Feb. 4: European session
EUR/USD recovered to $1.3520, the middle Bollinger band at H4 and H1. The single currency was little affected by data released today: Italian CPI and the euro zone’s PPI came lower than expected. The number of unemployed in Spain increased after 2 months of contraction. The market is in the waiting mood with the ECB meeting and US NFP looming later this week.
GBP/USD recovered from the Asian session low of $1.6255 to $1.6340. Pound strengthened for the first time in 6 days after a report showed UK construction PMI unexpectedly accelerated in January (64.6 vs. forecast 61.6 and prior 62.1). The Bank of England starts a 2-day policy meeting tomorrow.