Pound Slides Against Majors

Pound Slides Against Majors



The pound weakened on Monday as majority of European stocks fell on dismal Chinese trade data and the Fitch rating downgrade of Greece over the weekend.
Data from China's General Administration of Customs showed on Saturday that the country posted $31.48 billion trade deficit for February, compared to a $27.28 billion surplus in January, stoking worries about growth prospects in Asia's biggest economy.
Meanwhile, Fitch Ratings downgraded Greece to 'restricted default' and the International Swaps and Derivatives Association panel resolved unanimously that a Restructuring Credit Event has occurred with respect to Greece.
Greece successfully completed its debt swap agreement last week, with 85.8 percent of its private bond holders voluntarily taking part in the deal. The successful completion of the debt swap deal was the pre-condition set by the European Union and the International Monetary fund for handing over the bailout approved last month.
Eurozone finance ministers are meeting today to discuss giving final approval for Greece's second bailout. At the prior meeting on Friday, Eurogroup President Jean-Claude Juncker said Greece has implemented all measures in a satisfactory manner to receive a second bailout package.
Thus far, the U.K. FTSE 100 index slipped 0.05 percent and France's CAC-40 index fell to 0.15 percent. Meanwhile, Germany's DAX is trading green above 0.17 percent.
The pound reached 1.5613 against the US dollar around 7:00 am ET, its lowest level since January 25. The cable is presently worth 1.5635 with 1.5570 seen as the next likely support level.
The dollar firmed up after the much anticipated jobs report on Friday showed that the U.S. economy added more jobs than expected during the month of February. The economy added 227,000 jobs in February, while most economists had expected the pace of job growth to be roughly 204,000 jobs.
Extending its recent sell-off, the pound reached a 4-day low of 0.8397 against the euro around 7:00 am ET Monday. On the downside, the sterling may find target around the 0.8440 level, its 100-day simple moving average level.
The pound also reached as low as 1.4368 against the Swiss franc before holding steady around 7:00 am ET. If the pound-franc pair weakens further, likely support level is seen at 1.4350.
German wholesale price annual inflation slowed as expected to 2.6 percent in February from 3 percent in January, the Federal Statistical Office said. On a monthly basis, wholesale prices climbed only 1 percent after rising 1.2 percent in January. The rate matched consensus forecast.
The pound also depreciated by more than 1 percent to a 4-day low of 128.41 against the yen by 7:00 am ET from Friday's 1-week high of 129.78. The next downside target for the pair could be its 20-day simple moving average level at 127.20.
Japan's consumer confidence weakened unexpectedly in February, monthly survey data from the Cabinet Office revealed today. Due to the weakness in income growth and employment, the consumer sentiment index came in at 39.5, down from 40 a month ago. Economists were expecting the reading to rise to 40.5.
Japan's core machine orders were up a seasonally adjusted 3.4 percent on month in January, beating forecasts for an increase of 2.3 percent following the 7.1 percent contraction in December.
Also, an index measuring prices for corporate goods in Japan was up 0.2 percent in February compared to the previous month. That matched forecasts following the 0.1 percent contraction in January.






More FOREX-news on pages InstaForex.Com

[url=http://tinyurl.com/6mfbg7l][/u