On Wednesday, the EUR/USD broke through two support lines and reached its lowest price since August 2003 at 1.1060. The pair only partially reacted to important U.S. data which came out yesterday. The ADP Non-farm employment change, which is considered to be a good predictor for Friday’s Non-farm payrolls, showed 212K newly employed people instead of the expected 219K. On the other hand, ISM Non-Manufacturing PMI data showed a slightly better figure than expected.
The market seems to be ignoring data ahead of today’s ECB meeting. Traders are hoping to receive information regarding how the bank will implement its quantitative easing program which was introduced in January. A long-term forecast issued a month ago predicted that the pair could drop as low as 1.10 due to the monetary stimulus. The movement is bearish. Support is found at 1.1050 and resistance at 1.1150.
The GBP/USD erased more than 100 pips and declined from 1.5370 to its current level of 1.5250. The pair came under pressure as U.S. labour data was released. Despite the fact that the ADP Non-farm employment change was slightly lower than expected (212.000 instead of 219.000), traders began to speculate that Friday’s Non-farm payrolls data will be strong as, the previous figure was upgraded to 250k from 213k. This optimism sparked hopes that the Fed will consider the interest rate hike in June.
Today, the UK will release their Interest Rate decision and although we do not expect any changes the MPC Rate Statement usually provides hints about future monetary policy so the release could affect the British pound. The trend is slightly bearish. Support is found at 1.5210 and resistance at 1.5305.
March 5, 2015 – Forex News
Hot asset for today: EUR/USD
EUR/USD
On Wednesday, the EUR/USD broke through two support lines and reached its lowest price since August 2003 at 1.1060. The pair only partially reacted to important U.S. data which came out yesterday. The ADP Non-farm employment change, which is considered to be a good predictor for Friday’s Non-farm payrolls, showed 212K newly employed people instead of the expected 219K. On the other hand, ISM Non-Manufacturing PMI data showed a slightly better figure than expected.
The market seems to be ignoring data ahead of today’s ECB meeting. Traders are hoping to receive information regarding how the bank will implement its quantitative easing program which was introduced in January. A long-term forecast issued a month ago predicted that the pair could drop as low as 1.10 due to the monetary stimulus. The movement is bearish. Support is found at 1.1050 and resistance at 1.1150.
GBP/USD
The GBP/USD erased more than 100 pips and declined from 1.5370 to its current level of 1.5250. The pair came under pressure as U.S. labour data was released. Despite the fact that the ADP Non-farm employment change was slightly lower than expected (212.000 instead of 219.000), traders began to speculate that Friday’s Non-farm payrolls data will be strong as, the previous figure was upgraded to 250k from 213k. This optimism sparked hopes that the Fed will consider the interest rate hike in June.
Today, the UK will release their Interest Rate decision and although we do not expect any changes the MPC Rate Statement usually provides hints about future monetary policy so the release could affect the British pound. The trend is slightly bearish. Support is found at 1.5210 and resistance at 1.5305.
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