EUR/GBP Technical Analysis

– The euro was slightly lower against the dollar on Thursday, dipping after manufacturing data out of both Germany and the eurozone as a whole came in weaker than expected, stoking concerns that the European economy may be cooling.Weak U.S. housing data gave the euro some support, however.In Asian trading on Thursday, EUR/USD hit 1.3247, down 0.02%, gaining from a session low of 1.3244 and off from a high of 1.3256.The pair was likely to test support at 1.3187, Tuesday's low, and resistance at 1.3293, Tuesday's high.London-based Markit Economics reported its composite purchasing manager index for both service and manufacturing sectors across the eurozone dropped to 49.7 in February from 50.4 in January.German numbers disappointed as well, and both figures primed fears that if both service and manufacturing sectors are producing less, clouds may be building on Europe's horizon.Meanwhile, in Greece, Fitch Ratings downgraded the country's debt ratings to C from CCC after the country got the green light from...

– Natural gas prices dropped again Wednesday, as forecasts of nonstop mild winter weather in the U.S. dampened sentiment on the heating fuel ahead of Thursday’s report on U.S. natural gas supplies. On the New York Mercantile Exchange, natural gas futures for April delivery traded at USD2.75 per million British thermal units during U.S. morning trade, tumbling 1.5%. It earlier fell by as much as 1.95% to trade at a session low USD2.719 per BTU. Natural gas prices came under selling pressure after the Commodity Weather Group said warmer-than-normal temperature was forecast for the next two weeks across most parts of the U.S. Midwest, Northeast and South. According to the firm, temperatures in the Northeast may be 8 degrees above normal throughout the period. For the eastern U.S. as whole, temperatures may be 5 degrees higher than normal. Weather service provider AccuWeather offered a similar outlook. The company expects temperatures in the U.S. Northeast and...

– Gold futures traded higher Wednesday despite a strong U.S dollar on weak euro zone manufacturing data, while concerns over Greece’s financial woes persisted. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,771.05 a troy ounce during late U.S. trade, climbing 0.71%. It earlier fell by as much as 0.55% to trade at a session low USD1,750.85 a troy ounce. Futures were likely to find support at USD1,732.35 a troy ounce, Tuesday’s low and technical resistance exists at USD1,765.85, the high from February 3. Gold gained despite as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbing 0.16% to trade at 79.30. A stronger U.S. dollar usually weighs on gold, as it decreases the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Preliminary data...

– Crude oil futures traded lower Wednesday, but remained close to the previous day’s nine-month high as tension between Iran and the West overshadowed concerns over a slowdown in euro zone manufacturing activity and sustained fears over Greece. On the New York Mercantile Exchange, light sweet crude futures for April settlement traded at USD105.94 a barrel during U.S. afternoon trade, giving back 0.30%. The April contract traded in a range between USD105.63, the daily low and a session high of USD106.41. On Tuesday, prices rose to USD106.46 a barrel, the highest since May of last year. Oil traders continued to monitor tensions between Tehran and Western powers after the International Atomic Energy Agency said Iran refused permission to visit the Parchin military base during two days of talks that ended Tuesday. In addition Tuesday, the leader of Iran’s state oil company said that if other European nations continued “hostile acts” it would stop exporting oil to them as well, after...

– European stocks closed lower Wednesday, as worse than expected service and manufacturing data combined with additional Greek rating cuts weighed on equities . Near the close of European trade, the EURO STOXX 50 fell 0.89%, France's CAC 40 gave back 0.52%, while Germany’s DAX dropped 0.93%. Meanwhile, in the U.K. the FTSE 100 dipped 0.20%. The bearish sentiment was stroked when London based, Markit Economics said its composite purchasing manager index for both service and manufacturing dropped to 49.7 in February from a reading of 50.4 in January in the euro zone. This contraction of service and manufacturing output signals additional struggles ahead for the euro zone region. Another report showed German services and manufacturing expansion surprisingly slowed in February further adding to the equity negative session. Meanwhile, in Greece, Fitch Rating slashed the island nations credit grade two levels to C from CCC after the country obtained approval to proceed with the bond exchange to reduce its...

– Crude oil futures swung between gains and losses on Wednesday, but remained close to the previous day’s nine-month high as simmering tension between Iran and the West overshadowed concerns over a slowdown euro zone manufacturing activity and sustained fears over Greece.On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD106.14 a barrel during U.S. morning trade, easing down 0.11%.The April contract traded in a range between USD105.63, the daily low and a session high of USD106.41. On Tuesday, prices rose to USD106.46 a barrel, the highest since May of last year.Oil traders continued to monitor tensions between Tehran and Western powers after the International Atomic Energy Agency said Iran refused permission to visit the Parchin military base during two days of talks that ended Tuesday.Also Tuesday, the head of Iran’s state oil company said that if other European nations continued “hostile acts” it would stop exporting oil to them as well, after...

– The pound extended losses against the U.S. dollar on Wednesday, falling to a six-day low following the release of the minutes of the Bank of England’s latest meeting while concerns over Greece’s debt burden persisted. GBP/USD hit 1.5649 during U.S. morning trade, the pair’s lowest since February 14; the pair subsequently consolidated at 1.5670, tumbling 0.69%.Cable was likely to find short-term support at 1.5644, the low of February 14 and resistance at 1.5813, the session high.Sterling weakened broadly after the minutes of the BoE’s February meeting showed that two policymakers supported a GBP75 billion increase, while the remainder of the monetary policy committee voted in favor of a GBP50 billion increase in the bank's asset purchase program.The majority of policymakers believed that an increase of more than GBP50 billion "risked sending a signal that the Committee thought the economic situation was weaker than it was."The central bank’s February inflation report predicted that growth would improve later in the year...

– Natural gas prices were down on Wednesday, as forecasts of mild late-winter weather in the U.S. dampened sentiment on the heating fuel ahead of Thursday’s closely-watched report on U.S. natural gas supplies. On the New York Mercantile Exchange, natural gas futures for April delivery traded at USD2.732 per million British thermal units during U.S. morning trade, tumbling 1.5%. It earlier fell by as much as 1.95% to trade at a session low USD2.719 per million British thermal units. Natural gas prices came under selling pressure after the Commodity Weather Group said warmer-than-normal temperature was forecast for the next two weeks across most parts of the U.S. Midwest, Northeast and South. According to the firm, temperatures in the Northeast may be 8 degrees above normal throughout the period. For the eastern U.S. as whole, temperatures may be 5 degrees higher than normal.Weather service provider AccuWeather offered a similar outlook. The company expects temperatures in the U.S. Northeast and...

– The U.S. dollar climbed above parity against its Canadian counterpart on Wednesday for the first time in four sessions as ongoing concerns over the euro zone and soft Chinese manufacturing data weighed on demand for higher-yielding assets.USD/CAD hit 1.0013 during early U.S. trade, the pair’s highest since February 16; the pair subsequently consolidated at 1.0007, gaining 0.39%.The pair was likely to find support at 0.9924, Tuesday’s low and resistance at 1.0050, the high of February 16.Market sentiment remained soft amid continued uncertainty over whether a second EUR130 billion bailout for Greece will be enough to resolve the country’s fiscal woes as the economic situation continues to deteriorate.Sentiment was also hit after data showed that manufacturing activity in the euro zone improved less-than-expected in February, while service sector activity contracted unexpectedly, underlining concerns over the impact of the region’s debt crisis on the economic outlook.Earlier Wednesday, preliminary data showed that China’s manufacturing sector contracting for a fourth straight month in...

– U.S. stocks edged lower on Tuesday, as investors were eyeing U.S. existing home sales data while sentiment weakened after downbeat euro zone data and amid sustained concerns over Greece’s financial woes.During early U.S. trade, the Dow Jones Industrial Average edged down 0.04%, the S&P 500 index added fell 0.07%, while the Nasdaq Composite index eased 0.08%.Sentiment was hit after preliminary data showed earlier that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity in the euro zone unexpectedly contracted. Meanwhile, investors remained cautious amid uncertainty over Greece’s ability to implement the terms of a EUR130 billion bailout package approved by euro zone finance ministers on Tuesday.In the tech sector, Apple shares fell 0.42% after the company’s price target was raised to USD600 at Credit Suisse, who also reiterated its "outperform" rating on the tech giant.In addition, a Shanghai court began hearing on Wednesday a case...