The EUR/USD pair despite very important report which came out did not move significantly. The pair has remained between 1.3725 and 1.3765 the whole day. The pair was traded around 1.3765 before the FOMC Meeting Minutes report where traders expected some changes in the monetary policy with respect to weaker U.S. data. When the report came out the pair dropped to 1.3725 but reversed and till now has almost erased that drop. The report was quite mixed. The Unemployment rate might reach its target soon (6.5% target and the actual number is 6.6%) which means that Fed should increase their interest rates afterwards. However, the Unemployment rate is not the only one labor market indicator and the others (e.g. Non-farm payrolls) are coming out worse-than-expected. The pace of tapering monetary stimulus should remain the same. Those information should be more positive for U.S. Dollar but it seems that it is not enough for traders. Today we should watch the German Flash Manufacturing PMI at 8.30AM (GMT). At 1.30PM (GMT) the U.S. Inflation data will be released. The pair is moving sideways. The support is lying at 1.3690 and resistance at 1.3800.
Contrarily from EUR/USD, the GBP/USD pair was moving significantly. First before the U.K. labour data we saw some bullish speculation which pulled the price to 1.6730. However, the Unemployment rate came out slightly below expectation and that pushed the pair down to 1.6635 means almost 100 pips. The sentiment changed with worse-than-expected U.S. housing data and the pair climbed back up but fell after due to the FOMC report. Today at 11.00AM (GMT) the U.K. CBI Industrial Order Expectations index will be released and might be followed by higher volatility. At 1.30AM (GMT) we should pay attention to U.S. CPI data which is now expected to be 0.1% increase. The trend is slightly bearish. The support lying at 1.6635 and resistance at 1.6740.
The USD/JPY pair was moving up before FOMC Meeting Minutes report and reached 102.45 level. With mixed sentiment the pair then started to range and as the Chinese HSBC Flash Manufacturing PMI came out the pair fell to 101.75. Yen as a safe-haven currency has been always benefiting from the signs of weaker Chinese economy. The pair might now bounce on its support and partially recover the drop before the U.S. CPI data which will be released at 1.30PM (GMT). The trend is slightly bearish but might change as it is facing to reach its support. The support is lying at 101.75 and resistance at 102.70.
February 20, 2014 – Forex News
Hot asset for today: EUR/USD
The EUR/USD pair despite very important report which came out did not move significantly. The pair has remained between 1.3725 and 1.3765 the whole day. The pair was traded around 1.3765 before the FOMC Meeting Minutes report where traders expected some changes in the monetary policy with respect to weaker U.S. data. When the report came out the pair dropped to 1.3725 but reversed and till now has almost erased that drop. The report was quite mixed. The Unemployment rate might reach its target soon (6.5% target and the actual number is 6.6%) which means that Fed should increase their interest rates afterwards. However, the Unemployment rate is not the only one labor market indicator and the others (e.g. Non-farm payrolls) are coming out worse-than-expected. The pace of tapering monetary stimulus should remain the same. Those information should be more positive for U.S. Dollar but it seems that it is not enough for traders. Today we should watch the German Flash Manufacturing PMI at 8.30AM (GMT). At 1.30PM (GMT) the U.S. Inflation data will be released. The pair is moving sideways. The support is lying at 1.3690 and resistance at 1.3800.
Contrarily from EUR/USD, the GBP/USD pair was moving significantly. First before the U.K. labour data we saw some bullish speculation which pulled the price to 1.6730. However, the Unemployment rate came out slightly below expectation and that pushed the pair down to 1.6635 means almost 100 pips. The sentiment changed with worse-than-expected U.S. housing data and the pair climbed back up but fell after due to the FOMC report. Today at 11.00AM (GMT) the U.K. CBI Industrial Order Expectations index will be released and might be followed by higher volatility. At 1.30AM (GMT) we should pay attention to U.S. CPI data which is now expected to be 0.1% increase. The trend is slightly bearish. The support lying at 1.6635 and resistance at 1.6740.
The USD/JPY pair was moving up before FOMC Meeting Minutes report and reached 102.45 level. With mixed sentiment the pair then started to range and as the Chinese HSBC Flash Manufacturing PMI came out the pair fell to 101.75. Yen as a safe-haven currency has been always benefiting from the signs of weaker Chinese economy. The pair might now bounce on its support and partially recover the drop before the U.S. CPI data which will be released at 1.30PM (GMT). The trend is slightly bearish but might change as it is facing to reach its support. The support is lying at 101.75 and resistance at 102.70.
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