The Euro’s rally, which pushed the single currency to its highest level in more than seven weeks, stalled on Friday as market sentiments towards the Euro remained cautious and some traders bet that its recent upswing was too quick. After hitting a high of $1.2723 on Friday, the pair slipped to close at $1.2637 – up 1.56% from the beginning on the week.
The EUR/USD remained under selling pressure this morning. After slipping briefly below the $1.26 mark, the pair has since recovered; however, the key going forward is whether the pair can remain above its $1.2550 support level. If the Euro slips below that key level, it could trigger sell stops which could in turn cause a drop to $1.2450.
The Pound slipped below its $1.5075-$1.5275 trading range last week, as investors began to lose patients with the currency following a weaker-than-expected U.K. home price data and the Bank of England’s decision to leave interest rates unchanged at 0.50%. The Sterling closed on Friday at $1.5059, its lowest price since July 1st, and down 0.63% from the beginning of the week.
This morning, Britain is scheduled to publish its Final GDP figure for the first quarter of 2010. The initial GDP released showed a small 0.1% growth, which was later revised to 0.3%. The final GDP figure is expected to confirm this latest upwards revision; however if the number is worse than predicted, investors could see additional selling pressure take place today.
The AUD/USD tumbled from its highest level in nearly three weeks as peculations grew over the pair’s rapid rise. Last week, the Aussie stuck a 9-day high against the U.S Dollar amid a better than expected Australian employment rate, wider than anticipated trade surplus and a strong rally in global commodity prices. The Australian Dollar slipped to 0.8733 this morning, down 0.5% from last week’s close of 0.8776. The pair rose 4.3% over the course of last week.
Written by Finexo.com