FxPro Forex Analysis: Sterling testing multi-year lows as Election looms

The economic calendar is very quiet today which gives us a chance to reflect on a week gone by that saw a recovery in dollar strength. It was sterling and the euro that were the main losers with sterling being a stand out as GBPUSD has overnight fallen to its lowest level since June 2010, a new low since the last General Election back in May 2010 and it is likely that with less than a month to go to the next General Election, sterling will remain under pressure against the dollar. Trading at 1.4590 at the time of writing having hit a low of 1.4566, GBPUSD bears will be looking for a push down towards 1.4200.

For EURUSD we are sitting on the 1.0600 level this morning with major support seen at the twelve year low around 1.0500. With little in the way of economic data, moves in the FX markets could be limited before things build up with retail sales data from both sides of the Atlantic, as well as China, later in the week and a finale in the form of UK unemployment data on Friday.