Forex: GBP/CAD supported 1.5480

FXstreet.com (London) - The Canadian dollar had been suffering in the light of a poorer economic outlook, certainly in comparison to its southern neighbour. Albeit, it has had a much better run on crosses yesterday, but only to have retraced part of its gains against Sterling with a high of 1.5520 in the European session. It has now resumed trading back in the top end of the 1.5400 territories with a high percentage drop in the past hour to 1.5467. With only second tier data out today, USD/CAD is expected by the market to remain in a range 1.0080/1.0130 which would equate to a weaker cross, given the moves in cable to yet even lower levels. Support 1.5480 and 1.5440 to make way for 1.5390.

May 14, 2013

Forex Flash: 117.66 level puts wrap on Gilt selloff – RBS

According to Technical Strategist Dmytro Bondar at RBS, “Gilts reached support at 117.66, which might pause further weakness in the near-term, but remain bearish post 118.64 breakout and forming a gap around the level. The latter region of 118.61/64 has become a major resistance for the market.”

Forex Flash: ECB is technically prepared to introduce negative deposit rates – BTMU

The euro has nudged higher against the US dollar climbing back above the 1.30-level driven by a weaker US dollar. The Euro upside potential in the near-term has been dampened by dovish comments from ECB Governing Council member Visco who told CNBC yesterday that the ECB is “technically prepared” to introduce negative deposit rates depending upon whether the economy needed further help. Bank of Italy Governor Visco also stated that he believes the measure would be “effective” while downplaying the importance of any unintended consequences, which could be worked on.