Pound ticks down after BoE's rate decisions, euro drops on Spain's downgrade

By @ibtimes on

The pound was little changed after the BoE's rate decision while the euro plummeted after Moody's Investors Services downgraded Spain's credit rating by one-notch.

The sterling ticked down after the decision which did not include any surprise as policy makers opted to leave both interest rate and APF unchanged at 0.50% and 200 billion pounds respectively, in line with median estimates.

The British pound versus the dollar pair fell on the daily charts and smaller time frames, yet it found support at 1.6140, where it is currently trading.

The day's high was recorded at 1.6212 and lowest point was 1.6120, while the trading range for today is among the key support at 1.6000 and the key resistance at 1.6345.

Moving to the euro/dollar pair, the euro fell to a low of 1.3803 after the news telling that Moody's Investor Service downgraded Spain's rating to Aa1 with negative outlook on higher-than-expected bank restructuring which may reach between 40 and 50 billion euros compared with the anticipated 20 billion euros.

Currently, the pair is trading at 1.3835 after recording a high of 1.3925 after falling from resistance at 1.3890, whereas the trading range for today is among the key support at 1.3775 and the key resistance at 1.4100.

With regard to the dollar-yen pair, it rose for the third day as the breakout of resistance at 82.65 paved the way for the pair to rise to 89.93, after touching a high of 82.97 and a low of 82.68.

The trading range for today is among the key support at 81.65 and the key resistance at 83.70.

On the other hand, the dollar strengthened against a basket of major currencies as it surged to a high of 77.13 compared with the day's opening at 76.68, as depicted by the dollar index gauge, ahead of the release of US retail sales and confidence data.

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