There is not much news to report on the currency market. The performance of both major currency pairs showed only little consistency Thursday, although we saw a slight shift towards the U.S. dollar. However, any attempts to sell both euro and cable have not been paid off. The unsteady fluctuations can be attributed to risk-averse investors who stayed at the sideline as market-moving data is lacking.
The gathering of the four Federal Reserve chiefs Janet Yellen, Ben S. Bernanke, Alan Greenspan and Paul Volcker did not deliver any new insights into the Fed’s guidance. Yellen said “We are coming close to our assigned congressional goal of maximum employment”, even though she still sees some slack remaining in the U.S. labor market.
With no market-moving news we expect both currency pairs to trade sideways within the frequently discussed price levels. The only piece of economic data scheduled for release today will be U.K. Industrial and Manufacturing Production numbers (8:30 GMT). If data comes in weaker than forecast, the pound could drop below its current support at 1.4045. The focus will then shift to the 1.40-barrier and in case of a break below 1.3985 GBP could make a move towards 1.3920. Any pullbacks, however, could be limited until 1.4110 and 1.4150.
Have a nice weekend.
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