Forex: GBP/USD reaches 1.5600

FXstreet.com (Córdoba) - The British pound resumed its advance against the greenback, after a short-lived setback sent GBP/USD below 1.5500 in the wake of the US employment report.

GBP/USD bounced strongly from a low of 1.5479 and rose about 120 pips before stalling at 1.5600, supported by the positive market mood. At time of writing, GBP/USD is trading at 1.5590, 0.4% above its opening price.

On the upside, 1.5605 (high May 1) is immediate resistance level to overcome, followed by 1.5690 (high Feb 13). On the downside, supports are seen at 1.5479 (daily low) and 1.5440 (10-day SMA).

May 3, 2013

Forex: USD/CHF topped at 0.9400 and erases rally on NFP

The US NFP report triggered a rally to 0.9400. Capped there, the USD/CHF has then pull back to 0.9320 area, where it trades sidelined.

Forex Flash: ECB to contemplate negative rates? – BMO Capital Markets

According to Stephen Gallo at BMO Capital Markets, “Investors are not entirely sure that Mario Draghi’s comment, suggesting that the ECB is ready to cut the deposit rate to negative was an explicit attempt to weaken the EUR.” Going negative on key rates is an enormous decision, especially for the ECB, as such a move attempts to force an unnatural, behavioural shift in money market conditions and the banking system, leaving the risk that the two become even more dysfunctional over time.