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Forex: GBP/USD keeps the mood above 1.4900

The sterling is resuming its upside after falling to the area of 1.4900/10 on solid results from the US retail sales during February, surpassing expectations and adding buying pressure to the greenback.

However, the sterling is posed to suffer more as the BoE minutes are due next week alongside the UK Budget.

The Swiss bank UBS keeps the bearish outlook on the cross, as confirmed by Strategists G.Yu and G.Berry: “Any upside will be limited and resistance at 1.5015 should hold. Initial support is at 1.4832; a break below would open 1.4687”.

At the moment, the cross is up 0.17% at 1.4924 facing the next hurdle at 1.5015 (MA10d) ahead of 1.5047 (high Mar.8) and then 1.5083 (high Mar.7).
On the flip side, a breakdown of 1.4832 (low Mar.12) would aim for 1.4803 (low Jun.23 2010) and finally 1.4776 (Lower Bollinger).

Forex Flash: EUR/GBP move could change quickly given EUR stasis – UBS

According to Research Analyst Gareth Berry at UBS, “For investors tracking the sterling's performance against a basket of currencies looking for valuation 'turns', the EUR/GBP valuation could occur more rapidly compared to the GBP/USD. This fits the fundamental view as well – excessive euro appreciation is probably something the Eurozone is still not ready for at this stage, and as investors begin to price in the growth/monetary consequences, GBP would be in a position to benefit.”
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Forex Flash: Range trade 10-year US treasuries look to continue – RBS

The market continues to see a 1.70% to 2.13% range in 10-year US Treasuries. According to the RBS Research Team, “The key support remains 2.13% for 10y-years while the near-term resistance is 1.80%, a break through here should see extension to 1.70%. In addition, momentum measures are mixed – suggesting that the range trade will continue.”
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