Currencies Await US Data

The EUR/USD is moving down in anticipation of Eurozone CPI and unemployment rate data coming out today at 09:00 GMT. Though previous data has been meeting expectations, this outcome is not necessarily desirable due to deflationary pressure in the Eurozone. In addition, US Michigan Consumer Sentiment and Consumer Expectations data will come out at 13:55 GMT. Thus, the dollar may also see some bullish activity in anticipation. Look for support at 1.3150 and resistance at 1.3220.

The USD/JPY has been ranging as Japanese data came out mixed last night. Industrial production and Household spending data came out worse than expected, while retail sales data was better than expected. Thus, activity on the yen was erratic and sideways. For now, this movement will continue until later today when we will see more movement on the dollar. Look for support at 103.55 and resistance at 104.15.