Back
26 Apr 2013
Forex: EUR/GBP retests April low at 0.8410
FXstreet.com (Barcelona) - Following yesterday’s rebound of the British Pound that sent the EUR/GBP down to April’s lows, at 0.8410, the market is retesting area that protects the cross from sliding through January prices. It was in January that the EUR/GBP made its rally from 0.8100 area that only ended at 0.8815 high in February. A 700-pip move.
The ECB said Spanish banks bought €15.8B of government bonds in March, while sovereign bond buying by banks in Italy rose €10.8B in March. Also, deposits rose in Portugal, Spain, Italy and Slovenia, but fell by 3.9% in Cyprus in March. EMU money supply eased in March from 3.4% to 3.0% (3m) and from 3.1% to 2.6% (YoY), below 3.0% consensus. Private loans fell -0.8% as expected, like in February (revised lower, from -0.9%).
German import prices report was already published, at -0.1% (MoM) and -2.3% (YoY), less contracting than the expected -0.2% and -2.4%, respectively. French consumer confidence remains unchanged at 84.
MIG Bank analysts Bijoy Kar and Luc Luyet are monitoring the test of the key support at 0.8411, but “from a longer-term perspective, the recent inability to make any significant new highs and the move below the key support at 0.8445 (11/02/2013 low) suggest a weakening momentum”. “Another key support can be found at 0.8266 (16/01/2013 low)”, they added, pointing to resistance for a bounce is given at 0.8497 (24/04/2013 low) and key resistance at 0.8637 (17/04/2013 high).
The ECB said Spanish banks bought €15.8B of government bonds in March, while sovereign bond buying by banks in Italy rose €10.8B in March. Also, deposits rose in Portugal, Spain, Italy and Slovenia, but fell by 3.9% in Cyprus in March. EMU money supply eased in March from 3.4% to 3.0% (3m) and from 3.1% to 2.6% (YoY), below 3.0% consensus. Private loans fell -0.8% as expected, like in February (revised lower, from -0.9%).
German import prices report was already published, at -0.1% (MoM) and -2.3% (YoY), less contracting than the expected -0.2% and -2.4%, respectively. French consumer confidence remains unchanged at 84.
MIG Bank analysts Bijoy Kar and Luc Luyet are monitoring the test of the key support at 0.8411, but “from a longer-term perspective, the recent inability to make any significant new highs and the move below the key support at 0.8445 (11/02/2013 low) suggest a weakening momentum”. “Another key support can be found at 0.8266 (16/01/2013 low)”, they added, pointing to resistance for a bounce is given at 0.8497 (24/04/2013 low) and key resistance at 0.8637 (17/04/2013 high).