Filed Under:
Forex pairs in this Article » EUR/USD
FXstreet.com (San Francisco) - Thursday won't pass to the history as the biggest day in financial markets, but certainly economic data reinforced the sensation that the status quo, including QE in the US, is here to stay.

Investors switched sentiment about China as factory data showed good results and the Markit PMI reported weaker than expected US shape in October. Stocks recovered its mojo and the USD remained under pressure.

Fitch cut 2014 Chinese GDP forecast to 7.0% from 7.5%, but also affirmed Finland AAA rating while saying the Eurozone is expected to improve its growth performance in 2014. Meanwhile, BoE's carney reaffirmed that he does believe the UK will do even better in the 2013 second half, adding another hawkish factor to the Sterling.

The EUR/USD extended advance above the 1.3800 mark after Wednesday's consolidation day. The pair traded as high as 1.3825 and closed the day just at 1.3800. "In the 4 hours chart price stands above a still bullish 20 SMA, yet indicators lose upward potential and turn slightly south in positive territory," FXstreet.com's chief analyst Valeria Bednarik commented in a recent report. "Nevertheless, market sentiment is strongly bullish in the pair, and there’s little to do against it these days."

The GBP/USD recovered the half of the Wednesday's losses as the pair traded higher from 1.6140 to trade above 1.6200 where the Cable is pricing now. With a congestion zone in between 1.6225 and 1.6255, the cable looks flat in the short term. IN the long picture however pair owns bullish tone, especially above the 1.6120 support.

Main headlines in the American session:

US: Initial Jobless Claims fell to 350K

US: Trade deficit rose to $38.80 billion in August

US: Markit Manufacturing PMI fell to 51.1 in October

Citi forecasts Greek devastation, unstoppable debt spirals in Italy and Portugal

Fitch affirms Finland rating at AAA and sees 1% growth in 2014

Carney expects second half of 2013 to be stronger than first half

Fitch lowers global GDP forecast a touch; China cut the most

Sentiment about China changes and Wall Street rocks again
comments powered by Disqus
Trading Center