EU Morning Report - Sterling slides to lower ground

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By NikolasX | February 4, 2013 7:56 PM EST

Easy Forex

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!

 

. Pivot Preference1 Sentiment2
. 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
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
.
Currency Time (GMT) Event Forecast
. GBP 09:30 Construction PMI 49.7
. USD 15:00 Factory Orders m/m 2.3%
. NZD 21:45 Labour Cost Index q/q 0.5%

 

Movers Shakers
GBPUSD
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.

 

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