The EUR/USD almost fell to a 12-month low as the EU stated that Russia must scale back its intervention in Ukraine otherwise they will impose more sanctions. They stated that the EU ”stands ready to take significant further steps in light of the situation on the ground.” The pair has declined for the past month and a half as the economic outlook for the U.S and EU is diverging. The U.S. economy has been recovering at a strong peace, with data beating most expectations. On the other hand, the EU economy has been struggling and is facing very low inflation. Most analysts expect the European Central Bank will need to increase monetary stimulus as the interest rate was cut to a minimum. Therefore, we might see the pair test its support again later this week.
Today, as the U.S. market will remain closed, volatility should be low. The movement is sideways. Support is found at 1.3100 and resistance at 1.3220.
GBP/USD
The GBP/USD recovered from 1.6540 to 1.6630 as the bearish sentiment changed in reaction to slightly better U.K. data from last week. However today, the Manufacturing PMI was released and showed the lowest value since July 2013. The factory index probably declined on the back of the global tension.
Today, trading should be more technical as the U.S. market will remain closed and therefore there will be no economic data coming out. The trend is slightly bearish. Support is found at 1.6535 and resistance at 1.6650.
September 1, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
The EUR/USD almost fell to a 12-month low as the EU stated that Russia must scale back its intervention in Ukraine otherwise they will impose more sanctions. They stated that the EU ”stands ready to take significant further steps in light of the situation on the ground.” The pair has declined for the past month and a half as the economic outlook for the U.S and EU is diverging. The U.S. economy has been recovering at a strong peace, with data beating most expectations. On the other hand, the EU economy has been struggling and is facing very low inflation. Most analysts expect the European Central Bank will need to increase monetary stimulus as the interest rate was cut to a minimum. Therefore, we might see the pair test its support again later this week.
Today, as the U.S. market will remain closed, volatility should be low. The movement is sideways. Support is found at 1.3100 and resistance at 1.3220.
GBP/USD
The GBP/USD recovered from 1.6540 to 1.6630 as the bearish sentiment changed in reaction to slightly better U.K. data from last week. However today, the Manufacturing PMI was released and showed the lowest value since July 2013. The factory index probably declined on the back of the global tension.
Today, trading should be more technical as the U.S. market will remain closed and therefore there will be no economic data coming out. The trend is slightly bearish. Support is found at 1.6535 and resistance at 1.6650.
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