The pound offsets some of yesterday’s losses ahead of UK bond auction

March 13, 2013 in Forex Analysis

+1
  

 

 

The pound offsets some of yesterday’s losses ahead of UK bond auction

 

Economic news (13 March 2013) – In today’s early session the sterling managed to recover slightly from its yesterday’s tumbling against the dollar when it reached a fresh low of $1.4837, unseen since June 2010. The pound was trading higher at $1.4953 at the time of writing as markets anticipate the sale of UK government bonds maturing in 2052.

 

During Tuesday trading the sterling was put yet again under huge pressure after the release of economic data indicating that January UK industrial and manufacturing production output fell much more-than-expected. The UK Bureau of National Statistics report left market makers surprised as it revealed a decline by 1.2% in industrial production for January, while the manufacturing report registered a fall of 1.5%. It is indicated that one of the main reasons for this decline is the closure of a North Sea oil platform and the subsequent loss in revenue which erased the growth accumulated during the previous month.

 

The pound has already become the worst currency performer this year on fears that the UK may enter into an unprecedented triple-dip recession. Some analysts say the decline is highly likely to continue as BoE signals for further quantitative easing if the UK economic data remains weak.

Analysts also commented that investors are more reluctant to sell the pound against the euro rather than the dollar on signs that the US economy is likely to recover more quickly than that of the Eurozone.

 

Technical analysis

GBP/USD

At yesterday’s session the pound moved in the range of 1.4830-1.4910. This morning the currency pair was trading at 1.4925-1.4950.

Should the pound successfully overcome the resistance zone at 1.4930-1.4950, its aim will be reaching and testing the 1.4970-1.5000 zone. If successful, the upward trend will continue to 1.5020-1.5040. If it falls below the 1.4920-1.4990 support zone, the next support zone is expected to be at 1.4850-1.4820. In case of a breakdown, the downward trend will continue to 1.4800-1.4780.

 

Source: dfmarkets.co.uk

Disclaimer: The Content of these charts and analyses does not constitute any form of advice or recommendation by Delta Financial Markets to buy, sell (or refraining from making) any trade or investment. You may wish to seek independent advice before entering into transactions.

Delta Financial Markets shall not be held liable by you or any others for any decision made or action taken by you or others based upon reliance on or use of information or materials obtained or accessed through use of these technical analyses and charts. DF Markets assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page. DF Markets shall not be liable for any special, indirect, incidental, or consequential damages.

 

 

Author Info

Profile photo of DF Markets

DF Markets (Delta Financial Markets Ltd.) is a Forex and CFD broker based in London. The company is regulated by the Financial Services Authority (FSA register number 534027) and the protection of client funds is ensured by the Financial Services Compensation Scheme (FSCS). DF Markets is fully committed to provide individual and institutional investors with high quality financial services through implementation of the best business practices. Contact the author at Google: +DF Markets.

Contributor Contact, Accountability and Policies

Leave a reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>