The EUR/USD climbed above 1.2800 and is currently trading around 1.2820. The upwards movement continued as the U.S. Dollar depreciated further on the back of comments from FOMC members who have reduced speculation over an earlier hike in interest rates. In addition to this, the Fed President of St. Louis, James Bullard, stated that if inflation pressures are strong, the Fed could reconsider their plans to end the monetary stimulus and postpone it until next year.
High volatility is expected before this month’s FOMC meeting which will take place next week. Today, traders should pay attention to Existing Home Sales which will be released at 2PM (GMT). The movement is sideways. Support is found at 1.2700 and resistance is at 1.2840.
On Monday, the GBP/USD slightly increased and almost reached 1.6180. The pair reached a 12 day high as the market re-evaluated the earlier speculation over an interest rate hike. The expectation is that the U.K. may now increase interest rates earlier than the U.S and comes after a period of instability in Great Britain where we almost saw Scotland become an independent country.
Today we could see the pair continue with bullish sentiment before tomorrow’s report which will show how many monetary policy members voted in favour of raising interest rates. The trend is slightly bullish. Support is found at 1.6075 and resistance at 1.6225.
October 21, 2014 – Forex News
Hot asset for today: Gold
EUR/USD
The EUR/USD climbed above 1.2800 and is currently trading around 1.2820. The upwards movement continued as the U.S. Dollar depreciated further on the back of comments from FOMC members who have reduced speculation over an earlier hike in interest rates. In addition to this, the Fed President of St. Louis, James Bullard, stated that if inflation pressures are strong, the Fed could reconsider their plans to end the monetary stimulus and postpone it until next year.
High volatility is expected before this month’s FOMC meeting which will take place next week. Today, traders should pay attention to Existing Home Sales which will be released at 2PM (GMT). The movement is sideways. Support is found at 1.2700 and resistance is at 1.2840.
GBP/USD
On Monday, the GBP/USD slightly increased and almost reached 1.6180. The pair reached a 12 day high as the market re-evaluated the earlier speculation over an interest rate hike. The expectation is that the U.K. may now increase interest rates earlier than the U.S and comes after a period of instability in Great Britain where we almost saw Scotland become an independent country.
Today we could see the pair continue with bullish sentiment before tomorrow’s report which will show how many monetary policy members voted in favour of raising interest rates. The trend is slightly bullish. Support is found at 1.6075 and resistance at 1.6225.
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