The EUR/USD has been rising since yesterday when European Central Bank Vice President Benoit Coeure mentioned that he did not think deflation was on the horizon fro the Eurozone. This statement renewed investor confidence in the euro, helping the pair higher. In addition, worse than expected China may also be inadvertently helping the EUR/USD’s rise as many people view trouble in China as foreshadowing trouble in America. All in all, despite upward pressure, the pair is likely to range at this point in anticipation of the ECB Monthly report coming out at 9:00 GMT. Depending on what is published, the pair may continue upward later. Look for support at 1.3830 and resistance at 1.4000.
The USD/JPY has gone down a little earlier due to worse than expected Chinese Fixed Asset Investment and Industrial Production data. Especially in Asia, the yen is viewed as a safe haven asset and traders will often flee to it in the event of a crisis. In this case, the bad Chinese data underscores preexisting anxiety about the prospects of the world’s second largest economy – causing investors to seek safety in the yen and pushing the USD/JPY down. At the moment, the pair is retracing some of its losses and may do so for a little bit longer. Please note, however, that the pressure remains downward. Pay attention to the US Core retail Sales data coming out at 12:30 GMT and the BoJ Monetary Policy Meeting Minutes coming out at 23:50 GMT. Look for support at 102.50 and resistance at 103.40.
March 13, 2014 – Forex News
The USD/JPY has gone down a little earlier due to worse than expected Chinese Fixed Asset Investment and Industrial Production data. Especially in Asia, the yen is viewed as a safe haven asset and traders will often flee to it in the event of a crisis. In this case, the bad Chinese data underscores preexisting anxiety about the prospects of the world’s second largest economy – causing investors to seek safety in the yen and pushing the USD/JPY down. At the moment, the pair is retracing some of its losses and may do so for a little bit longer. Please note, however, that the pressure remains downward. Pay attention to the US Core retail Sales data coming out at 12:30 GMT and the BoJ Monetary Policy Meeting Minutes coming out at 23:50 GMT. Look for support at 102.50 and resistance at 103.40.
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