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Forex News: Sterling Continues to Erase Losses as Euro Fails to Find a Spark

Forex News: Sterling Continues to Erase Losses as Euro Fails to Find a Spark

Benjamin Spier, Technical Strategist

The British Pound continued its rally higher today, apparently correcting some of the losses made in the 600 point decline that started at the beginning of the year.

The GBP/USD rally began when UK Nationwide House Prices were reported 0.5% higher in January, which was better than expectations for a 0.2% rise in house prices. Cable traders brought the currency 40 points above the 1.5800 line, and the pair is trading around 1.5816 at the time of this writing. A 5-month low recently set at 1.5674 could now provide support, while a broken support at 1.5840 could now provide resistance.

In Switzerland, the SNB released its fourth quarter foreign currency holdings. The SNB said Euro holdings increased from 48% to 49%, while the Yen holdings dropped from 9% to 8%. US Dollar holdings were unchanged at 28%.

In Germany, economic releases told two different stories about the economy. Retail sales dropped by a record amount in December, while a record number of Germans found work in January. However, neither release had significant effect on Euro price action in Forex markets.

Also in the Euro-zone, Greece retail sales dropped 16.6% in November from a year earlier, which is better than the 17.1% decline in October.

Later today, the Canadian GDP for November will be released at 13:30 GMT, 0.2% economic growth is expected.

GBPUSD Daily: January 31, 2013

Sterling_Continues_to_Erase_Losses_as_Euro_Fails_to_Find_a_Spark_body_gbpusd.png, Forex News: Sterling Continues to Erase Losses as Euro Fails to Find a Spark

Chart created by Benjamin Spier using Marketscope 2.0

--- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.