The EUR/USD pair decreased yesterday to almost 1.3560 area. The movement down was caused by European Central Bank Executive board member Benoit Coeure who said that negative deposit rate is “a very possible option”. With that announcement Euro immediately depreciated against major peers. Mario Draghi, who had a speech later, changed the sentiment and help the Euro to get some of the loose down. The pair is currently ranging around 1.3615 and has slightly positive momentum before ECB Monthly Bulletin will be released at 9.00AM (GMT). At 1.30PM (GMT) the U.S. Retail Sales and Core Retail Sales data are coming out. The expectation is to see lower figures than previous 3 months due to bad weather condition. If the data beats the expectation the pair might test its support. The support is lying at 1.3560 and resistance at 1.3685.
Yesterday the GBP/USD pair added almost 200 pips and climbed as high as 1.6620. The British pound was spurred by BoE Inflation report as well as Mark Carney speech. Bank of England decided to keep the interest rates low despite better economic conditions. The Pound also benefited from the small crisis over Euro once Coeure said his idea of negative rates. The economic outlook of the U.K. was revised upwards. Today there are no economic events coming from U.K. market so we should pay attention to U.S. market and the Retail Sales data. It is possible that after such a rapid increase we will see some price correction down. The support lying at 1.6520 and resistance at 1.6640.
The USD/JPY pair slid down slightly below 102.00 level during the Asian session. Yen as a safe-haven currency benefited from the high unemployment rate of Australia which climbed to its 11 years maximum. The Australian unemployment rate is now 6% which is 0.6% more than previous year. U.S. Dollar index is on its 10-weeks low which also keep the pair lower. Today we should keep an eye on the U.S. Retail Sales and see if the sentiment change. The price is now bouncing on its support so it is possible that we will see some price correction soon. The support is lying at 101.95 and resistance at 102.70.
Price of Gold has continued its movement up for the 4th day in a row and again touched new 3-months maximum. The price climbed to $1,296/ounce where reversed. However, we should be careful with buying positions. Gold which is consider to be a safe haven asset, is usually benefits from softer stock and bond data. As we can see equities and bonds are moving higher so we might see just technical buying which might finish soon. With a higher price the physical demand weakened and that’s a second reason why to expect some movement down any soon. Investors are now looking on $1,300/ounce level. The sentiment is slightly bearish with support at 1,278 and resistance at 1,300.
February 13, 2014 – Forex News
Hot Asset For Today: EUR/USD
The EUR/USD pair decreased yesterday to almost 1.3560 area. The movement down was caused by European Central Bank Executive board member Benoit Coeure who said that negative deposit rate is “a very possible option”. With that announcement Euro immediately depreciated against major peers. Mario Draghi, who had a speech later, changed the sentiment and help the Euro to get some of the loose down. The pair is currently ranging around 1.3615 and has slightly positive momentum before ECB Monthly Bulletin will be released at 9.00AM (GMT). At 1.30PM (GMT) the U.S. Retail Sales and Core Retail Sales data are coming out. The expectation is to see lower figures than previous 3 months due to bad weather condition. If the data beats the expectation the pair might test its support. The support is lying at 1.3560 and resistance at 1.3685.
Yesterday the GBP/USD pair added almost 200 pips and climbed as high as 1.6620. The British pound was spurred by BoE Inflation report as well as Mark Carney speech. Bank of England decided to keep the interest rates low despite better economic conditions. The Pound also benefited from the small crisis over Euro once Coeure said his idea of negative rates. The economic outlook of the U.K. was revised upwards. Today there are no economic events coming from U.K. market so we should pay attention to U.S. market and the Retail Sales data. It is possible that after such a rapid increase we will see some price correction down. The support lying at 1.6520 and resistance at 1.6640.
The USD/JPY pair slid down slightly below 102.00 level during the Asian session. Yen as a safe-haven currency benefited from the high unemployment rate of Australia which climbed to its 11 years maximum. The Australian unemployment rate is now 6% which is 0.6% more than previous year. U.S. Dollar index is on its 10-weeks low which also keep the pair lower. Today we should keep an eye on the U.S. Retail Sales and see if the sentiment change. The price is now bouncing on its support so it is possible that we will see some price correction soon. The support is lying at 101.95 and resistance at 102.70.
Price of Gold has continued its movement up for the 4th day in a row and again touched new 3-months maximum. The price climbed to $1,296/ounce where reversed. However, we should be careful with buying positions. Gold which is consider to be a safe haven asset, is usually benefits from softer stock and bond data. As we can see equities and bonds are moving higher so we might see just technical buying which might finish soon. With a higher price the physical demand weakened and that’s a second reason why to expect some movement down any soon. Investors are now looking on $1,300/ounce level. The sentiment is slightly bearish with support at 1,278 and resistance at 1,300.
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