Forex: GBP/USD trampoline at 1.5900
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GBP/USD
FXstreet.com (Barcelona) - After the US session, Moody's downgraded the French credit rating from Aaa to Aa1 and the GBPUSD followed the European sentiment, easing to 1.5891. Past the knee jerk reaction, the pair moved up to reach highs at 1.5920, only to allow a retracement back to 1.5900. More than support, the psychological level is acting as a trampoline during the London morning.
The German Producer Price Index disappointed by easing from 1.7% to 1.5%, with the monthly figure at 0.0%, instead of pointing to 0.1% growth. In Switzerland, exports (from 16.609B to 18.587B) rose more than imports (from 14.678B to 15.767B), allowing the trade surplus to widen from 1.930B to 2.2821B in October.
"GBPUSD still tries to overcome the 1.5915 October low which was probed but capped the currency pair on Monday", wrote Axel Rudolph, analyst at Commerzbank, pointing to 1.5958 (5th of November low) as next target, but to be capped by the 55 day MA (1.6061).
The German Producer Price Index disappointed by easing from 1.7% to 1.5%, with the monthly figure at 0.0%, instead of pointing to 0.1% growth. In Switzerland, exports (from 16.609B to 18.587B) rose more than imports (from 14.678B to 15.767B), allowing the trade surplus to widen from 1.930B to 2.2821B in October.
"GBPUSD still tries to overcome the 1.5915 October low which was probed but capped the currency pair on Monday", wrote Axel Rudolph, analyst at Commerzbank, pointing to 1.5958 (5th of November low) as next target, but to be capped by the 55 day MA (1.6061).
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