European Bureaucrats Are Back To The Business - 18.10.2012
Thursday trading session is plenty of important events and economic releases. First of all, we note the beginning of 2-days summit of the EU leaders where the financial aid plans for Spain are to be discussed, as same as appropriation of the next tranche of aid for Greece. Yield on 10-year Spanish bonds dropped significantly in recent days, reflecting investor confidence in coming to acceptable agreements. In this regard, the attention should paid to the current placement of 3-years and 10-year bonds of Spain (9:30 GMT), which will influence a short-term dynamics of the euro.
Besides the news coming from Europe we expect Retail Sales in the UK, which are expected to show an increase due to effect of the Olympic Games. The GBP/USD currency pair came closely to the key trend resistance that makes it most profitable for trading in the nearest days.
Since the beginning of American trading session, the manufacturing PMI from FRB Philadelphia (14:00 GMT) are the most important data. It is forecasted that the indicator value will turn out positive – first time in 6 months.
GBP/USD, 4-hours chartGBP/USD, Intraday chart