The EUR/USD declined at the end of the week following the FOMC statement and Press conference. The statement itself was balanced but Yellen’s comments during the conference were taken as hawkish. She hinted that the rate hike could occur as soon as April 2015 but will remain dependent on data. European data showed slight improvement but reaction was muted in the market.
Today, the pair is trading choppy after the Dollar weakened slightly. Volatility is expected to be subdued as many investors are taking their holiday vacations early. Traders should watch the Existing Home Sales data being released from the U.S at 3PM (GMT). The expectation is to see a slightly lower figure than last month but if it exceeds expectations the Dollar could regain its losses. The movement is sideways. Support is found at 1.2200 and resistance at 1.2300.
The GBP/USD bounced off its support level at 1.5540 and closed the week around 1.5630. The climb was supported by UK Retail Sales daToday’s ta which showed a 1.6% increase over the past month and a 6.4% increase over the past year.
Today, the pair is still ranging around 1.5630. The Dollar is trading near a 5 year high as investors believe that interest rates could be raised during the first half of next year. Low volatility is expected but traders should focus on U.S. Existing Home Sales data, being released at 3PM (GMT). Cable traders should also focus on a range of data from the UK tomorrow including GDP and Mortgage Approvals. The movement is sideways. Support is found at 1.5540 and resistance at 1.5680.
December 22, 2014 – Forex News
Hot Asset for Today: EUR/USD
EUR/USD
The EUR/USD declined at the end of the week following the FOMC statement and Press conference. The statement itself was balanced but Yellen’s comments during the conference were taken as hawkish. She hinted that the rate hike could occur as soon as April 2015 but will remain dependent on data. European data showed slight improvement but reaction was muted in the market.
Today, the pair is trading choppy after the Dollar weakened slightly. Volatility is expected to be subdued as many investors are taking their holiday vacations early. Traders should watch the Existing Home Sales data being released from the U.S at 3PM (GMT). The expectation is to see a slightly lower figure than last month but if it exceeds expectations the Dollar could regain its losses. The movement is sideways. Support is found at 1.2200 and resistance at 1.2300.
GBP/USD
The GBP/USD bounced off its support level at 1.5540 and closed the week around 1.5630. The climb was supported by UK Retail Sales daToday’s ta which showed a 1.6% increase over the past month and a 6.4% increase over the past year.
Today, the pair is still ranging around 1.5630. The Dollar is trading near a 5 year high as investors believe that interest rates could be raised during the first half of next year. Low volatility is expected but traders should focus on U.S. Existing Home Sales data, being released at 3PM (GMT). Cable traders should also focus on a range of data from the UK tomorrow including GDP and Mortgage Approvals. The movement is sideways. Support is found at 1.5540 and resistance at 1.5680.
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