After climbing for two days from 1.1100 to 1.1420, the EUR/USD reversed and is currently trading around 1.1260. The movement was caused by the stronger Dollar which appreciated on the back of the FOMC statement. Many analysts were expecting the Fed to adjust their policy with regards to new market conditions, including low oil prices. However, the Committee stated that the economy remains on track and that the interest rate hike should happen this year.
Today, traders should pay attention to German CPI data which will be released throughout the morning. The overall index will be announced at 1.00PM (GMT) and is expected to show a 0.8% decrease. The movement is slightly bearish. Support is found at 1.1220 and resistance at 1.1460.
After climbing to 1.5220 on Tuesday, the GBP/USD declined. The decrease was caused by the hawkish FOMC statement which removed speculation that the Fed might maintain low interest rates due to recent market conditions. As written in the FOMC statement “The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. … if incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated.” Therefore, the dollar’s outlook for this year is more bullish and we could see the pair falling back towards 1.5000 over the next few months.
The movement is sideways. Support is found at 1.5130 and resistance at 1.5220.
January 29, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
After climbing for two days from 1.1100 to 1.1420, the EUR/USD reversed and is currently trading around 1.1260. The movement was caused by the stronger Dollar which appreciated on the back of the FOMC statement. Many analysts were expecting the Fed to adjust their policy with regards to new market conditions, including low oil prices. However, the Committee stated that the economy remains on track and that the interest rate hike should happen this year.
Today, traders should pay attention to German CPI data which will be released throughout the morning. The overall index will be announced at 1.00PM (GMT) and is expected to show a 0.8% decrease. The movement is slightly bearish. Support is found at 1.1220 and resistance at 1.1460.
GBP/USD
After climbing to 1.5220 on Tuesday, the GBP/USD declined. The decrease was caused by the hawkish FOMC statement which removed speculation that the Fed might maintain low interest rates due to recent market conditions. As written in the FOMC statement “The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. … if incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated.” Therefore, the dollar’s outlook for this year is more bullish and we could see the pair falling back towards 1.5000 over the next few months.
The movement is sideways. Support is found at 1.5130 and resistance at 1.5220.
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