WHETHER TODAYS US DATA WILL MATTER in impacting the already accelerating FX flows may be uncertain as deteriorating risk appetite is already testing/breaching key technical levels in EURUSD and GBPUSD. See link for todays US releases on retail sales, industrial production and consumer sentiment http://bit.ly/ 5pdFAN The ensuing 2-day recovery in EURGBP to 0.86 means that GBPUSD has underperformed EURUSD in recent days despite the breach to new 14 month lows in EURUSD. EURGBP 2-hr chart probes the trendline support of 0.8560, a break of which to call up 0.8520 on further stochastic deterioration. This could mean renewed declines in EURUSD towards $1.2455 and stabilizing GBPUSD towards $1.4620. Should retail sales decline from the prior month as is expected in the calendar, investors will have very little reason to build on risk and lift the S&P500 and Dow-30 past the lower highs pattern.
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