European Session – Pound falls to month low against euro after UK jobs data
April 17, 2013 12:53 pm
The euro had a very choppy European session on Wednesday, pretty much reversing all of yesterday’s gains made against the dollar. There was some market chatter that a sell off was caused by the European Central Bank’s executive board member Bini Smaghi said that the ECB has to find ways to avoid the euro from gaining further.
With no key fundamental data released today, direction was driven by mainly technicals.
EURUSD was unable to break above the key $1.32 level hit yesterday. After two tests of this resistance level, the pair fell back down to $1.3119.
Sterling slid to an eight-day low against the dollar and tumbled to a one-month low against the euro after some data releases. A UK government jobs report showed UK unemployment rose and wage increases slowed, adding to evidence the economy is weakening.
The Bank of England minutes of the April 4 policy meeting showed MPC members remained split in whether to adopt more stimulus measures.
GBPUSD opened the session at $1.5348 and fell to $1.5242 while EURGBP rose to 0.8635 from 0.8582.
USDJPY pulled back in the Europe session to a low of 97.61 after advancing to a high of 98.42 in Asia. Likewise, EURJPY eased back on profit taking to 128.09 from 129.76 yen.
Yen is expected to resume weakness though, due to the longer term weakening effects of the Bank of Japan’s recent monetary policy easing steps taken to fight deflation in the country.
The euro had a very choppy European session on Wednesday, pretty much reversing all of yesterday’s gains made against the dollar. There was some market chatter that a sell off was caused by the European Central Bank’s executive board member Bini Smaghi said that the ECB has to find ways to avoid the euro from gaining further.
With no key fundamental data released today, direction was driven by mainly technicals.
EURUSD was unable to break above the key $1.32 level hit yesterday. After two tests of this resistance level, the pair fell back down to $1.3119.
Sterling slid to an eight-day low against the dollar and tumbled to a one-month low against the euro after some data releases. A UK government jobs report showed UK unemployment rose and wage increases slowed, adding to evidence the economy is weakening.
The Bank of England minutes of the April 4 policy meeting showed MPC members remained split in whether to adopt more stimulus measures.
GBPUSD opened the session at $1.5348 and fell to $1.5242 while EURGBP rose to 0.8635 from 0.8582.
USDJPY pulled back in the Europe session to a low of 97.61 after advancing to a high of 98.42 in Asia. Likewise, EURJPY eased back on profit taking to 128.09 from 129.76 yen.
Yen is expected to resume weakness though, due to the longer term weakening effects of the Bank of Japan’s recent monetary policy easing steps taken to fight deflation in the country.
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