Yesterday, the EUR/USD broke through its support when the U.S. released its CPI and housing data. Despite inflation growing at the slowest pace since March, the market reacted positively. The U.S. Dollar appreciated and reached its highest value since September 2013. During the Asian session bearish sentiment continued for the pair and it headed towards its second support level at 1.3300. It is possible the pair will break through this level today when the FOMC Meeting Minutes are released at 6pm GMT. If the report supports U.S. economic growth the pair may drop to 1.3200.
The movement is slightly bearish. Support is found at 1.3300 and resistance at 1.3340.
GBP/USD
The GBP/USD reacted negatively to the U.K. inflation data which came out below expectations. The predicted 1.8% annual increase appeared to be just 1.6%. The Retail Price Index, Production Price index and House price index also came out weaker-than-expected and therefore speculation regarding a possible earlier hike in interest rates disappeared. The price fell to 1.6600 and if the Monetary Policy Committee disappoints the market today after voting, the pair might fall below 1.6600. Traders should also remember the FOMC Meeting Minutes report which is coming out at 6.00PM (GMT).
The trend is sideways. Support is found at 1.6600 and resistance at 1.6660.
August 20, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
Yesterday, the EUR/USD broke through its support when the U.S. released its CPI and housing data. Despite inflation growing at the slowest pace since March, the market reacted positively. The U.S. Dollar appreciated and reached its highest value since September 2013. During the Asian session bearish sentiment continued for the pair and it headed towards its second support level at 1.3300. It is possible the pair will break through this level today when the FOMC Meeting Minutes are released at 6pm GMT. If the report supports U.S. economic growth the pair may drop to 1.3200.
The movement is slightly bearish. Support is found at 1.3300 and resistance at 1.3340.
GBP/USD
The GBP/USD reacted negatively to the U.K. inflation data which came out below expectations. The predicted 1.8% annual increase appeared to be just 1.6%. The Retail Price Index, Production Price index and House price index also came out weaker-than-expected and therefore speculation regarding a possible earlier hike in interest rates disappeared. The price fell to 1.6600 and if the Monetary Policy Committee disappoints the market today after voting, the pair might fall below 1.6600. Traders should also remember the FOMC Meeting Minutes report which is coming out at 6.00PM (GMT).
The trend is sideways. Support is found at 1.6600 and resistance at 1.6660.
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