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29 Mar 2013
Forex: GBP/USD just below 1.5200 after European data
FXstreet.com (Barcelona) - The GBP/USD has fallen to as low as 1.5178 before the release of French consumer spending (disappointing investors at -0.2% vs +0.4% consensus) and producer prices (at +0.4% vs +0.3% consensus). As the pair bounces back towards the 1.5200 mark, Italian data has been published. The market remains just below the psychological level.
Italy Producer Price Index in February came in lower than expected: the monthly figure at 0.1% (consensus of 0.5%) and the annualized figure falling from 0.7% to 0.3% (consensus of 0.7%). The preliminary release of the Italian Consumer Price Index in March was below consensus, at 1.7% YoY (consensus of 1.8%) and 0.3% MoM (consensus of 0.4%). EU normalized, the CPI rose 2.3% (consensus of 2.2%) on the month. The Greek PPI rose 0.8% in February and Retail Sales fell further, from -8.3% to -16.4% in January.
“Today’s price action neutralized the bearish outlook began this week, and threatens to continue the short-term bullish outlook as it challenges the 2013 falling trendline. A break above 1.5260 will be a clear break above the TL and give a near-term bullish outlook first toward the 1.5321 resistance pivot, then the 38.2% retracement level in the 1.5405-1.5422 area”, wrote FXstreet.com analyst Fan Yang.
Italy Producer Price Index in February came in lower than expected: the monthly figure at 0.1% (consensus of 0.5%) and the annualized figure falling from 0.7% to 0.3% (consensus of 0.7%). The preliminary release of the Italian Consumer Price Index in March was below consensus, at 1.7% YoY (consensus of 1.8%) and 0.3% MoM (consensus of 0.4%). EU normalized, the CPI rose 2.3% (consensus of 2.2%) on the month. The Greek PPI rose 0.8% in February and Retail Sales fell further, from -8.3% to -16.4% in January.
“Today’s price action neutralized the bearish outlook began this week, and threatens to continue the short-term bullish outlook as it challenges the 2013 falling trendline. A break above 1.5260 will be a clear break above the TL and give a near-term bullish outlook first toward the 1.5321 resistance pivot, then the 38.2% retracement level in the 1.5405-1.5422 area”, wrote FXstreet.com analyst Fan Yang.