The EUR/USD broke through its resistance at 1.2500 and almost reached its second resistance at 1.2580. The first bullish impulse was caused by the Dollar which depreciated as investors began to buy safe haven assets, such as the Yen, and started to sell the Greenback. The second impulse was caused by German data which showed an impressive increase in economic sentiment; the reading was almost double the expected figure. The rally, however, was short term and the pair reversed, falling back below 1.2500 as speculation began before the FOMC statement which will be released at 7PM (GMT).
Traders should also watch the EU CPI data. The figure usually meets expectations but if it surprises, it could spark strong movement. The movement is sideways. Support is found at 1.2360 and resistance at 1.2520.
On Tuesday, the GBP/USD increased sharply and climbed from 1.5610 to 1.5780 in just a few hours. The pair was driven by the weaker dollar and sentiment remained bullish despite comments from Mark Carney, the governor of the BoE, that inflation will probably fall below 1% in the first half of 2015.
Today, the sentiment changed ahead of two important events. At 9.30AM (GMT) the U.K. Claimant Count Change and MPC Bank Rate Votes will be released. Later on, at 7.00PM (GMT) the U.S. FOMC statement will be published and the Fed could provide a hawkish outlook. The movement is sideways. Support is found at 1.5660 and resistance at 1.5800.
December 17, 2014 – Forex News
Hot asset for today: GBP/USD
EUR/USD
The EUR/USD broke through its resistance at 1.2500 and almost reached its second resistance at 1.2580. The first bullish impulse was caused by the Dollar which depreciated as investors began to buy safe haven assets, such as the Yen, and started to sell the Greenback. The second impulse was caused by German data which showed an impressive increase in economic sentiment; the reading was almost double the expected figure. The rally, however, was short term and the pair reversed, falling back below 1.2500 as speculation began before the FOMC statement which will be released at 7PM (GMT).
Traders should also watch the EU CPI data. The figure usually meets expectations but if it surprises, it could spark strong movement. The movement is sideways. Support is found at 1.2360 and resistance at 1.2520.
GBP/USD
On Tuesday, the GBP/USD increased sharply and climbed from 1.5610 to 1.5780 in just a few hours. The pair was driven by the weaker dollar and sentiment remained bullish despite comments from Mark Carney, the governor of the BoE, that inflation will probably fall below 1% in the first half of 2015.
Today, the sentiment changed ahead of two important events. At 9.30AM (GMT) the U.K. Claimant Count Change and MPC Bank Rate Votes will be released. Later on, at 7.00PM (GMT) the U.S. FOMC statement will be published and the Fed could provide a hawkish outlook. The movement is sideways. Support is found at 1.5660 and resistance at 1.5800.