EUR/USDUSD/JPYGBP/USDUSD/CHF
1.373597.851.56151.127
Resistance1.372597.71.55751.122
1.36796.71.55251.1165
1.353595.31.5431.104
Support1.3425951.5351.098
1.340594.551.52951.087

Sterling rose against other major currencies on Tuesday, hitting its highest levels this year against the dollar as pessimism about Britain's economy and financial sector eased. A rise in UK share prices buoyed the pound, with London's FTSE index up around 1 percent. Sterling climbed as high as $1.5510, touching its strongest level since mid-December. Banks led stock gains after a source said Britain had held talks with investors to gauge their interest in buying its stakes in part-nationalized lenders. "The global rise in financial market confidence is beginning to have a more notable impact on the pound," said Derek Halpenny, European head of global currency research at Bank of Tokyo-Mitsubishi UFJ in London. The GBP/USD is currently trading $1.5490 as of 8:50am, London Time.

The yen rose versus all 16 of the most-traded currencies after Japan reported that the world’s second-largest economy shrank at a record pace and Australian data showed consumer confidence fell. The euro slid against the dollar after a German report showed producer prices fell at the fastest rate in almost 22 years. Indonesia’s rupiah fell the most in a month as the global slump damped appetite for emerging-market assets. “There’s no doubt that Japan’s GDP figures are the worst ever, so it’s too early to say the economy has bottomed out,” said Toshihiko Sakai, head of trading for foreign exchange and financial products in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s largest bank. “The yen and the dollar are likely to be bought.” The USD/JPY is currently trading at 96.00 as of 8:58am, London Time.

The euro may fall to three-month low against the British pound should the currency drop below so- called support between 87.65 pence and 87.85 pence, Citigroup Inc. said, citing trading patterns. Support at 87.85 pence represents an ascending trend line that connects the lows of Feb. 10 and May 7, while the 87.65 pence level is the May 7 low, based on Citigroup’s chart. Support is where buy orders may be clustered. The euro-pound is “now testing a strong support between 87.65 and 87.85, which has been sticky in the past,” New York- based Tom Fitzpatrick and London-based Shyam Devani, wrote in a research note yesterday. “A break below here would open up for a test of the much more significant support in the 86.35-86.75 area.” The EUR/GBP is currently trading at 0.8795 as of 9:01am, London time.

Daily Analysis


Today's Economic Events

Time Event Currency Period Previous Forecast Significance
18:00FOMC Meeting MinutesUSD3
14:30Crude Oil InventoriesUSD-4.7M2
12:30Leading Index m/mCADApr-1.30%1
11:00Core CPI m/mCADApr0.30%0.10%3
11:00CPI m/mCADApr0.20%0.20%2
9:00ZEWCHFMay-27.72
8:30MPC Meeting MinutesGBP3