ND: Euro and Pound bounce up as US data increases demand for risk
FXstreet.com (Barcelona) - Euro and Pound have bounced from session lows to trim previous losses, as market sentiment improved, increasing demand for risk on the back of better than expected readings on US trade balance and Initial Jobless Claims.
Today's figures have eased concerns about the slow down on global economic recovery although, , Karen Jones, currency strategist at GFT Forex, warns about the temporary nature of such relief: "Today's stronger economic reports helped to reduce pessimism. However the dollar failed to receive a lift from the numbers which suggests that some investors are skeptical that the improvements will be temporary."
EUR/USD rebound from 1.2665 session low has extended above 1,2745 high, and the pair reached resistance level at 1.2765, which is under attack at the moment. GBP/USD recovery from 1.5375 has extended above 1.5400 to reach 1.5450 after the release of US data.
