Forex: GBP/USD testing the 1.5000 level ahead of BoE

The GBP/USD has moved lower Thursday, ahead of the BoE announcements expected later today. The pair has managed to hug the 1.5000 level during European breaking slightly above and below the key region, never straying too far. At the time of writing, the pair is testing 1.5000, incurring a loss of -0.14%.

Investors will be eying the BoE Interest Rate decision (March 7) later today, scheduled for 12:00 GMT that is reiterating 0.5% rates. In addition, the BoE Asset Purchase Facility should help move the GBP/USD with a consensus of £375B.

According to Research Analyst Gareth Berry at UBS, “We remain bearish on the GBP/USD as the pair extends weakness posting a new corrective low. Support is at 1.4949 ahead of 1.4687. Resistance is at 1.5110 should hold any upside.”

Mar 7, 2013

Forex Flash: AUD inflows cooling amidst saturation – UBS

The Australian dollar has benefitted enormously from portfolio inflows since the Global Financial Crisis receded in 2009. The currency got a second wind when the Eurozone debt crisis flared up, which triggered a cascade of sovereign rating downgrades and enhanced the appeal of the handful of remaining AAA sovereigns. However, these inflows are now starting to cool somewhat, given that the foreign holdings of commonwealth bonds (issued by the Federal government) have already reached saturation point.

Strong demand at Spanish debt auction

The Spanish Tesoro Público held a debt auction on Thursday during which it sold a total of 5.039 billion euros worth of 2- and 5- month and 10-year Letras, at the top end of the maximum target of 4-5 billion euros.