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7 Mar 2013
Forex Flash: GBP/USD adds to BoE bounce on Draghi speech
GBP/USD has posted a daily high at 1.5082 following the the BoE and ECB decisions to hold policy and as ECB President conducts his Press Conference today.
The pair has found some short term resistance at the hourly 55MA, with RSI at 61, but now looks receptive to continuing its move higher. In his press conference, Draghi reissued largely similar rhetoric to previous months, commenting that inflation expectations remain anchored and economic growth is expected to pick up later in the year, despite issuing contradictory growth forecast downgrades. In the press conference, Draghi made a joke about the reactionary nature of markets, noting the “angst of the week”. In response to a later question, he added that “People underestimate amount of political capital that European leaders have invested in the euro", indicating that it was in individual nations interests to fully enact reforms.
The pair has found some short term resistance at the hourly 55MA, with RSI at 61, but now looks receptive to continuing its move higher. In his press conference, Draghi reissued largely similar rhetoric to previous months, commenting that inflation expectations remain anchored and economic growth is expected to pick up later in the year, despite issuing contradictory growth forecast downgrades. In the press conference, Draghi made a joke about the reactionary nature of markets, noting the “angst of the week”. In response to a later question, he added that “People underestimate amount of political capital that European leaders have invested in the euro", indicating that it was in individual nations interests to fully enact reforms.