Yesterday, the EUR/USD pair dropped to 1.2460 but following mixed U.S. data the pair then slightly recovered up to 1.2490. During today’s Asian session saw a surprising increase ahead of the European Central Bank interest rate decision and press conference. Most analysts believe that Mario Draghi won’t introduce any major changes, however, he is still expected to be dovish which should send the single currency down. It is important to remember that the Bank of Japan’s decision to expand monetary stimulus was only expected by 2 out of 36 analysts and therefore, speculation is not always correct.
The interest rate will be released at 12.45 PM (GMT). The movement is slightly bearish. Support is found at 1.2440 and resistance is at 1.2540.1
On Wednesday, the GBP/USD dropped sharply to 1.5870. The decline was caused by the stronger U.S. dollar and disappointing U.K. Services PMI data which was the lowest value since June 2013. The result underlined the economic uncertainty in Britain which was a hot candidate to be the first G-7 country to increase interest rates. Last month we saw that the productivity gap between Britain’s and other G-7 countries widened the most since 1992.
Today at 12.00PM (GMT) the U.K. Assets Purchase Facility and Official bank rate will be released and will be followed by the MPC Rate statement. At 3.00PM (GMT) the U.K. NIESR GDP estimate will be announced and should increase volatility on the market. Remember that the U.S. Non-farm payrolls will be tomorrow! The trend is sideways. Support is found at 1.5870 and resistance at 1.6020.
November 6, 2014 – Forex News
Hot asset for today: EUR/USD
EUR/USD
Yesterday, the EUR/USD pair dropped to 1.2460 but following mixed U.S. data the pair then slightly recovered up to 1.2490. During today’s Asian session saw a surprising increase ahead of the European Central Bank interest rate decision and press conference. Most analysts believe that Mario Draghi won’t introduce any major changes, however, he is still expected to be dovish which should send the single currency down. It is important to remember that the Bank of Japan’s decision to expand monetary stimulus was only expected by 2 out of 36 analysts and therefore, speculation is not always correct.
The interest rate will be released at 12.45 PM (GMT). The movement is slightly bearish. Support is found at 1.2440 and resistance is at 1.2540.1
GBP/USD
On Wednesday, the GBP/USD dropped sharply to 1.5870. The decline was caused by the stronger U.S. dollar and disappointing U.K. Services PMI data which was the lowest value since June 2013. The result underlined the economic uncertainty in Britain which was a hot candidate to be the first G-7 country to increase interest rates. Last month we saw that the productivity gap between Britain’s and other G-7 countries widened the most since 1992.
Today at 12.00PM (GMT) the U.K. Assets Purchase Facility and Official bank rate will be released and will be followed by the MPC Rate statement. At 3.00PM (GMT) the U.K. NIESR GDP estimate will be announced and should increase volatility on the market. Remember that the U.S. Non-farm payrolls will be tomorrow! The trend is sideways. Support is found at 1.5870 and resistance at 1.6020.
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