The Bank of England maintained the current interest rate of 0.50%, as expected. However, the GBP/USD dropped to its lowest level since April 1st following negative data from the UK. The yearly Halifax House Price Index, monthly Trade Balance EU and Non EU all showed lower than expected figure. The pair reached a low of 1.476 and is now rebounding due to technical reasons. The resistance can be found at 1.485 and the support at 1.479. Tomorrow, the UK is to release the Manufacturing Production for the month of February, if the actual figure is lower than the expected 0.4%, this could cause the GBP to decline in the short term.
USD/JPY
The Dollar weakened against the stronger Yen as sentiment was boosted over the outlook of the Japanese economy. Officials speaking at the Bank of Japan Press Conference and monthly meeting were optimistic in regards to the “moderate recovery” of the economy and acknowledged increasing Industrial Production and exports. On the other hand, the Dollar weighed after the FOMC Meeting Minutes as traders remain cautious over the timing of an interest rate hike increase. it was stated that a rate hike was dependant on positive economic reports over the next couple of months and an increase could be possible by June. The pair is now trading around 119.8
Forex News April 9th 2015
GBP/USD
The Bank of England maintained the current interest rate of 0.50%, as expected. However, the GBP/USD dropped to its lowest level since April 1st following negative data from the UK. The yearly Halifax House Price Index, monthly Trade Balance EU and Non EU all showed lower than expected figure. The pair reached a low of 1.476 and is now rebounding due to technical reasons. The resistance can be found at 1.485 and the support at 1.479. Tomorrow, the UK is to release the Manufacturing Production for the month of February, if the actual figure is lower than the expected 0.4%, this could cause the GBP to decline in the short term.
USD/JPY
The Dollar weakened against the stronger Yen as sentiment was boosted over the outlook of the Japanese economy. Officials speaking at the Bank of Japan Press Conference and monthly meeting were optimistic in regards to the “moderate recovery” of the economy and acknowledged increasing Industrial Production and exports. On the other hand, the Dollar weighed after the FOMC Meeting Minutes as traders remain cautious over the timing of an interest rate hike increase. it was stated that a rate hike was dependant on positive economic reports over the next couple of months and an increase could be possible by June. The pair is now trading around 119.8
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