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13 Mar 2013
Forex Flash: Pound stays vulnerable - BTMU
Derek Halpenny of the Bank of Tokyo Mitsubishi UFJ notes that as expected, GBP weaked following weaker than expected Industrial Production figures in the UK.
He sees that it leaves GBP vulnerable but yesterday was a test for the pound and although it feel in response to the 1.5% drop in manufacturing in January, it then recovered, suggesting much of the bad news is now priced in the pound. Further he adds, “The euro also continues to be well supported above the 1.3000 level and the performance of EUR/USD, GBP/USD and USD/JPY could be a signal that the dollar is about to take a breather after a period of solid gains.”
He sees that it leaves GBP vulnerable but yesterday was a test for the pound and although it feel in response to the 1.5% drop in manufacturing in January, it then recovered, suggesting much of the bad news is now priced in the pound. Further he adds, “The euro also continues to be well supported above the 1.3000 level and the performance of EUR/USD, GBP/USD and USD/JPY could be a signal that the dollar is about to take a breather after a period of solid gains.”