The euro rose against the dollar, giving up its former losses, triggered by the latest batch of downbeat PMI data for the Euro-zone and German economy. Meanwhile, an European Central Bank (ECB) Governing Council member, Erkki Liikanen reiterated his earlier view that, due to the underutilized capacity in the Euro-zone economy, the central bank would keep its interest rate low for a prolonged period of time even if it sees some improvement in the region’s economic growth. Furthermore, he indicated that the ECB would keep an eye on the Euro exchange rate to study its impact on inflation. Traders keenly await a planned speech from the ECB Chief, Mario Draghi, due later today, for further cues in the Euro. Today’s German Ifo report will bring another perspective on the business community’s mood. Analysts are looking for a stable profile overall although the expectations component for March is projected to dip a bit for the second month in a row. If so, should we view this as an early sign of trouble for confidence in the face of heightened geopolitical risk in the east? Not necessarily, although a bigger-than-expected slide in today’s expectations index might be a game-changer for looking ahead. The financial events to look out for today are German Ifo Business Climate Index at 9.00am GMT, U.S New Home Sales and U.S CB Consumer Confidence at 2.00pm GMT, and President Draghi speaks at 4.00pm GMT. Today EUR/USD has support of 1.3760 and resistance of 1.3880.
GBP/USD
The pound traded higher against the dollar on yesterday after industry data revealed the U.S. manufacturing sector produced slightly less goods than expected this month. Today the U.K is to publish one of the most important reports to which the Bank of England continues to be guided in determining the course of monetary policy, the consumer price index. Most likely, the inflation figures confirm that there is no sense to rush any tightening, as the index may continue to fall and may reach 1.7% which would be the lowest level since October 2009 and remains below the target level set by the Bank of England at 2.0%. A further slowdown in U.K. inflation may generate a further decline in the pairing as it limits the Bank of England’s scope to normalize monetary policy sooner rather than later. The financial events to look out for today are U.K CPI at 9.30am GMT, U.S New Home Sales and U.S CB Consumer Confidence at 2.00pm GMT. Today GBP/USD has a support of 1.6460 and a resistance of 1.6510.
USD/JPY
Yesterday, the Bank of Japan Deputy Governor, Kikuo Iwata, highlighted the possibility for deflation risks in the Japanese economy should inflation rate stay below 1% for a prolonged period of the time. Furthermore, he eased some concerns on Japan’s economic growth by stating that the BoJ’s current stimulus programme has already taken into account any possible short-term economic impact arising from a planned sales tax rate in April. No news is expected to be published in Japan until Friday, so the pairing’s sentiments will be dominated by geopolitical factors and US macro statistics. During the European session the pairing may come under pressure if there are new signs of Russian-Ukrainian conflict escalation, though the investors and traders may wait as the US data calendar is packed with risk events today. We are waiting for Conference Board consumer confidence and new home sales reports that have a good market moving potential. Better than expected data will trigger the USD upside correction. The financial events to look out for are U.S New Home Sales and U.S CB Consumer Confidence at 2.00pm GMT. Today USD/JPY has support of 102.00 and resistance of 102.80
March 25, 2014 – Forex News
Hot Asset For Today: GBP/USD
EUR/USD
The euro rose against the dollar, giving up its former losses, triggered by the latest batch of downbeat PMI data for the Euro-zone and German economy. Meanwhile, an European Central Bank (ECB) Governing Council member, Erkki Liikanen reiterated his earlier view that, due to the underutilized capacity in the Euro-zone economy, the central bank would keep its interest rate low for a prolonged period of time even if it sees some improvement in the region’s economic growth. Furthermore, he indicated that the ECB would keep an eye on the Euro exchange rate to study its impact on inflation. Traders keenly await a planned speech from the ECB Chief, Mario Draghi, due later today, for further cues in the Euro. Today’s German Ifo report will bring another perspective on the business community’s mood. Analysts are looking for a stable profile overall although the expectations component for March is projected to dip a bit for the second month in a row. If so, should we view this as an early sign of trouble for confidence in the face of heightened geopolitical risk in the east? Not necessarily, although a bigger-than-expected slide in today’s expectations index might be a game-changer for looking ahead. The financial events to look out for today are German Ifo Business Climate Index at 9.00am GMT, U.S New Home Sales and U.S CB Consumer Confidence at 2.00pm GMT, and President Draghi speaks at 4.00pm GMT. Today EUR/USD has support of 1.3760 and resistance of 1.3880.
GBP/USD
The pound traded higher against the dollar on yesterday after industry data revealed the U.S. manufacturing sector produced slightly less goods than expected this month. Today the U.K is to publish one of the most important reports to which the Bank of England continues to be guided in determining the course of monetary policy, the consumer price index. Most likely, the inflation figures confirm that there is no sense to rush any tightening, as the index may continue to fall and may reach 1.7% which would be the lowest level since October 2009 and remains below the target level set by the Bank of England at 2.0%. A further slowdown in U.K. inflation may generate a further decline in the pairing as it limits the Bank of England’s scope to normalize monetary policy sooner rather than later. The financial events to look out for today are U.K CPI at 9.30am GMT, U.S New Home Sales and U.S CB Consumer Confidence at 2.00pm GMT. Today GBP/USD has a support of 1.6460 and a resistance of 1.6510.
USD/JPY
Yesterday, the Bank of Japan Deputy Governor, Kikuo Iwata, highlighted the possibility for deflation risks in the Japanese economy should inflation rate stay below 1% for a prolonged period of the time. Furthermore, he eased some concerns on Japan’s economic growth by stating that the BoJ’s current stimulus programme has already taken into account any possible short-term economic impact arising from a planned sales tax rate in April. No news is expected to be published in Japan until Friday, so the pairing’s sentiments will be dominated by geopolitical factors and US macro statistics. During the European session the pairing may come under pressure if there are new signs of Russian-Ukrainian conflict escalation, though the investors and traders may wait as the US data calendar is packed with risk events today. We are waiting for Conference Board consumer confidence and new home sales reports that have a good market moving potential. Better than expected data will trigger the USD upside correction. The financial events to look out for are U.S New Home Sales and U.S CB Consumer Confidence at 2.00pm GMT. Today USD/JPY has support of 102.00 and resistance of 102.80
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