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27 Feb 2013
Forex: GBP/USD calm after BoE's Bean inflation comment
The GBP/USD spiked higher to 1.5164 as investors cheered EMU confidence data, but 1.5140 is still offering resistance. Worthy of reading is BoE's Bean comments that he is sensible to review UK inflation target. The pair remains little above from the opening price.
Earlier, annualized UK 2012 Q4 GDP growth was revised higher from 0.0% to +0.3% but the quarterly figure came in at -0.3% as forecasted. Total Business Investment contracted -1.2% (QoQ), easing from 5.4% to 0.4% (YoY).
“Near-term studies are negative and see potential for further weakness towards initial 1.5000 target are likely”, wrote Windsor Brokers analyst Slobodan Drvenica. “Upside break above initial 1.5218 barrier, is required to give initial signal, while regain of 1.5300 zone, would sideline near-term bears”, he added.
Earlier, annualized UK 2012 Q4 GDP growth was revised higher from 0.0% to +0.3% but the quarterly figure came in at -0.3% as forecasted. Total Business Investment contracted -1.2% (QoQ), easing from 5.4% to 0.4% (YoY).
“Near-term studies are negative and see potential for further weakness towards initial 1.5000 target are likely”, wrote Windsor Brokers analyst Slobodan Drvenica. “Upside break above initial 1.5218 barrier, is required to give initial signal, while regain of 1.5300 zone, would sideline near-term bears”, he added.