Yesterday, the EUR/USD pair broke its support when the U.S. CPI and housing data were released. Despite the fact that the inflation growth in a lowest peace since March, the market reacted positively and the U.S. Dollar appreciated and reached the highest value since September 2013. The pair has continued the bearish movement during the Asian session and heading to test the second support soon which is found at 1.3300. It is possible that the pair will break it because we are expecting very important news today. At 6.00PM (GMT) the FOMC Meeting Minutes will be released. If this report support the U.S. economic growth the pair may drop to 1.3200 area. The movement is slightly bearish. The support is found at 1.3300 and resistance at 1.3340.
The GBP/USD pair negatively reacted on the U.K. inflation data which came out below expectation. The predicted 1.8% annual increase in price level appeared to be just 1.6%. The Retail Price Index, Production Price index and House price index also came weaker-than-expected and therefore the speculations over possible earlier interest rate hike disappeared. The price fell to 1.6600 by now and if the Monetary Policy Committee disappoints the market today with their voting, the pair might go below 1.6600. We should not forget about the FOMC Meeting Minutes report which is coming out at 6.00PM (GMT). The trend is sideways. The support is found at 1.6600 and resistance at 1.6660.
August 20, 2014 – Forex News
Hot asset for today: EUR/USD
Yesterday, the EUR/USD pair broke its support when the U.S. CPI and housing data were released. Despite the fact that the inflation growth in a lowest peace since March, the market reacted positively and the U.S. Dollar appreciated and reached the highest value since September 2013. The pair has continued the bearish movement during the Asian session and heading to test the second support soon which is found at 1.3300. It is possible that the pair will break it because we are expecting very important news today. At 6.00PM (GMT) the FOMC Meeting Minutes will be released. If this report support the U.S. economic growth the pair may drop to 1.3200 area. The movement is slightly bearish. The support is found at 1.3300 and resistance at 1.3340.
The GBP/USD pair negatively reacted on the U.K. inflation data which came out below expectation. The predicted 1.8% annual increase in price level appeared to be just 1.6%. The Retail Price Index, Production Price index and House price index also came weaker-than-expected and therefore the speculations over possible earlier interest rate hike disappeared. The price fell to 1.6600 by now and if the Monetary Policy Committee disappoints the market today with their voting, the pair might go below 1.6600. We should not forget about the FOMC Meeting Minutes report which is coming out at 6.00PM (GMT). The trend is sideways. The support is found at 1.6600 and resistance at 1.6660.
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