Following weaker than expected German Inflation data, the EUR/USD dropped to 1.1885. The CPI index showed 0.0% instead of the expected increase of 0.1%. It is speculated that this will place additional pressure on the European Central Bank to change its monetary policy at the next meeting taking place at the end of January. During the American session, however, the U.S Dollar began to fall from its 9 year high as FOMC member, John Williams, stated that there is “no reason to rush tightening’. Although the statement was dovish and depreciated the Dollar slightly, the pair still remained well below 1.2000.
Today, traders should watch the U.S. ISM Non-Manufacturing PMI data which is expected to be slightly weaker than the previous reading. The movement is sideways. Support is found at 1.1860 and resistance at 1.1975.
During the European session, the GBP/USD declined and bounced off 1.5200. The fall was caused by weaker than expected U.K. Construction PMI data which came out at its lowest figure in one year. The pair then corrected slightly and returned back above 1.5220.
Today, U.K. Services PMI data will be released at 9.30AM (GMT). The indicator is expected to show the highest reading since September and if so, the pair should continue to trade with bullish sentiment and could test its resistance at 1.5320. However, U.S ISM Non-Manufacturing PMI data will be published at 3PM (GMT) and if this is also strong, the pair may trade sideways. The movement is sideways. Support is found at 1.5180 and resistance at 1.5320.
January 6, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
Following weaker than expected German Inflation data, the EUR/USD dropped to 1.1885. The CPI index showed 0.0% instead of the expected increase of 0.1%. It is speculated that this will place additional pressure on the European Central Bank to change its monetary policy at the next meeting taking place at the end of January. During the American session, however, the U.S Dollar began to fall from its 9 year high as FOMC member, John Williams, stated that there is “no reason to rush tightening’. Although the statement was dovish and depreciated the Dollar slightly, the pair still remained well below 1.2000.
Today, traders should watch the U.S. ISM Non-Manufacturing PMI data which is expected to be slightly weaker than the previous reading. The movement is sideways. Support is found at 1.1860 and resistance at 1.1975.
GBP/USD
During the European session, the GBP/USD declined and bounced off 1.5200. The fall was caused by weaker than expected U.K. Construction PMI data which came out at its lowest figure in one year. The pair then corrected slightly and returned back above 1.5220.
Today, U.K. Services PMI data will be released at 9.30AM (GMT). The indicator is expected to show the highest reading since September and if so, the pair should continue to trade with bullish sentiment and could test its resistance at 1.5320. However, U.S ISM Non-Manufacturing PMI data will be published at 3PM (GMT) and if this is also strong, the pair may trade sideways. The movement is sideways. Support is found at 1.5180 and resistance at 1.5320.
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