Forex Market: GBP/BGN trading outlook for February 15th

Friday's trade saw GBP/BGN within the range of 2.4973-2.5268. The pair closed at 2.5216, surging 0.84% on a daily basis. It has been the third gain in the past ten trading days and also the sharpest one since January 22nd, when it rose 1.06%. In weekly terms, GBP/BGN lost 0.86% of its value during the current week. It has been the 11th drop in the past 12 weeks and also a third consecutive one. The pair has depreciated 2.04% so far during the current month, following two succe ssive months of decline. In January GBP/BGN went down 3.09%.

No relevant macroeconomic reports and other events, which may influence GBP/BGN trading, are scheduled on Monday (February 15th).

Correlation with other currency pairs

Taking into account the week ended on February 12th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

GBP/BGN to USD/BGN (0.8440, or very strong)
GBP/BGN to USD/CHF (0.7013, or strong)
GBP/BGN to DKK/BGN (0.4626, or moderate)
GBP/BGN to USD/JPY (0.3761, or moderate)
GBP/BGN to AUD/USD (0.0334, or very weak)
GBP/BGN to GBP/USD (0.0129, or very weak)
GBP/BGN to USD/CAD (-0.2326, or weak)
GBP/BGN to CHF/BGN (-0.2401, or weak)
GBP/BGN to NZD/USD (-0.6486, or strong)
GBP/BGN to EUR/USD (-0.8249, or very strong)

1. During the examined period GBP/BGN moved almost equally in one and the same direction with USD/BGN, while moving almost equally in the opposite direction compared to EUR/USD.

2. GBP/BGN moved strongly in one and the same direction with USD/CHF during the week, while moving strongly in the opposite direction compared to NZD/USD.

3. GBP/BGN moved almost independently compared to AUD/USD and GBP/USD during the period in question. The correlation between GBP/BGN and GBP/USD was almost non-existent.

4. The correlation between GBP/BGN and USD/CAD, GBP/BGN and CHF/BGN was insignificant.