Forex headlines for April 26, 2013:
- US Q1 GDP 2.5% vs 3.0% exp
- U Mich April consumer sentiment 76.4 vs 73.2 exp
- Spain revises it’s 2013 forecast to -1.3% from -0.5%
- Spain likely to be given extension to reduce deficit
- Schaeuble: Debt mutualization would lead to a German downgrade
- Canadian Feb budget surplus of C$1.56bn
- Gold down $10 to $1458 after touching $1485
- S&P 500 down 0.2% to 1582
- JPY leads big time, antipodeans lag
- On the week, GBP leads and CHF lags
USD/JPY began slipping after the GDP numbers and it quickly turned into a rush to the exits that finally stalled ahead of the 21-day moving average at 97.57 after starting the day 200 pips higher. Big bids are cited around 97.50 with more down at 97.20 but with Japan off on Monday for the beginning of Golden Week, things could start to get wonky.
EUR/USD poked through 1.3000 to 1.2991, which was just above yesterday’s low of 1.2989. It created a double-bottom of sorts and the pair jumped 35 pips after the GDP release then settled around 1.3025 for the weekend.
The lack of profit-taking in GBP/USD longs ahead of the weekend tells you which side of the market speculators are on. Cable rallied to 1.5499 after the US GDP numbers and wasn’t able to break the big figure but it didn’t fall much either and closes the week at 1.5477 and above the 38.2% retracement of the Jan-March fall. Who would have believed that +0.3% GDP would get the market so excited.
EUR/CHF slumped as low as 1.2250 but bidders were evident there and the pair wrapped up a stellar week at 1.2285.
I want to deeply thank everyone for all the support this week. The changes here have been a roller-coaster for me and there are still many improvements to come, thanks for all the feedback.