EU Morning Report - Sterling slides to lower ground
By NikolasX | February 4, 2013 7:56 PM EST
The euro (EUR) continued its climb against the US dollar (USD); failing however to push above 1.37. The relative economic calm in the single currency could again come under renewed stress as differing political interests within the Eurozone push for and against a bailout for the tiny island nation of Cyprus. At the same time Spanish Prime Minister Mariano Rajoy, which had enforced a fierce austerity program to indebted Spain has come under calls to resign amid allegations of accepting illegal payments. Citing German finance minister Wolfgang Scheuble “The euro crisis is not over”.
§ Brent Crude (BRT), currently at 116.48, continues its higher highs moving steadily towards its previous resistance at 117.80.
§ The euro (EUR) has gained considerably against a weaker Japanese yen (JPY) moving above 126.60. The move is supported as the European economy consolidates and at the same time Japanese suggest that a weaker yen is needed to boost exports.
§ The US500 (SPI), which tracks the largest 500 American companies, had pushed above 1509 and is testing its support around 1504.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.3585||LONG @ 1.3585||35% of deals buy EUR|
|.||USDJPY||92.30||LONG @ 92.30||33% of deals buy USD|
|.||GBPUSD||1.5775||SHORT @ 1.5775||66% of deals buy GBP|
|.||AUDUSD||1.0390||LONG @ 1.0390||59% of deals buy AUD|
|.||GOLD||1660||LONG @ 1660||74% of deals buy GOLD|
|.||OIL||97.30||LONG @ 97.30||53% of deals buy OIL|
|.||USD||15:00||Factory Orders m/m||2.3%|
|.||NZD||21:45||Labour Cost Index q/q||0.5%|
The British Pound (GBP) slid to a low of 1.5702 against the US dollar (USD) after failing to pass resistance at 1.5874 on Friday. At the same time the pound is moving way below its moving average, adding to the bearish sentiment. The next step for the sterling will be to test support at 1.5685.