Currency Markets Range In Anticipation of American Data

February 27, 2014 – Forex News

The EUR/USD went down yesterday in anticipation of US New Home Sales, which turned out better than expected. Today, the pair has retraced a small amount of these losses – though it is beginning to range in anticipation of data coming out later today. This morning, pay attention to the German unemployment data coming out at 8:55 GMT. Later today we have US Core Durable Goods data and Initial Jobless Claims data coming out at 13:30pm GMT. At 15:00 GMT, Federal reserve chairman Janet Yellen will speak – giving us crucial insight into the future of US monetary policy. Unfortunately, the release of all this data affecting EUR/USD later today is currently causing the pair to range as investors await crucial information needed to make decisions. Look for support at 1.3682 and resistance at 1.3690.

The USD/JPY went up yesterday after better than expected US New Home Sales data pushed up the dollar and a planned increase in the Japanese sales tax weighed heavily on the yen. During the Asian session today, the pair has retraced some of these gains and is now ranging in anticipation of US data later in the day. In addition to all news affecting the dollar, Japanese Household Spending and Tokyo CPI data will be coming out at 23:30 GMT and Japanese Industrial Production and Retail sales data will be coming out at 23:50 GMT. Consequently, the USD/JPY will be experiencing a lot of movement later in the day, so it will be important for traders to keep a close eye on today’s events. Look for support at 102.35 and resistance at 102.40.