The EUR/USD reacted strongly to the U.S Non-farm Payrolls data and dropped towards its support level at 1.1750. However, despite strong figures, the average wage change decreased by 0.2% cutting the hawkish outlook for the interest rate increase. Later in the day, FOMC member Jeffrey Lacker spoke and his comments were less hawkish than expected which added more pressure to the Dollar pushing it back down to 1.1860.
Today, FOMC member, Dennis Lockhart, will be speaking. He is usually dovish so we could see bearish movement on the U.S. Dollar. The movement is sideways. Support is found at 1.1750 and resistance at 1.1880.
On Friday, the GBP/USD rose to 1.5200, recovering more than 50% of its drop seen during the week. The pair first moved lower as the U.S. Non-farm payrolls data showed better-than-expected figures, however sentiment became bullish as the market assessed lower than expected wage growth. Following the data, we can infer that it is unlikely that the Fed will increase interest rates sooner than in second half of 2015.
Today, look out for a possible downwards price correction. The movement is sideways. Support is found at 1.5000 and resistance at 1.5200.
January 12, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
The EUR/USD reacted strongly to the U.S Non-farm Payrolls data and dropped towards its support level at 1.1750. However, despite strong figures, the average wage change decreased by 0.2% cutting the hawkish outlook for the interest rate increase. Later in the day, FOMC member Jeffrey Lacker spoke and his comments were less hawkish than expected which added more pressure to the Dollar pushing it back down to 1.1860.
Today, FOMC member, Dennis Lockhart, will be speaking. He is usually dovish so we could see bearish movement on the U.S. Dollar. The movement is sideways. Support is found at 1.1750 and resistance at 1.1880.
GBP/USD
On Friday, the GBP/USD rose to 1.5200, recovering more than 50% of its drop seen during the week. The pair first moved lower as the U.S. Non-farm payrolls data showed better-than-expected figures, however sentiment became bullish as the market assessed lower than expected wage growth. Following the data, we can infer that it is unlikely that the Fed will increase interest rates sooner than in second half of 2015.
Today, look out for a possible downwards price correction. The movement is sideways. Support is found at 1.5000 and resistance at 1.5200.
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