Forex: GBP/USD in fresh lows around 1.5440/50

The sterling is intensifying its decline at the beginning of the trading week, testing levels last seen in July 2012 in the proximities of 1.5440/50

After dovish comments by M.King in last week’s speech after the inflation report, M.Mohi-uddi – Director of FX Strategy at UBS – argues that the pound is posed to suffer ahead of the higher inflation levels and a desired weaker exchange rate. “In our view the pound seems clearly at risk of following the yen and suffering the next large-scale devaluation for a major currency”, concluded the expert.

At the moment, the cross is retreating 0.31% at 1.5455 with the next support at 1.5414 (low Jul.13) ahead of 1.5393 (low Jul.12) and then 1.5375 (low Jun.6).
On the other hand, a break above 1.5544 (high Feb.14) would expose 1.5550 (high Feb.15) and finally 1.5614 (MA10d).

Feb 18, 2013

Forex: EUR/USD targets 1.3273, initial resistance at 1.3463 - Commerzbank

Commerzbank analysts have their eye on the 1.3273 3 month uptrend as the EUR/USD gets increasily under pressure: "The 1.3273/56 band is key support near term, this is the 16th Jan low, the 61.8% retracement and 3 month support line. This is likely to hold the initial test – however the risks have increased that we will see an eventual break down through here towards the more important 1.3202 7 month uptrend and a close below here is required to negate the up move completely", wrote analyst Karen Jones, pointing only to recovery above 1.3520 to neutralize the immediate outlook and potentially re-target the 1.3711 February high (not favoured). "Initial resistance is the accelerated downtrend at 1.3463", Jones added.

Commodities Brief – Precious metals rally as China returns to the fold

Following a dismal stretch last week, Gold prices recovered off of from a six-month low on Monday, as traders in Asia returned to the physical market as China reopened after the Lunar New Year holiday. Amidst pressure from the rising USD against the euro after worse than expected growth data, Gold prices proved to be a one-way affair, shedding several percentage points. Indeed, China`s absence from the physical market for the Lunar New Year public holiday also pressured gold last week. As of European trading, the yellow metal has fared better, as prices were capped at 1617 region, before waning again to USD $1614.73, up +$5.93 at the time of writing.