The EUR/USD pair broke its support yesterday after the American session started. The pair was driven by expectation that the Fed will continue to scale back its monetary stimulus. At 7.00PM (GMT) the statement was released and confirmed the widely expected result that the Fed would reduce the stimulus by another $10 billion/month to $65 billion/month. The pair did not react as much as expected and only slightly decreased meaning this news was already priced into the market. Today we should watch the German Unemployment Change at 8.55AM (GMT) but we should be more concerned about the U.S. GDP release at 1.30PM (GMT). If the data comes out better than expected the pair might fall below 1.3600. The sentiment is slightly bearish. The support is lying at 1.3580 and resistance at 1.3685.
The USD/JPY pair fell yesterday despite the fact the U.S. Dollar strengthened before the actual FOMC statement. The Yen benefited from softer demand for riskier assets and pushed the pair down from 103.35 to 101.90. This weakening of the pair is expected to only be short-term and on a longer-term perspective analysts see the pair picking up. The pair then slightly corrected its fall but returned to the 102.45 area. Today the pair will be affected by the U.S. GDP at 1.30PM (GMT). Traders should also closely watch the Japanese CPI index which will be released at 11.30PM (GMT). The support is lying at 101.90 and resistance at 103.55.
The GBP/USD pair declined from 1.6600 to 1.6550 during yesterday’s American session. The pair reacted to the strengthening Greenback but did not manage to slide all the way to its support at 1.6510. The Fed’s decision was widely expected and already priced in. Today more U.S. data we might see the pair finally breaking through its support if U.S. GDP data is strong. The movement is sideways with support at 1.6510 and resistance at 1.6620.
January 30, 2014 – Forex News
Hot asset for today: EUR/USD
The EUR/USD pair broke its support yesterday after the American session started. The pair was driven by expectation that the Fed will continue to scale back its monetary stimulus. At 7.00PM (GMT) the statement was released and confirmed the widely expected result that the Fed would reduce the stimulus by another $10 billion/month to $65 billion/month. The pair did not react as much as expected and only slightly decreased meaning this news was already priced into the market. Today we should watch the German Unemployment Change at 8.55AM (GMT) but we should be more concerned about the U.S. GDP release at 1.30PM (GMT). If the data comes out better than expected the pair might fall below 1.3600. The sentiment is slightly bearish. The support is lying at 1.3580 and resistance at 1.3685.
The USD/JPY pair fell yesterday despite the fact the U.S. Dollar strengthened before the actual FOMC statement. The Yen benefited from softer demand for riskier assets and pushed the pair down from 103.35 to 101.90. This weakening of the pair is expected to only be short-term and on a longer-term perspective analysts see the pair picking up. The pair then slightly corrected its fall but returned to the 102.45 area. Today the pair will be affected by the U.S. GDP at 1.30PM (GMT). Traders should also closely watch the Japanese CPI index which will be released at 11.30PM (GMT). The support is lying at 101.90 and resistance at 103.55.
The GBP/USD pair declined from 1.6600 to 1.6550 during yesterday’s American session. The pair reacted to the strengthening Greenback but did not manage to slide all the way to its support at 1.6510. The Fed’s decision was widely expected and already priced in. Today more U.S. data we might see the pair finally breaking through its support if U.S. GDP data is strong. The movement is sideways with support at 1.6510 and resistance at 1.6620.
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