The EUR/USD gained ground slightly in favor of the euro on Friday nevertheless the overall picture shows the euro has declined against the dollar for the second straight week. It is also important to take note of the disappointing German CPI data that was released on Friday giving an indication of inflation in the euro zone, which in effect was to the detriment of the euro. Today close traders and investors will be waiting in anticipation for the first estimate of the EU inflation which will be released at 9.00AM (GMT). The European Central Bank’s governing council will be meeting later in the week, the hot topic of discussion will be interest rates as to whether to keep them on hold or not. In last months meeting the European Central Bank left interest rates on hold, at that meeting the European Central Bank President Mario Draghi stated that the bank would either do nothing or take bold action should the outlook deteriorate. The financial events to look out for today are CPI Flash Estimate at 9.00am GMT and Federal Reserve Chair Janet Yellen speaks at 1.55pm GMT. Today EUR/USD has support of 1.3700 and resistance of 1.3790.
The pound moved higher against the dollar namely due to the positive outlook in the reasonably quick British economy recovery. Data released on Friday showed that the United Kingdom posted a much larger than expected Current Account deficit, however, this did not move the pairing downwards. Also released on Friday showed that U.S consumer spending rose last month, however, this in turn could not put a halt to pound gains. Today traders and investors will be paying close attention to an update of consumer credit in the U.K which is indicator which measures the total value of outstanding debt held by private consumers, such as credit card debt and auto loans. It is a month-by-month report. Traders and investors will also be scrutinizing the speech coming from Fed Chair Janet Yellen in order to identify clues in particular to future monetary policy. In addition Bank of England Governor Mark Carney will be participating in a conference at the Bank of England. The financial events to look out for today are Net Lending to Individuals m/m 8.30am GMT, Fed Chair Yellen Speaks at 1.55pm GMT and BOE Gov Carney Speaks at 5.15pm GMT. Today GBP/USD has a support of 1.6000 and a resistance of 1.6660.
The dollar rose against the Japanese yen on Friday namely due to the expected increase in sales tax which takes effect in Japan tomorrow. Data released on Monday morning namely Japanese PMI manufacturing data and Industrial Production were to a large extent very disappointing and had a detrimental effect to the yen. In contrast to the positive data that came out of the U.S consumer spending adding to the outlook that the U.S economy is slowly recovering. On a side note, after over a month of tensions around Russia’s annexation of Crimea, U.S. President Barack Obama and Russia’s Vladimir Putin finally spoke to each other on Friday, suggesting a possible diplomatic path towards ending the crisis. With geopolitical issues slightly muted, even if not fully solved, the financial markets are more likely to be directed more by global economic data and central bank directions. The financial events to look out for today is Fed Chair Yellen speech at 1.55pm GMT and Tanakan Manufacturing Index at 11.50pm GMT. Today USD/JPY has support of 102.70 and resistance of 103.00
March 31, 2014 – Forex News
Hot Asset For Today: EUR/USD
The EUR/USD gained ground slightly in favor of the euro on Friday nevertheless the overall picture shows the euro has declined against the dollar for the second straight week. It is also important to take note of the disappointing German CPI data that was released on Friday giving an indication of inflation in the euro zone, which in effect was to the detriment of the euro. Today close traders and investors will be waiting in anticipation for the first estimate of the EU inflation which will be released at 9.00AM (GMT). The European Central Bank’s governing council will be meeting later in the week, the hot topic of discussion will be interest rates as to whether to keep them on hold or not. In last months meeting the European Central Bank left interest rates on hold, at that meeting the European Central Bank President Mario Draghi stated that the bank would either do nothing or take bold action should the outlook deteriorate. The financial events to look out for today are CPI Flash Estimate at 9.00am GMT and Federal Reserve Chair Janet Yellen speaks at 1.55pm GMT. Today EUR/USD has support of 1.3700 and resistance of 1.3790.
The pound moved higher against the dollar namely due to the positive outlook in the reasonably quick British economy recovery. Data released on Friday showed that the United Kingdom posted a much larger than expected Current Account deficit, however, this did not move the pairing downwards. Also released on Friday showed that U.S consumer spending rose last month, however, this in turn could not put a halt to pound gains. Today traders and investors will be paying close attention to an update of consumer credit in the U.K which is indicator which measures the total value of outstanding debt held by private consumers, such as credit card debt and auto loans. It is a month-by-month report. Traders and investors will also be scrutinizing the speech coming from Fed Chair Janet Yellen in order to identify clues in particular to future monetary policy. In addition Bank of England Governor Mark Carney will be participating in a conference at the Bank of England. The financial events to look out for today are Net Lending to Individuals m/m 8.30am GMT, Fed Chair Yellen Speaks at 1.55pm GMT and BOE Gov Carney Speaks at 5.15pm GMT. Today GBP/USD has a support of 1.6000 and a resistance of 1.6660.
The dollar rose against the Japanese yen on Friday namely due to the expected increase in sales tax which takes effect in Japan tomorrow. Data released on Monday morning namely Japanese PMI manufacturing data and Industrial Production were to a large extent very disappointing and had a detrimental effect to the yen. In contrast to the positive data that came out of the U.S consumer spending adding to the outlook that the U.S economy is slowly recovering. On a side note, after over a month of tensions around Russia’s annexation of Crimea, U.S. President Barack Obama and Russia’s Vladimir Putin finally spoke to each other on Friday, suggesting a possible diplomatic path towards ending the crisis. With geopolitical issues slightly muted, even if not fully solved, the financial markets are more likely to be directed more by global economic data and central bank directions. The financial events to look out for today is Fed Chair Yellen speech at 1.55pm GMT and Tanakan Manufacturing Index at 11.50pm GMT. Today USD/JPY has support of 102.70 and resistance of 103.00
By Peter Thompson
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