1.00413 level is expected to hold any correction down. EURUSD The EURUSD forex pair...

Euro Initial support is at 1.4243 (Apr 7 low) followed by 1.4208 (Apr 6 low). Initial resistance is located at 1.4512 (Jan 15 2010 high) followed by 1.4561 (1.2867 plus 1.2588-1.4282) Yen Initial support is located at 84.51 (Dec 51 low) followed by 84.03 (Apr 5 low). Initial resistance is at 85.62 (50% retrace of 94.99-76.25) followed by 86.00 (Big Figure Resistance). Cable Initial support is located at 1.6257 (Apr 6 low) followed by 1.6091 (Apr 5 low). Initial resistance is at 1.6458 (Jan 19, 2010 high) followed by 1.6516 (Dec 7 2009 high). Australian Dollar Initial support is near 1.0412 (Apr 7 low) followed by the 1.0315 (Apr 6 low). Initial resistance is located at 1.0640 (0.8771 plus 1.618 of 0.8067-0.9222) followed by 1.1023 (61.8% retrace of 1.4885-0.4776). Gold Initial support is at 1447 (Mar 24 high) followed by 1430 (Apr 5 low). Initial resistance is at 1477 (1308.25 plus 0.618 of 1157.03-1431.25) followed by 1480 (Big Figure). Oil Initial support is located at 110.00 (Intraday Support) followed by 108.00...

Coming Up Today (All Times GMT) JPY - BoJ Monetary Policy Statement (Tentative) GBP - MPC Rate Statement (11:00) EUR - ECB Rate Announcement (11:45) & Press Conference (12:30) CAD - Building Permits (12:30) USD - Weekly Jobless Claims (12:30) GAS - Weekly Storage Report (14:30)   USDJPY Expectations of widening interest rate differentials between improving economies and Japan are reviving yen-funded carry trades. In the aftermath of the tsunami, investors are taking advantage of the BoJ zero interest policy to sell yen against higher-yielding currencies (AUD, NZD, CAD, EUR, CHF). In this context, all JPY crosses are moving in a bullish channel, a trend that is likely to continue if the Bank of Japan increases its lending facilities to avoid downward pressure on the economy. USDJPY Support/Resistance: 84.70/85.90 EURJPY Support/Resistance: 121.50/123.00 GBPJPY Support/Resistance: 138.25/140.00 EURUSD Yesterday, the EURUSD pair was almost unmoved by Portugal’s request to access the emergency lending program of the European bail-out fund. Currently, all eyes are waiting for today’s ECB rate announcement (11:00 GMT) with one question on everyone’s...

  By Barbara Zigah Markets had digested and accepted yesterday’s release of U.K. inflation data, and in early trading today, the Pound Sterling had moved broadly higher.  Unfortunately, that was all before the release of the Bank of England’s February inflation report.  As the central bank governor, Mervyn King, announced in his letter to the Chancellor of the Exchequer, the Bank was revising their growth forecast, suggesting that the U.K. economy can expect some rough times ahead.  Some analysts believe that Governor King was essentially setting the stage for what is likely to be several interest rate hikes during the course of the year. Had that been the only U.K. economic news of the day, the markets might have shown their appreciation in the Pound Sterling by pushing it higher.  However, the U.K. unemployment data also was released today, and that dampened market sentiment. According to the press release from the U.K.’s Office for National Statistics, for the last quarter of 2010, the unemployment...

INTRA-DAY GBP/USD: 1.5842 Last Update At 17 Jan 2011 09:33 GMT Despite cable's brief bounce fm 1.5832 to 1.5874, current retreat suggests further choppy trading below last Friday's high of 1.5889 wud continue n breach of 1.5832 wud bring weakness twds 1.5810 sup b4 prospect of another rebound later. Sell on recovery with stop as indicated n only abv 1.5889 wud extend rise fm 1.5345 to 1.5911 res. Range Forecast 1.5832 / 1.5860 Resistance/Support R: 1.5889/1.5911/1.5949 S: 1.5810/1.5784/1.573