The European single currency experienced its biggest climb in 3 months and pulled the EUR/USD pair all the way up to 1.1530. Demand for the Euro was spurred by negotiations between the European Central Bank and Greece as well as the upcoming meeting between the Greek Finance Minister and the ECB President. After reaching this level, however, the pair lost momentum and corrected downwards to its current level of 1.1480. The climb above 1.1500 could have over- valued the pair; Looking at the chart, we can see that the pair settled around 1.1360 after the ECB introduced more stimulus and therefore, we can estimate that equilibrium lies somewhere around this level. The sharp climb could therefore, be explained by weaker than expected U.S. data which has depreciated the U.S. dollar.
Today, the main event will be the U.S. ADP Non-farm Employment Change which will be released at 1.15PM (GMT). The movement is sideways. Support is found at 1.1380 and resistance at 1.1540.
Yesterday, the GBP/USD sharply climbed before reversing at 1.5200. The pair was driven by the strong U.K Construction PMI data which came out at 59.1, above the expected 56.9. In addition, U.S Factory Orders data decreased by 3.4% which was much higher than the expected decrease of 1.8%. U.S data has recently indicated a slow -down in the economy and could suggest that the interest rate increase will be delayed.
Today, traders should pay attention to the U.K. Services PMI data which will be released at 9.30AM (GMT). The U.S. ADP Non-Farm Employment Change will be posted at 1.15PM (GMT) and the U.S. ISM Non-manufacturing PMI will be released at 3.00PM (GMT). The movement is currently sideways. Support is found at 1.5100 and resistance at 1.5200.
February 4, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
The European single currency experienced its biggest climb in 3 months and pulled the EUR/USD pair all the way up to 1.1530. Demand for the Euro was spurred by negotiations between the European Central Bank and Greece as well as the upcoming meeting between the Greek Finance Minister and the ECB President. After reaching this level, however, the pair lost momentum and corrected downwards to its current level of 1.1480. The climb above 1.1500 could have over- valued the pair; Looking at the chart, we can see that the pair settled around 1.1360 after the ECB introduced more stimulus and therefore, we can estimate that equilibrium lies somewhere around this level. The sharp climb could therefore, be explained by weaker than expected U.S. data which has depreciated the U.S. dollar.
Today, the main event will be the U.S. ADP Non-farm Employment Change which will be released at 1.15PM (GMT). The movement is sideways. Support is found at 1.1380 and resistance at 1.1540.
GBP/USD
Yesterday, the GBP/USD sharply climbed before reversing at 1.5200. The pair was driven by the strong U.K Construction PMI data which came out at 59.1, above the expected 56.9. In addition, U.S Factory Orders data decreased by 3.4% which was much higher than the expected decrease of 1.8%. U.S data has recently indicated a slow -down in the economy and could suggest that the interest rate increase will be delayed.
Today, traders should pay attention to the U.K. Services PMI data which will be released at 9.30AM (GMT). The U.S. ADP Non-Farm Employment Change will be posted at 1.15PM (GMT) and the U.S. ISM Non-manufacturing PMI will be released at 3.00PM (GMT). The movement is currently sideways. Support is found at 1.5100 and resistance at 1.5200.
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