On Friday, the EUR/USD dropped sharply after the Head of the Federal Reserve, Janet Yellen, presented a speech at the Jackson Hole Symposium. Her remarks were not too surprising as she underlined previous comments regarding the U.S. labour market. Mario Draghi, the President of the European Central Bank, also spoke and noted that inflation in the EU has been pushed down by the situation in Ukraine. He stated that the ECB “will use all the available instruments needed to ensure price stability over the medium term”. Expectations of additional monetary stimulus from the ECB rose and pushed the pair below 1.3200. The pair is trading around a 12 month low and could reach 1.3100 if today’s Ifo Business Climate comes out worse than predicted. This release will take place at 8AM GMT.
The movement is slightly bearish. Support is found at 1.3180 and resistance at 1.3300.
GBP/USD
The GBP/USD opened the week with a negative gap and the pair dropped to 1.3540. The gap was caused by the stronger U.S. Dollar which benefited from comments made at the Jackson Hole Symposium. However, the pair then increased slightly and rose to 1.6570. Today, traders should pay attention to the U.S. market as the U.K market will remain closed for a Bank holiday. At 2PM (GMT) the U.S. New Home Sales will be released and might increase volatility.
The trend is sideways. Support is found at 1.6530 and resistance at 1.6600.
August 25, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
On Friday, the EUR/USD dropped sharply after the Head of the Federal Reserve, Janet Yellen, presented a speech at the Jackson Hole Symposium. Her remarks were not too surprising as she underlined previous comments regarding the U.S. labour market. Mario Draghi, the President of the European Central Bank, also spoke and noted that inflation in the EU has been pushed down by the situation in Ukraine. He stated that the ECB “will use all the available instruments needed to ensure price stability over the medium term”. Expectations of additional monetary stimulus from the ECB rose and pushed the pair below 1.3200. The pair is trading around a 12 month low and could reach 1.3100 if today’s Ifo Business Climate comes out worse than predicted. This release will take place at 8AM GMT.
The movement is slightly bearish. Support is found at 1.3180 and resistance at 1.3300.
GBP/USD
The GBP/USD opened the week with a negative gap and the pair dropped to 1.3540. The gap was caused by the stronger U.S. Dollar which benefited from comments made at the Jackson Hole Symposium. However, the pair then increased slightly and rose to 1.6570. Today, traders should pay attention to the U.S. market as the U.K market will remain closed for a Bank holiday. At 2PM (GMT) the U.S. New Home Sales will be released and might increase volatility.
The trend is sideways. Support is found at 1.6530 and resistance at 1.6600.
Related Posts: