Forex: EUR/USD retreats from 1.2960

FXstreet.com (Barcelona) - Rumours keep on driving the price action of the single currency on Tuesday. The euro retreated now to the area of 1.2935/40 after rumours about Russian investors buying the Cypriot bank Cyprus popular were denied, giving away previous gains.

Against the backdrop of this sea of rumours, euro traders now shift their attention to the flash Consumer Confidence figures in the euro area for the month of March, ahead of the FOMC meeting due in the European evening.

EUR/USD is up 0.53% at 1.2937 with the next resistance at 1.2970 (high Mar.19) followed by 1.3009 (MA10d) and then 1.3074 (MA21d).
On the flip side, a breakdown of 1.2844 (low Mar.19) would expose 1.2827 (low Nov.22) and finally 1.2730 (low Nov.19).

Mar 20, 2013

Forex Flash: US FOMC may lift EUR/USD, Cyprus euro exit to relieve investors – TD Securities

Markets wobbled yesterday with the “worst case scenario” in Cyprus, as the government rejected plan A (deposit confiscation) without a plan B in place. Now, we have to wait but anything resembling a deal (with Russia or Europe) that avoids insolvency and a euro exit will likely be greeted with relief by investors”, wrote analysts Shaun Osborne and Greg Moore, seeing the Cypriot on the back burner today.

Forex: GBP/USD approaching daily highs after spike to 1.5043 on UK budget

After testing the 1.5150 line, the GBP/USD began to retrace its gains ahead of the publication of the UK Budget Report. The budget deficit for 2012-13 is regarded at 7.4% of GDP. 6.8% deficit in 2013-13 and 5.4% in 2014-15. The GBP/USD has spiked to 1.5043 low but it has bounced back and is approaching the daily highs again.