Over the past five days, the EUR/USD climbed due to speculation that the FOMC statement would be dovish. Yesterday, the price reached a high of 1.2770. However, the statement showed hawkish projections and caused the pair to drop 180 pips to 1.2590. The Fed decided to end the quantitative easing program, which was expected, but also made positive remarks about the labour market.
Today, pay attention to the German CPI data which could provide insight to the result of tomorrow’s EU CPI data. At 12.30PM (GMT) U.S. GDP data will be announced and at 1.00PM (GMT) Fed Chair, Janet Yellen, will be delivering opening remarks at the Board of Governors of the Federal Reserve System’s National Summit. The movement is bearish but there could be a price correction soon. Support is found at 1.2580 and resistance is at 1.2650.
On Wednesday, the GBP/USD was driven by the U.S. Dollar which appreciated following the hawkish FOMC statement. The market already expected most of the outcome of the meeting, however, hawkish remarks regarding the labour market came as a surprise. This could be a strategy to boost the stock market as it tumbled following speculation that interest rates could increase. Following the report the pair broke through its support at 1.600 and dropped to its current level of 1.5970.
Today, keep an eye on the U.S. GDP report which will be released at 12.30PM (GMT) and Janet Yellen’s speech at 1.00PM (GMT). The trend is slightly bearish. Support is found at 1.5950 and resistance at 1.6025.
October 30, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
Over the past five days, the EUR/USD climbed due to speculation that the FOMC statement would be dovish. Yesterday, the price reached a high of 1.2770. However, the statement showed hawkish projections and caused the pair to drop 180 pips to 1.2590. The Fed decided to end the quantitative easing program, which was expected, but also made positive remarks about the labour market.
Today, pay attention to the German CPI data which could provide insight to the result of tomorrow’s EU CPI data. At 12.30PM (GMT) U.S. GDP data will be announced and at 1.00PM (GMT) Fed Chair, Janet Yellen, will be delivering opening remarks at the Board of Governors of the Federal Reserve System’s National Summit. The movement is bearish but there could be a price correction soon. Support is found at 1.2580 and resistance is at 1.2650.
GBP/USD
On Wednesday, the GBP/USD was driven by the U.S. Dollar which appreciated following the hawkish FOMC statement. The market already expected most of the outcome of the meeting, however, hawkish remarks regarding the labour market came as a surprise. This could be a strategy to boost the stock market as it tumbled following speculation that interest rates could increase. Following the report the pair broke through its support at 1.600 and dropped to its current level of 1.5970.
Today, keep an eye on the U.S. GDP report which will be released at 12.30PM (GMT) and Janet Yellen’s speech at 1.00PM (GMT). The trend is slightly bearish. Support is found at 1.5950 and resistance at 1.6025.
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