Forex: EUR/USD back above 1.3100

FXstreet.com (Córdoba) - After choppy price action, which saw EUR/USD spike briefly above 1.3100 and pull back, EUR/USD resume the upside on firmer footing and rose to fresh daily highs. At time of writing, EUR/USD is trading at the 1.3110/15 area, having set a peak of 1.3127 in recent dealings as comments from the G20 continue to hit the wires.

ECB's Weidmann explained on Friday that comments in WSJ interview were not intended to signal change in trend on ECB rates, adding that interest rates are currently appropriate and that the ECB may adjust rates if data changes.

From a technical view, "Steady gains above 1.3115 will likely favor an upward continuation in the pair, with 1.3150 as immediate target, ahead of 1.3200 area", says Valeria Bednarik, analyst at FXstreet.com. "Dips up to 1.3040 will remain as buying opportunities".

Apr 19, 2013

Weidermann comments suggest weak economic data could be ECB policy’s Achilles heal

Recently in a release, European Central Bank Governing Council member Jens Weidmann states the bank would only cut interest rates if the economic data continues to paint a more grim picture. “We didn’t change interest rates at our last meeting as they are currently appropriate and in accordance with our assessment of economic developments, price stability and our monetary analysis,” Weidmann, added today in Washington. “Of course, we will reassess the adequacy of the rates if the data change.”

Forex: GBP/USD falls below 1.5300

The Sterling is extending its decline against the Greenback and after falling around 85 pips since the 1.5365, intra-day high reached in the Asian session, the GBP/USD has been trading lower to break below the 1.5300 frontier and trade at daily lows at 1.5280.