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Forex pairs in this Article » EUR/USD, GBP/USD
FXStreet (Guatemala) - The market has been in most parts a range bound session with a common 30-60 differential in price. However, we did see some dramatics from the likes of Sterling and USD/CAD.

EUR/USD has been a play between 1.3759 and 1.3702, reaching the highs as an extension of London’s favorability for the Euro, despite there being mixed equity performances in Europe as we moved into the closing session for the pair this week. Existing Home sales for the US were disappointing allowing some follow though on the bid from the bulls.

Sterling was rather dramatic, and that’s cable for you. Traders who had been looking forward to a relaxing time into this weeks close needed to first manage the poorer UK retail sales figures disappointing at 4.3% vs 5.0 and then manage the follow though when cable dumped from above the 1.67 handle and over a series of slides, finally bottomed out just ahead of the 1.6600 mark. Sterling started to consolidate around 1.6640 by the close of play in North America. There had been chatter that a major corporate came onto the scene to hedge up some major volumes in cable which moved the market as market makers looked round to see their order books kicking in on the way down. Wakey-wakey!

USD/CAD was another mover, but the fundamentals behind the choppiness of price that was in a range of 1.1197 and 1.1090 for funds came between January CPI and December Retail Sale’s figures. Canadian Core Consumer Price Index read 1.4% vs 1.3% consensus year on year and month on month read 0.2% vs 0.1% consensus, up on previous -0.4%. This offered a boost to the Loonie although at the same time traders needed to consider the dismal retail sale data for December that came in month on month -1.8% vs -0.4% expected and 0.5% previous.

Key Headlines:

UK Retail Sales (YoY) (Jan) disappointment

Canadian Bank of Canada Consumer Price Index Core (YoY) (Jan) send loonie bid

Canadian Consumer Price Index (YoY) (Jan) underpins CAD strength

Canadian Retail Sales (MoM) (Dec) shocker

US Existing Home Sales Change (MoM) (Jan) more disappointments

Fed Bullard says rates will begin to rise late 2014
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