The EUR/USD increased to 1.2660, recovering some losses seen on Tuesday. The price correction occurred during today’s Asian session and could be connected to profit taking investments. As the Dollar has reached new highs against some of its peers, investors seem to be selling their positions before important data which will be released tomorrow.
As the pair is trading higher we can speculate that the price may drop as the European Central Bank is expected to introduce details of their plan to purchase billions of Euros worth of assets with the goal of supporting economic growth and weak inflation. Even though the current interest rate is expected to be maintained, the new details could be bearish for the single currency. Therefore, we should expect to see the main movement for the pair at 12.30PM (GMT) when the ECB Press Conference starts.
The movement is slightly downwards. Support is found at 1.2570 and resistance is at 1.2700.
On Wednesday, the GBP/USD traded in a wide range. First, as the U.K. Manufacturing PMI data came out below expectations, the pair dropped to 1.6160. However, traders started to sell the U.S. Dollar ahead of the U.S. labour data. The Dollar has gained almost 4% during the past month.
Today we should pay attention to the U.K. Construction PMI data which will be announced at 8.30PM (GMT). AT 12.30PM (GMT) U.S. Jobless Claims will be released and at 2PM (GMT) U.S. Factory Orders will come out. The trend is slightly bearish. Support is found at 1.6165 and resistance at 1.6280.
October 2, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
The EUR/USD increased to 1.2660, recovering some losses seen on Tuesday. The price correction occurred during today’s Asian session and could be connected to profit taking investments. As the Dollar has reached new highs against some of its peers, investors seem to be selling their positions before important data which will be released tomorrow.
As the pair is trading higher we can speculate that the price may drop as the European Central Bank is expected to introduce details of their plan to purchase billions of Euros worth of assets with the goal of supporting economic growth and weak inflation. Even though the current interest rate is expected to be maintained, the new details could be bearish for the single currency. Therefore, we should expect to see the main movement for the pair at 12.30PM (GMT) when the ECB Press Conference starts.
The movement is slightly downwards. Support is found at 1.2570 and resistance is at 1.2700.
GBP/USD
On Wednesday, the GBP/USD traded in a wide range. First, as the U.K. Manufacturing PMI data came out below expectations, the pair dropped to 1.6160. However, traders started to sell the U.S. Dollar ahead of the U.S. labour data. The Dollar has gained almost 4% during the past month.
Today we should pay attention to the U.K. Construction PMI data which will be announced at 8.30PM (GMT). AT 12.30PM (GMT) U.S. Jobless Claims will be released and at 2PM (GMT) U.S. Factory Orders will come out. The trend is slightly bearish. Support is found at 1.6165 and resistance at 1.6280.
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