The British pound has broken 1.465 level yesterday reaching 1.458 before finding the support that brought it back to test 1.4777 again and it is now trying again to break this support at 1.465 again. Yesterday, UK February Manufacturing Productions which were expected to be down yearly by 14.2% and monthly by 1.5% but they have come down by lower rates by 13.8% and .9% and also Feb UK industrial productions which were expected to be down by 1.2% monthly and 12.5% yearly have come as expected yearly at 12.5% and monthly by just -1%.

These data came by tomorrow meeting of the MPC which is expected to leave the interest rate unchanged at .5%.

The single currency is still depressed by the weak retail sales of Feb which declined by 4% y/y and -.6% m/m and the market was waiting for a decline by 2.5% y/y and .3% m/m.

The Japanese yen and the greenback were supported across the broad by a risk aversion sentiment could contain the equity market. The Dow has closed down for the second day at 7790 pushing the USD lower than 100 again versus the Japanese yen and the gold could hardly get above 880$ after the sell of in the beginning of this week when it reached 864$. The trading is expected to be light helping the correction as this week long weekend after 4 weeks of gains brought the Dow above 8000 from 6555 on the 9th of last month.

Best wishes

FX Consultant

Walid Salah El Din

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