Forex: GBP/USD erasing daily gains after US data

The GBP/USD has been erasing its daily gains little before the release of US data. While the annualized GDP Q4 growth was even worse than expected, of 0.1% instead of 0.5%, quarterly data rose 0.9% instead of 0.6%. That and improving jobless claims send the pair down to 1.5159, almost to the opening price of 1.5157, as the NY session started.

More greenback strength is being felt after the US chicago PMI: it was expected to ease from 55.6 to 54.3 in February, but actual data surprised investors by increasing the expansionary pace to 56.8.

“The GBP/USD currency pair is trying to start the third ascending impulse”, wrote Roboforex.com analyst Igor Sayadov. “I think today the price may finish this impulse near the level of 1.5230 and then return to the level of 1.5130”, he added.

Feb 28, 2013

Dijsselbloem suggest extending bailout maturities for Ireland and Portugal

Eurogroup head Jeroen Dijsselbloem told Dutch lawmakers on Thursday that Eurozone finance ministers are considering whether to grant rescue loan extensions to Ireland and Portugal in order to facilitate their return to market funding.

American equity markets barely changed after GDP data

The US Stock market experienced a modestly positive opening Thursday, after the release of several US indicators. In the United States, Gross Domestic Product Annualized (Q4) came in at just +0.1%, against expectations of +0.05%. In addition, the Gross Domestic Product Price Index (Q4) grew +0.9%, vs. estimates of only +0.6%. Initial Jobless Claims (February 22) were reported at 344K, against a projected figure of 360K. Finally, Personal Consumption Expenditures Prices (QoQ) have grown +1.5% in the fourth quarter, compared with +1.2% previously.