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

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting...

HotForex Rating
XTB Rating
FIBO Group Rating
Z.com Trade Rating
EXNESS Rating
OANDA Rating

TropicalTrade Rating
99Binary Rating
Binary Brokerz Rating
Empire Option Rating
IQ Option Rating
OptionTrade Rating