Yesterday, the EUR/USD dropped to a new 9-year low and reached 1.1725. The pair reacted to news that the European Court of Justice stated that the European Central Banks’ Open Market Operations “may be legal” but must meet conditions. Last year, the German court argued that the bond-buying is illegal and therefore, the main court had to look into it. Since they found it as “possibly legal”, speculation that Mario Draghi will introduce new stimulus next week increased and pushed the pair down. However, later on, disappointing U.S. data was released and erased the previous movement.
The movement is sideways. Support is found at 1.1720 and resistance at 1.1870.
Trend: Sideways
GBP/USD
On Wednesday, the GBP/USD continued to trade with bullish sentiment and climbed above 1.5260. The increase was caused by disappointing U.S Retail Sales data which showed a 0.9% decrease instead of an expected 0.2% increase. In addition, the Governor of the Bank of England, Mark Carney, spoke before the Treasury Select Committee and stressed the difference between the situation in Europe and in the U.K. The pair slightly corrected its bullish movement but remained above 1.5200.
Today, the main events will be the U.S. PPI and Philly Fed Manufacturing Index which will be released at 1.30PM and 3.00PM (GMT). The movement is sideways. Support is found at 1.5140 and resistance at 1.5270.
Trend: Sideways
Gold
Yesterday, Gold peaked at $1,244/ounce but then reversed downwards. The price was boosted by weak U.S. Retail Sales data which disappointed the market. In addition, the stock market dropped, supporting the demand for gold. However, unlike other safe haven assets, Gold is considered to be risky and is predicted to drop further down in 2015.
The price is currently trading around $1,228/ounce. Traders should watch the U.S. PPI data which will be released at 1.30PM (GMT). The movement is sideways. Support is found at 1,204 and resistance at 1,244.
January 15, 2015 – Daily Market News
MARKET REVIEW 15/01/15
Hot asset for today: EUR/USD
EUR/USD
Yesterday, the EUR/USD dropped to a new 9-year low and reached 1.1725. The pair reacted to news that the European Court of Justice stated that the European Central Banks’ Open Market Operations “may be legal” but must meet conditions. Last year, the German court argued that the bond-buying is illegal and therefore, the main court had to look into it. Since they found it as “possibly legal”, speculation that Mario Draghi will introduce new stimulus next week increased and pushed the pair down. However, later on, disappointing U.S. data was released and erased the previous movement.
The movement is sideways. Support is found at 1.1720 and resistance at 1.1870.
Trend: Sideways
GBP/USD
On Wednesday, the GBP/USD continued to trade with bullish sentiment and climbed above 1.5260. The increase was caused by disappointing U.S Retail Sales data which showed a 0.9% decrease instead of an expected 0.2% increase. In addition, the Governor of the Bank of England, Mark Carney, spoke before the Treasury Select Committee and stressed the difference between the situation in Europe and in the U.K. The pair slightly corrected its bullish movement but remained above 1.5200.
Today, the main events will be the U.S. PPI and Philly Fed Manufacturing Index which will be released at 1.30PM and 3.00PM (GMT). The movement is sideways. Support is found at 1.5140 and resistance at 1.5270.
Trend: Sideways
Gold
Yesterday, Gold peaked at $1,244/ounce but then reversed downwards. The price was boosted by weak U.S. Retail Sales data which disappointed the market. In addition, the stock market dropped, supporting the demand for gold. However, unlike other safe haven assets, Gold is considered to be risky and is predicted to drop further down in 2015.
The price is currently trading around $1,228/ounce. Traders should watch the U.S. PPI data which will be released at 1.30PM (GMT). The movement is sideways. Support is found at 1,204 and resistance at 1,244.
Trend: Sideways
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