Major Pairs Analysis: GBP Rises Against EUR - April 23, 2013
ICM Brokers | Apr 23, 2013 03:51AM ET
EUR/USD
Euro-area consumer confidence increased unexpectedly in April, adding to signs the currency bloc will emerge from a recession in the second quarter. Record unemployment of 12 percent and spending cuts across the euro area have eroded consumer spending power, even as inflation has fallen below the European Central Bank’s 2 percent ceiling for the first time in OVER two years. Retail sales fell 0.3 percent in February, the last month for which data are available. The euro-area economy has contracted for five quarters and is forecast to shrink 0.1 percent in the first three months of 2013 before returning to growth. the 17-nation currency was traded at $1.3045.
GBP/USD
The pound rose against the euro following three weeks of losses. This comes before the release this week of a U.K. government report that economists say will show the U.K. avoided falling into a triple-dip recession last quarter. Chancellor George Osborne will unveil the second phase of a strategy to boost loans for small companies and consumers. Gilts gained even after Fitch Ratings cut Britain’s credit rating last week. The Office for National Statistics will release its report on gross domestic product on Friday. The pound gained 0.2 percent to 85.49 pence per euro. The Sterling rose 0.2 percent to $1.5263 after falling to $1.5204, the weakest level since April 5.
USD/JPY
The yen rose versus all of its major peers after a private report signaled a slowdown in Chinese manufacturing, underscoring concern the largest Asian economy is faltering, boosting demand for refuge assets. The yen rose 0.5 percent to 98.70 per dollar, after gaining 0.3 percent yesterday.
USD/CAD
The Canadian dollar rose against the majority of its 16 most-traded peers as crude oil, the country’s largest export, rose for a third day and traders bet the country would be less affected by falling metal prices. The currency strengthened versus the dollars of its fellow commodity exporters, Australia and South Africa on speculation Canada will be least hurt by recent weakness in metals. The loonie was little changed at C$1.0256 per U.S. dollar.
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