On Monday, the EUR/USD declined and tested its support level at 1.1300. The pair reacted negatively to the German Ifo Business Climate data which came out worse-than-expected despite the fact that the European Central bank introduced additional monetary stimulus to spur the weak economy last month. Later in the session, however, the pair lost momentum and partially recovered upwards.
Today, high volatility is expected as several events will take place. Firstly, Greece will present its draft of reforms to the Eurogroup; this needs to be approved for Friday’s deal to be implemented. Secondly, Mario Draghi will be introducing the new 20 euro note at 2.00PM (GMT). This event should not affect the market but statements from the head of the ECB can shake the single currency. Thirdly, Fed chairman, Janet Yellen, will be testifying before the Senate Banking Committee. The movement is sideways. Support is found at 1.1270 and resistance at 1.1445.
Yesterday, the GBP/USD added 130 pips and returned to a 6-week high. As no positive data was released from the UK we can infer that the movement was connected to end of month trading and profit taking. Following disappointing U.S Existing Home Sales data, the pair reached a high of 1.5460.
Today, investors should pay attention to the UK Inflation report hearings which are scheduled for 10.00AM (GMT). At 3.00PM (GMT) U.S. CB Consumer Confidence data will be released and is expected to show a lower figure than seen in January. Fed chairman, Janet Yellen, will also be testifying on the Semiannual Monetary Policy Report. Support is found at 1.5330 and resistance at 1.5480.
February 24, 2015 – Forex
Hot asset for today: EUR/USD
EUR/USD
On Monday, the EUR/USD declined and tested its support level at 1.1300. The pair reacted negatively to the German Ifo Business Climate data which came out worse-than-expected despite the fact that the European Central bank introduced additional monetary stimulus to spur the weak economy last month. Later in the session, however, the pair lost momentum and partially recovered upwards.
Today, high volatility is expected as several events will take place. Firstly, Greece will present its draft of reforms to the Eurogroup; this needs to be approved for Friday’s deal to be implemented. Secondly, Mario Draghi will be introducing the new 20 euro note at 2.00PM (GMT). This event should not affect the market but statements from the head of the ECB can shake the single currency. Thirdly, Fed chairman, Janet Yellen, will be testifying before the Senate Banking Committee. The movement is sideways. Support is found at 1.1270 and resistance at 1.1445.
GBP/USD
Yesterday, the GBP/USD added 130 pips and returned to a 6-week high. As no positive data was released from the UK we can infer that the movement was connected to end of month trading and profit taking. Following disappointing U.S Existing Home Sales data, the pair reached a high of 1.5460.
Today, investors should pay attention to the UK Inflation report hearings which are scheduled for 10.00AM (GMT). At 3.00PM (GMT) U.S. CB Consumer Confidence data will be released and is expected to show a lower figure than seen in January. Fed chairman, Janet Yellen, will also be testifying on the Semiannual Monetary Policy Report. Support is found at 1.5330 and resistance at 1.5480.
Related Posts: