Forex: GBP/USD takes a breather above 1.5000

The British pound is taking a breather on Monday and has entered in a consolidation phase after the last bearish attack failed to decisively break below the important 1.5000 level and left the GBP/USD in search for direction.

GBP/USD bottomed out at 1.4998 during the European trade, weighed by UK PMI data, but managed to bounce and turned slightly positive for the day. However, GBP/USD has spent the last hours within a slim range unable to pick up momentum, and it is presently around 1.5050, just 10 pips above its opening price.

In terms of technical levels, immediate supports are seen at 1.5000 followed by 1.4985 (low Mar 1) and 1.4950 (low Jul 12), while on the flip side resistances could be found at 1.5100, 1.5120 (100-hour SMA) and 1.5185 (high Mar 1).

Mar 4, 2013

Forex: EUR/USD remains locked around 1.3000

The bloc currency is clinging to the psychological level at 1.3000 on Monday, as the market is still looking for any catalyst to define a trend either way...

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Mar 4, 2013

Forex Flash: ECB to leave rates unchanged on first signs of economic recovery – Merrill Lynch

Broadly supportive PMI releases for February as well as improving sentiment indicators released by the European Commission are first signs of economic recovery in the Eurozone, but that doesn't mean financial market stabilization. According to the ECB, the "M3 report suggests that credit creation is still very slow in the euro area, with SMEs still finding it hard to obtain credit", wrote Merrill Lynch analysts. "Overall, these data are consistent with our expectation of a moderate contraction (-0.2% qoq) in Q1 2012. Yet these data also confirm our view that divergence is on going across euro area countries", they added, pointing to surging retail sales in Germany in January by 3.1% mom/+2.4% yoy (and the strongest monthly gain in six years) while French consumer spending dropped by 0.8% mom/-0.2%.

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