The EUR/USD reached a high of 1.2575 but has since dropped 130 pips and is currently trading around 1.2440. Gains were initially seen as the pair reacted to the negative Japanese GDP data which strengthened the Dollar. Later in the day, the President of the European Central Bank, Mario Draghi, testified before the Economic and Monetary Affairs Committee. Draghi explained that the momentum of European growth is slowing, causing the forecast to be revised downwards, and that inflation remained low around 0.4%. Despite his dovish comments, however, the Euro did not drop significantly as the market had already priced in these facts.
During the Asian session the pair climbed back up to 1.2470. The market is now waiting for the German ZEW Economic Sentiment data which is coming out at 10.00AM (GMT). If the figure is lower than 0, we should expect the pair to fall towards its support at 1.2400.
On Monday, the GBP/USD dropped as the Dollar strengthened following disappointing Japanese GDP data. The price then started to range between 1.5615 and 1.5660. Volatility remained low despite the released of U.S Industrial Production data which showed that output in October decreased by 0.1%, the reading was expected to increase by 0.2%.
Today, there should be more trading opportunities. At 9.30AM (GMT) the U.K. CPI data will be released and it is expected to show an increase of 1.2%. Later on at 1.30PM (GMT) the U.S. PPI data will come out. It is widely expected to see a negative change on the price of finished goods and services. That could pull the pair above its resistance at 1.5670. The trend is slightly bearish. Support is found at 1.5590 and resistance at 1.5670.
November 18, 2014 – Forex News
Hot asset for today: GBP/USD
EUR/USD
The EUR/USD reached a high of 1.2575 but has since dropped 130 pips and is currently trading around 1.2440. Gains were initially seen as the pair reacted to the negative Japanese GDP data which strengthened the Dollar. Later in the day, the President of the European Central Bank, Mario Draghi, testified before the Economic and Monetary Affairs Committee. Draghi explained that the momentum of European growth is slowing, causing the forecast to be revised downwards, and that inflation remained low around 0.4%. Despite his dovish comments, however, the Euro did not drop significantly as the market had already priced in these facts.
During the Asian session the pair climbed back up to 1.2470. The market is now waiting for the German ZEW Economic Sentiment data which is coming out at 10.00AM (GMT). If the figure is lower than 0, we should expect the pair to fall towards its support at 1.2400.
GBP/USD
On Monday, the GBP/USD dropped as the Dollar strengthened following disappointing Japanese GDP data. The price then started to range between 1.5615 and 1.5660. Volatility remained low despite the released of U.S Industrial Production data which showed that output in October decreased by 0.1%, the reading was expected to increase by 0.2%.
Today, there should be more trading opportunities. At 9.30AM (GMT) the U.K. CPI data will be released and it is expected to show an increase of 1.2%. Later on at 1.30PM (GMT) the U.S. PPI data will come out. It is widely expected to see a negative change on the price of finished goods and services. That could pull the pair above its resistance at 1.5670. The trend is slightly bearish. Support is found at 1.5590 and resistance at 1.5670.
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