EUR/USD Turned To Bullish Due Obama’s Statement

The EUR/USD has climbed today after yesterday’s decision by the FOMC to keep the interest rate unchanged. Though the pair dropped when the information was published, it immediately retraced its losses and climbed higher. Today, the main source of decline for dollar has been speculation that President Obama may order military strikes in Iraq – an action which could exacerbate tension in the region and push the pair down. However, there will be more information that could affect the EUR/USD later today. At 12:30 GMT, Initial Jobless claims for the US will be published followed by the Philadelphia Fed manufacturing index at 14:00 GMT. Look for support at 1.3512 and resistance at a. 3621.

  

The USD/JPY has fallen for the same reasons the EUR/USD has been rising: the dollar. Due to possible US intervention in Iraq, traders are getting worried that situation in the Middle East could worsen and are look for safe haven assets. The yen is often a destination for those fleeing conflict, and so not only has the dollar fallen, but the yen is rising – despite worse than expected Japanese All Industries Activity Index data. Thus, the pair seems poised to continue its fall until geopolitical anxiety subsides or US data alter today alter the dollar’s trajectory. Look for support at 101.60 and resistance at 102.35.