Call us now on 
Sterling
The Pound has lost strength after having hit a fresh 4-month high at 1.5305 and has dropped to levels right above yesterday’s high at 1.5260, a support level which is being tested at the moment.
According to the Swiss e Trade Strategy Team, the pound is about to give away recent gaiins dropping to 1.5150: “In a bold move, cable is trying to break a long-term resistance zone in early European hours, currently trading at 1.5270, near the day’s high. We expect the upmove to lose momentum around the 1.5300 mark, turning into a down movement towards the 1.5150 level.”
Euro
The Euro has won around 75 pips against the Dollar last hour, rising from 1.3620 to reach a new 7-week high at 1.3695 and test the 1.3700 level. Currently the pair is trading around 1.3680/90, 0.70% above today’s opening price.
According to Peter Rosentreich, analyst at ACM - Advanced Currency Markets, Bernanke and Trichet comments are helping risk appetite: “The EUR continues to be helped by recent risk-appetite, supported by equity market rallies and declining VIX and growing credibility to the ‘green shoots’ theory. In addition, as the market discounts the probability of a “black swan” event in the financial sector, the flight to safety trades becomes less relevant. With focus being put back on the Fed’s massively bloated balance sheet, timing of recovery and clean break of 200d ma, we expect traders are looking to build long position in the EUR. Comments by Bernanke and Trichet have added to the growing optimism surrounding the global recovery. Bernanke attempted to talk up the USD yesterday, stating that “the USD will be strong because the US economy is strong”. On the comment both EUR and GBP sold off dropping to intra-day lows but then quickly recovering, as trader focused/ believing the “US economy is strong portion” of more than the rational of a strong USD.”
More Articles
