1
 

Forex - GBP/USD erases gains after ECB conference

By Investing.com  |  Forex News  |  Dec 06, 2012 03:39PM GMT  |   Add a Comment
 
AA
+
-
Investing.com - The pound erased gains against the U.S. dollar on Thursday, following downbeat comments by European Central Bank President Mario Draghi and after the Bank of England left its monetary policy unchanged.

Forex - GBP/USD erases gains after ECB conference
GBP/USD pulled away from 1.6128, the pair's highest since December 4, to hit 1.6080 during U.S. morning trade, slipping 0.10%.

Cable was likely to find support at 1.6021, the low of December 3 and resistance at 1.6134, the high of November 2.

ECB President Draghi said the bank now expects the euro zone economy to contract by between 0.4% and 0.6% this year and to shrink by 0.3% to 0.9% in 2013. The ECB expects the euro zone economy to return to growth only in 2014, expanding between 0.2% and 2.2%.

The central bank also cut the inflation outlook to 2.5% in 2012 and 1.1% to 2.1% in 2013 and left rates unchanged at 0.75%, in a widely expected decision.

Earlier in the day, the BoE kept interest rates on hold at 0.5% and left the size of its asset purchase program unchanged at GBP375 billion, in a widely anticipated decision.

The announcement came after official data showed that the U.K. trade deficit widened to GBP9.5 billion in October from GBP8.4 billion the previous month as export demand fell.

Sentiment on the pound remained fragile after Chancellor George Osborne said Wednesday that government forecasts showed that the U.K. would miss a key deficit reduction total, prompting ratings agency Fitch to warn that Britain could lose its triple-A rating.

The pound was higher against the euro with EUR/GBP dropping 0.48%, to hit 0.8079.

Also Thursday, the U.S. Department of Labor said the number of people who filed for unemployment assistance last week fell to 370,000 from 395,000 in the previous week, better than analysts’ forecasts for a decline to 380,000.

Jobless claims for the preceding week were revised up to 395,000 from a previously reported 393,000.



Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Dollar mixed to lower on U.S. home sales figures
By 
Investing.com
 - Apr 23, 2014
USD/JPY slides on soft U.S. home sales figures
By 
Investing.com
 - Apr 23, 2014
EUR/USD gains on upbeat European factory barometer
By 
Investing.com
 - Apr 23, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

EUR/GBP
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg