Pound fell as UK deficit widens and euro vulnerable to Italy politics

September 26, 2013

The European session on Thursday was lively as focus temporarily shifted away from US politics and the US dollar and Euro and Sterling took the spotlight.

The pound fell from a one-week high against the dollar after data showed soft UK GDP and a wider than expected current-account deficit. This raises concern that the country’s road to recovery continues to rough.

GBPUSD dropped to $1.6035 from $1.6094.

The euro fell after reacting to news on Italian politics. Ex-Prime Minister Berlusconi's supporters threaten to resign as the Italian Senate considers his expulsion, making the coalition government fragile.

EURUSD tumbled to a session low of $ 1.3482, down from an earlier session high of $1.3525.

The yen weakened for the first time in five days against the dollar today on speculation that Japan will cut corporate taxes. This made shares rally since the tax cut will make companies more profitable. When Japanese equity markets rise, yen tends to fall since they have an inverse correlation.

Whenever it’s seen as a “risk-on”, then the safe have yen is sold off.

USDJPY was propelled to a high of 99.10 in Asia and went into early US session just above 98.75.

Focus is now on US economic data in the upcoming New York session. Second quarter US GDP is due. Other economic data out is Pending home sales figures for August, a reading of manufacturing activity in the Midwestern US and initial jobless claims numbers from the US  labor department.

Publication source
FxNet information  FxNet reviews

October 24, 2016
Dollar at a 3-week winning streak
The US dollar completed three weeks of back to back gains with the US dollar index seen trading above the 98.55 handle. Without any pullback so far, further upside could come at a significant risk...
October 24, 2016
Golden week for dollar but USD/JPY bucks trend
It has been a very good week for the US dollar and a really bad one for the euro and Canadian dollar, among others. The rally has lifted the Dollar Index to its highest level since early February and possibly on course to 100...
October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...

Larson&Holz IT Ltd Rating
FxPro Rating
XM Rating
FIBO Group Rating
Vantage FX Rating
FBS Rating

Empire Option Rating
OptionsXO Rating
OptionFair Rating
TopOption Rating
365BinaryOption Rating
Beeoptions Rating