The EUR/USD pair decreased yesterday to almost 1.3560. The downwards movement was caused by European Central Bank Executive board member Benoit Coeure who said that a negative deposit rate is “a very possible option”. Following the announcement, the Euro immediately depreciated against major peers. Mario Draghi, who had a speech later, changed the sentiment and helped the Euro to regain some ground. The pair is currently ranging around 1.3615 and has slightly positive momentum before the ECB Monthly Bulletin will be released at 9.00AM (GMT). At 1.30PM (GMT) the U.S. Retail Sales and Core Retail Sales data will come out. The expectation is to see a lower figure than during the previous 3 months due to bad weather. If the data beats expectations 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 the BoE Inflation report as well as Mark Carney’s speech. The Bank of England decided to keep the interest rates low despite better economic conditions. The Pound also benefited from the small crisis over the Euro once Coeure spoke. The economic outlook of the U.K. was revised upwards. Today there are no economic events coming from the U.K. market so we should pay attention to the U.S. market and Retail Sales data. It is possible that after such a rapid increase we will see a price correction down. The support lying at 1.6520 and resistance at 1.6640.
The USD/JPY pair slid down slightly below the 102.00 level during the Asian session. The Yen, as a safe-haven currency, benefited from the high unemployment rate from Australia which climbed to an 11 year maximum. The Australian unemployment rate is now 6% which is 0.6% higher than the previous year. The U.S. Dollar index is at a 10-week low which has also kept the pair lower. Today we should keep an eye on 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 a price correction soon. The support is lying at 101.95 and resistance at 102.70.
The price of Gold has continued to move up for a 4th day and touched a new 3-month high. The price climbed to $1,296/ounce where it then reversed. However, we should be careful with buying positions. Gold which is considered to be a safe haven asset usually benefits from softer stock and bond data. As we can see equities and bonds are moving higher so we might only be seeing technical buying which might finish soon. With a higher price physical demand weakened and that’s another reason to expect some downwards movement. Investors are now looking at $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. The downwards movement was caused by European Central Bank Executive board member Benoit Coeure who said that a negative deposit rate is “a very possible option”. Following the announcement, the Euro immediately depreciated against major peers. Mario Draghi, who had a speech later, changed the sentiment and helped the Euro to regain some ground. The pair is currently ranging around 1.3615 and has slightly positive momentum before the ECB Monthly Bulletin will be released at 9.00AM (GMT). At 1.30PM (GMT) the U.S. Retail Sales and Core Retail Sales data will come out. The expectation is to see a lower figure than during the previous 3 months due to bad weather. If the data beats expectations 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 the BoE Inflation report as well as Mark Carney’s speech. The Bank of England decided to keep the interest rates low despite better economic conditions. The Pound also benefited from the small crisis over the Euro once Coeure spoke. The economic outlook of the U.K. was revised upwards. Today there are no economic events coming from the U.K. market so we should pay attention to the U.S. market and Retail Sales data. It is possible that after such a rapid increase we will see a price correction down. The support lying at 1.6520 and resistance at 1.6640.
The USD/JPY pair slid down slightly below the 102.00 level during the Asian session. The Yen, as a safe-haven currency, benefited from the high unemployment rate from Australia which climbed to an 11 year maximum. The Australian unemployment rate is now 6% which is 0.6% higher than the previous year. The U.S. Dollar index is at a 10-week low which has also kept the pair lower. Today we should keep an eye on 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 a price correction soon. The support is lying at 101.95 and resistance at 102.70.
The price of Gold has continued to move up for a 4th day and touched a new 3-month high. The price climbed to $1,296/ounce where it then reversed. However, we should be careful with buying positions. Gold which is considered to be a safe haven asset usually benefits from softer stock and bond data. As we can see equities and bonds are moving higher so we might only be seeing technical buying which might finish soon. With a higher price physical demand weakened and that’s another reason to expect some downwards movement. Investors are now looking at $1,300/ounce level. The sentiment is slightly bearish with support at 1,278 and resistance at 1,300.