By TraderVox.com
Tradervox.com (Dublin – Despite a trade report showing the trade deficit expanded more than it had been expected, the sterling pound gained against the yen and the euro. Sentiments from the Bank of Japan Governor stating that the bank is ready to make some “powerful easing” the yen has dropped against major peers including the pound. In Europe, economic reports released yesterday failed to make any meaningful impact with the ECB Monthly Report giving nothing unexpected. The euro-zone industrial production reports were mixed counseling their impacts in the market. In addition, investors were looking at the Italian auction which failed to impress hence farcing traders to buy the sterling pound as a safe haven currency.
Technical reports on GBP/USD cross are showing that the failure to generate fresh momentum above 1.6000 and the bearish reversal which have been seen in the recent days may suggest that the market could be looking for a decline in the following sessions. A break and close lower than the next support of 1.5800 would affirm a bearish trend over the next few sessions while a close of above 1.6065 would negate this bearish outlook.
Trade report showed that the trade deficit widened in February more than it had been expected registering 8.77 billion pound trade deficit from a 7.88 billion pounds trade deficit in January. Economists were expecting a trade deficit of about 7.65 billion pounds. The increase if the pound against the euro has been explained as a result of the pound being at a better position than the euro hence investors are looking at it as a safe haven.
The pound registered an increase of 0.1 percent against the euro to trade at 82.36 pence per euro during the London session. It had earlier advanced to 82.27 pence, which is the strongest it has been since January 9. The sterling pound increased by 0.3 percent against the dollar to trade at $1.5959 while it rose by 0.5 percent against the yen to settle at 129.22 yen.
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