The pair settled the week with minor losses but in close proximity to the 1.3000 level as market participants remained hopeful that Spain will soon request a full scale bailout. S&P ratings agency downgraded Spanish sovereign rating, which failed to push the government into action. There is still plenty of uncertainty surrounding Greece, which is yet to agree on spending cuts which are needed in order to receive the next bailout tranche. In terms of technical levels, supports are see at 1.2880/27 and then at the 200DMA line at 1.2823. On the other hand, resistance levels are seen at 1.3035/72 and then at 1.3112.
The pair trended in tandem with EUR/USD for much of week as market participants continued to speculate as to whether or not Spain will finally give in to market pressure and seek bailout. In terms of UK related commentary, the latest KPMG/REC report on permanent placements showed a slight improvement in September rising to 49.7 from 48.4. In other data, the headline Lloyds employment confidence reading for September came in at -49 (Prev. -43), however analysts did note that the job security component eased to its lowest reading in almost three years. In terms of technical levels, supports are seen at the 21DMA lower Bollinger level at 1.5982 and then at the 55DMA line at 1.5927. On the other hand, resistance levels are seen at the 21DMA line at 1.6149, 1.6218 and then at 1.6273.
The pair settled the week little changed, as the focus remained on the Eurozone sovereign debt crisis, where the indebted Spain continued to avoid requesting a full scale bailout. The spat between China and Japan undermined the currency to a certain extent, however losses were capped due to the fact that there is always a probability of more policy easing by the BoJ. In terms of technical levels, supports are seen at 77.79/44 and then at 77.23. On the other hand, resistance levels are seen at 78.72/88 and then at 79.00.