The EUR/USD continued to climb and reached 1.2600 despite strong U.S GDP data. However, the trend then reversed as the pair adjusted to the new information and the price dropped to 1.2560. The U.S. domestic output grew by a surprising 3.5% instead of an expected 3.1% which again supported the solid economic outlook. It is speculated that such positive data could push the Fed to consider a sooner hike in interest rates. Adding further pressure to the pair, the Euro also depreciated following negative German CPI data.
Today, traders will pay close attention to the EU CPI data at 10AM GMT as the threat of deflation seems to be increasing. If the data shows a figure below 0.3% we should expect the pair to drop below 1.2500. Support is found at 1.2500 and resistance is at 1.2640.
On Thursday, the GBP/USD increased to 1.6040 but following the GDP data from the U.S. the pair started to fall and returned below 1.6000. The movement for the pair was driven by the U.S. Dollar.
Today there will be several announcements around 12.30PM (GMT) but none of them are expected to cause significant movement. Due to this investors should stick to technical trading with shorter expiries. The trend is slightly bearish. Support is found at 1.5950 and resistance at 1.6050.
October 31, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
The EUR/USD continued to climb and reached 1.2600 despite strong U.S GDP data. However, the trend then reversed as the pair adjusted to the new information and the price dropped to 1.2560. The U.S. domestic output grew by a surprising 3.5% instead of an expected 3.1% which again supported the solid economic outlook. It is speculated that such positive data could push the Fed to consider a sooner hike in interest rates. Adding further pressure to the pair, the Euro also depreciated following negative German CPI data.
Today, traders will pay close attention to the EU CPI data at 10AM GMT as the threat of deflation seems to be increasing. If the data shows a figure below 0.3% we should expect the pair to drop below 1.2500. Support is found at 1.2500 and resistance is at 1.2640.
GBP/USD
On Thursday, the GBP/USD increased to 1.6040 but following the GDP data from the U.S. the pair started to fall and returned below 1.6000. The movement for the pair was driven by the U.S. Dollar.
Today there will be several announcements around 12.30PM (GMT) but none of them are expected to cause significant movement. Due to this investors should stick to technical trading with shorter expiries. The trend is slightly bearish. Support is found at 1.5950 and resistance at 1.6050.
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