Pound Recovers Against Most Majors; U.K. Trade Data Eyed
March 13 2012 - 6:18AM
RTTF2
In early European deals on Tuesday, the British pound recovered
its previous session's losses against the currencies of Japan,
Europe and Switzerland. But the pound showed choppy trading versus
the dollar.
Investors now focus on the U.K. trade data for January, which is
due at 5:30 am ET. The visible trade deficit is seen widening to
GBP 7.9 billion from GBP 7.11 billion in December.
The pound is now worth 0.8394 against the euro, compared to near
a 2-week low of 0.8426 hit in early Asian deals. The near term
resistance level for the pound is seen at 0.835.
The pound that fell to near a 2-week low of 1.4317 against the
franc at 3:20 am ET rebounded thereafter. At present, the
pound-franc pair is worth 1.4375 with 1.445 seen as the next upside
target level.
Swiss producer and import prices declined less than expected by
economists in February, the Federal Statistical Office said.
Year-on-year, the producer and import price index fell 1.9 percent,
slower than economists' forecast for a 2.4 percent decline.
Compared to the previous month, the index rose 0.8 percent, while
expectations were for a 0.2 percent increase.
After hitting a low of 128.30 against the yen at 1:35 am ET, the
pound gained. The pound-yen pair is currently trading at a 4-day
high of 129.50. The next upside target level for the pound is seen
at 129.8.
The Bank of Japan today decided to expand its loan scheme aimed
at supporting economic growth by JPY 2 trillion following the
conclusion of its March monetary policy meeting. At the same time,
the central bank kept its monetary policy unchanged.
The measure was largely aimed at tackling deflation and
establishing a new basis for economic growth, the central bank
said.
But the pound showed choppy trading against the dollar today,
moving between 1.564 and 1.566.
Looking ahead, German ZEW economic sentiment index for March is
expected at 6 am ET.
The U.S. advance retail sales for February and business
inventories for January are expected in the New York morning
session.
The Federal Open Market Committee is scheduled to begin a 1-day
meeting to discuss the near term direction of monetary policy. The
monetary policy-setting arm of the Federal Reserve is set to
release a post-meeting policy statement at 2:15 pm ET.
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