On Thursday, the EUR/USD plummeted and reached a 1-month low. The pair lost 200 pips before slightly correcting up to its current level of 1.1215. The movement was caused by the release of U.S. data. Despite the fact that the data was mixed, traders took it to be positive; U.S. Core Durable goods orders increased by 2.8% instead of by the expected 1.7% and the Core CPI increased by 0.2% instead of by the expected 0.1%. However, the U.S. CPI declined by 0.7% instead which was more than the expected -0.6%. Inflation data should be the main mover of the dollar as Janet Yellen repeated that the interest rate increase may be delayed if inflation does not near the 2% target.
Today, German Preliminary CPI data will be published and therefore, higher volatility is expected. In the afternoon, U.S. GDP data will come out. Later on, two FOMC members (Dudley and Fischer) will be speaking. The movement is sideways. Support is found at 1.1180 and resistance at 1.1270.
Yesterday, the GBP/USD dropped due to the reasons described in the EUR/USD paragraph. The U.S. Dollar reacted positively to the mixed data and pushed the pair to a low of 1.5390. The U.K. Second Estimate GDP was released and met expectations; The British economy grew by 0.5% over the last quarter which is the lowest pace seen since May 2013.
Today, the main event will be the U.S. Preliminary GDP release. The trend is slightly bullish. The support line is found at 1.5390 and resistance line at 1.5550.
February 27, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
On Thursday, the EUR/USD plummeted and reached a 1-month low. The pair lost 200 pips before slightly correcting up to its current level of 1.1215. The movement was caused by the release of U.S. data. Despite the fact that the data was mixed, traders took it to be positive; U.S. Core Durable goods orders increased by 2.8% instead of by the expected 1.7% and the Core CPI increased by 0.2% instead of by the expected 0.1%. However, the U.S. CPI declined by 0.7% instead which was more than the expected -0.6%. Inflation data should be the main mover of the dollar as Janet Yellen repeated that the interest rate increase may be delayed if inflation does not near the 2% target.
Today, German Preliminary CPI data will be published and therefore, higher volatility is expected. In the afternoon, U.S. GDP data will come out. Later on, two FOMC members (Dudley and Fischer) will be speaking. The movement is sideways. Support is found at 1.1180 and resistance at 1.1270.
GBP/USD
Yesterday, the GBP/USD dropped due to the reasons described in the EUR/USD paragraph. The U.S. Dollar reacted positively to the mixed data and pushed the pair to a low of 1.5390. The U.K. Second Estimate GDP was released and met expectations; The British economy grew by 0.5% over the last quarter which is the lowest pace seen since May 2013.
Today, the main event will be the U.S. Preliminary GDP release. The trend is slightly bullish. The support line is found at 1.5390 and resistance line at 1.5550.
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