After falling from 1.2390, the EUR/USD tested its support level at 1.2300, several times. The pair is being driven by speculation ahead of today’s European Central Bank meeting in which they will decide whether to expand monetary stimulus. The European minimum bid rate will also be introduced at 12.45PM (GMT) but we expect the bank to maintain it at its current rate of 0.05%.
Higher volatility is expected when Mario Draghi, the President of the ECB, will hold his press conference at 1.30PM (GMT). If more stimulus is added, the pair should break below 1.2300. The movement is slightly bearish. Support is found at 1.2300 and resistance is at 1.2445.
On Wednesday, the GBP/USD increased slightly but once the price reached 1.57200, it reversed down. The British pound appreciated following the Autumn statement. George Osborne upgraded the economic growth forecast to 3% from 2.7%. However, he stated that the deficit has remained high but is declining. The overall sentiment of the report was hawkish which pulled the pair up. Gains were limited, however, as the U.S Dollar also strengthened.
Today, traders should pay attention to the U.K. Official Bank rate. If the ECB decides to add monetary stimulus it will most likely push the British pound down as well. The movement is sideways. Support is found at 1.5600 and resistance at 1.5780.
December 4, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
After falling from 1.2390, the EUR/USD tested its support level at 1.2300, several times. The pair is being driven by speculation ahead of today’s European Central Bank meeting in which they will decide whether to expand monetary stimulus. The European minimum bid rate will also be introduced at 12.45PM (GMT) but we expect the bank to maintain it at its current rate of 0.05%.
Higher volatility is expected when Mario Draghi, the President of the ECB, will hold his press conference at 1.30PM (GMT). If more stimulus is added, the pair should break below 1.2300. The movement is slightly bearish. Support is found at 1.2300 and resistance is at 1.2445.
GBP/USD
On Wednesday, the GBP/USD increased slightly but once the price reached 1.57200, it reversed down. The British pound appreciated following the Autumn statement. George Osborne upgraded the economic growth forecast to 3% from 2.7%. However, he stated that the deficit has remained high but is declining. The overall sentiment of the report was hawkish which pulled the pair up. Gains were limited, however, as the U.S Dollar also strengthened.
Today, traders should pay attention to the U.K. Official Bank rate. If the ECB decides to add monetary stimulus it will most likely push the British pound down as well. The movement is sideways. Support is found at 1.5600 and resistance at 1.5780.
Related Posts: