WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

London Market Wrap

Posted by Joseph Trevisani on Mar 7, 2013 8:52:00 AM



The euro rose to 1.3043 from 1.2985 (+58 points) against the dollar following the good results of the Spanish bond auction today and after rating agency Standard and Poor’s raised Portugal’s credit rating outlook. The rally to the session high of 1.3043 was aided by speculation that the European Central Bank will leave their interest rate policy unchanged. However, the rally to 1.3043 was unsustainable and met with a profit-taking correction to 1.3005 as the market awaited the results of the ECB announcement and Mario Draghi’s press conference.

Spain sold a total of 5.03 billion euro across it’s 3-year Bono, 5-year Bono and 10-year Obligaciones bonds just above the maximum 5 billion euro target set by Tesoro Publico. This eased some of the market concerns and provided the euro buoyancy in the European trading session.

The ECB had left their interest rates unchanged at 0.75 percent as widely expected. There was muted reaction to the euro rate standing at 1.3025 at 12:45GMT.


Cable rallied sharply by 80 points to 1.5070 from 1.4990 after the Bank of England Monetary Policy Committee left their interest rate unchanged at 0.5 percent and more importantly leaving the Asset Purchasing Program unchanged at 375 billion pounds. The decision was in line with most analysts forecast although there is some probabilityof a future increase of 25 billion sterling the QE program, given the 6-3 split MPC decision seen in February.

Euro sterling came under pressure and fell to 0.8640 from 0.8688 following the MPC announcement.

Chris Advincula

Market Strategist

WorldWideMarketseur resized 600


gbp resized 600

eurgbp resized 600


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!