The EUR/USD increased since Friday when FOMC members made relatively dovish remarks, causing investors to speculate that the interest rate hike will be delayed. Yesterday, this sentiment continued and the pair almost reached 1.1000. Some analysts believe that this rally could continue up to 1.1100 before falling back. However, as fundamentals remain unchanged, others believe that the pair will drop to parity; the question is when it will happen.
Today, there will be two main events. The EU Flash Manufacturing PMI will be released at 9.00AM (GMT) and the U.S. CPI will be announced at 12.30PM (GMT). Traders are more concerned about the U.S. inflation data as it could revive the bets for interest rate lift in June. The trend is slightly bullish but might change soon. Support is found at 1.0760 and resistance at 1.1100.
Yesterday, the GBP/USD corrected and dropped to 1.4835 before reversing and climbing back above 1.4900. The pair was driven by the weaker dollar which recently depreciated against major peers as investors shifted their bets for when the Fed will increase interest rates. Yesterday the Fed Vice President, Stanley Fischer, stated that the lift could be in ”June or September or some later date or some date in between.” Uncertainty on the market pulled the pair up so it might test its resistance soon.
Today, we should pay attention to inflation releases from both countries. At 9.30AM (GMT) the U.K. CPI will be released and is expected to drop to 0.1%. On the other hand, U.S. CPI data, which will be released at 12.30PM (GMT), are predicted to have increased to 0.2%.The trend is sideways. Support line is found at 1.4630 and resistance line at 1.5010.
March 24, 2015 – Forex News
EUR/USD
The EUR/USD increased since Friday when FOMC members made relatively dovish remarks, causing investors to speculate that the interest rate hike will be delayed. Yesterday, this sentiment continued and the pair almost reached 1.1000. Some analysts believe that this rally could continue up to 1.1100 before falling back. However, as fundamentals remain unchanged, others believe that the pair will drop to parity; the question is when it will happen.
Today, there will be two main events. The EU Flash Manufacturing PMI will be released at 9.00AM (GMT) and the U.S. CPI will be announced at 12.30PM (GMT). Traders are more concerned about the U.S. inflation data as it could revive the bets for interest rate lift in June. The trend is slightly bullish but might change soon. Support is found at 1.0760 and resistance at 1.1100.
GBP/USD
Yesterday, the GBP/USD corrected and dropped to 1.4835 before reversing and climbing back above 1.4900. The pair was driven by the weaker dollar which recently depreciated against major peers as investors shifted their bets for when the Fed will increase interest rates. Yesterday the Fed Vice President, Stanley Fischer, stated that the lift could be in ”June or September or some later date or some date in between.” Uncertainty on the market pulled the pair up so it might test its resistance soon.
Today, we should pay attention to inflation releases from both countries. At 9.30AM (GMT) the U.K. CPI will be released and is expected to drop to 0.1%. On the other hand, U.S. CPI data, which will be released at 12.30PM (GMT), are predicted to have increased to 0.2%.The trend is sideways. Support line is found at 1.4630 and resistance line at 1.5010.
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