Greenback Weakened As IMF Cut Economic Growth Forecast
June 17, 2014 6:30 am
June 17, 2014 – Forex News
Hot asset for today: EUR/USD
On Monday the EUR/USD pair first started in a bearish mood and almost touched the 1.3500 support, however lost momentum and reversed up. The main movement we saw around noon when the International Monetary Fund downgraded the prediction of U.S. economic growth. Previous 2.8% growth for this year was cut to 2.0%. The prediction for 2015 remains the same. The U.S. Dollar immediately depreciated against major peers and the EUR/USD pair climbed to 1.3590. During the Asian session the pair slightly decreased and currently is traded around 1.3560. Today we should keep an eye on German ZEW Economic Sentiment which will come out at 9.00AM (GMT). The previous data depicted decreasing trend where the index fell from 61.7 (January) to 33.1 (May). Today’s result is expected to come 35.2. At 12.30PM (GMT) the U.S. CPI data will be released. The movement is sideways. The support is lying at 1.3500 and resistance at 1.3600.
The GBP/USD pair sharply increased in past 4 days and added in total about 270 pips and reached the highest value since 2009 – 1.7010. The pair did not manage to stay in the area above 1.7000 and fell back down to current 1.6970. The pair will probably need more economic data to spur the price above the 1.7000 level which we might get today. At 8.30AM (GMT) the U.K. CPI will be announced and is expected to be 1.7%. At 12.30PM (GMT) the U.S. CPI will come out as well and should increase the volatility. The movement is sideways. The support is lying at 1.6940 and resistance at 1.7040.
June 17, 2014 – Forex News
Hot asset for today: EUR/USD
On Monday the EUR/USD pair first started in a bearish mood and almost touched the 1.3500 support, however lost momentum and reversed up. The main movement we saw around noon when the International Monetary Fund downgraded the prediction of U.S. economic growth. Previous 2.8% growth for this year was cut to 2.0%. The prediction for 2015 remains the same. The U.S. Dollar immediately depreciated against major peers and the EUR/USD pair climbed to 1.3590. During the Asian session the pair slightly decreased and currently is traded around 1.3560. Today we should keep an eye on German ZEW Economic Sentiment which will come out at 9.00AM (GMT). The previous data depicted decreasing trend where the index fell from 61.7 (January) to 33.1 (May). Today’s result is expected to come 35.2. At 12.30PM (GMT) the U.S. CPI data will be released. The movement is sideways. The support is lying at 1.3500 and resistance at 1.3600.
The GBP/USD pair sharply increased in past 4 days and added in total about 270 pips and reached the highest value since 2009 – 1.7010. The pair did not manage to stay in the area above 1.7000 and fell back down to current 1.6970. The pair will probably need more economic data to spur the price above the 1.7000 level which we might get today. At 8.30AM (GMT) the U.K. CPI will be announced and is expected to be 1.7%. At 12.30PM (GMT) the U.S. CPI will come out as well and should increase the volatility. The movement is sideways. The support is lying at 1.6940 and resistance at 1.7040.
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