Despite the very important Meeting Minutes report the EUR/USD pair did not move significantly. The pair remained between 1.3725 and 1.3765 the whole day. The pair traded around 1.3765 before the FOMC Meeting Minutes report where traders expected some changes to monetary policy with respect to weaker U.S. data. When the report came out the pair dropped to 1.3725 but reversed and has now erased that drop. The report was quite mixed. The Unemployment rate might reach its target soon (the target is 6.5% and the current rate is 6.6%) which means that the Fed should increase their interest rates afterwards. However, the Unemployment rate is not the only labor market indicator and the others (e.g. Non-farm payrolls) have been coming out worse-than-expected. The pace of tapering the monetary stimulus should remain the same. This information should be more positive for the 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.
Contrastongly to the EUR/USD, the GBP/USD pair moved significantly. 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 expectations 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 moved higher before the FOMC Meeting Minutes report and reached 102.45 level. Due to mixed sentiment the pair then started to range and as the Chinese HSBC Flash Manufacturing PMI came out the pair fell to 101.75. Then Yen, as a safe-haven currency, has always benefited from signs of a weaker Chinese economy. The pair might now bounce at 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
Despite the very important Meeting Minutes report the EUR/USD pair did not move significantly. The pair remained between 1.3725 and 1.3765 the whole day. The pair traded around 1.3765 before the FOMC Meeting Minutes report where traders expected some changes to monetary policy with respect to weaker U.S. data. When the report came out the pair dropped to 1.3725 but reversed and has now erased that drop. The report was quite mixed. The Unemployment rate might reach its target soon (the target is 6.5% and the current rate is 6.6%) which means that the Fed should increase their interest rates afterwards. However, the Unemployment rate is not the only labor market indicator and the others (e.g. Non-farm payrolls) have been coming out worse-than-expected. The pace of tapering the monetary stimulus should remain the same. This information should be more positive for the 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.
Contrastongly to the EUR/USD, the GBP/USD pair moved significantly. 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 expectations 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 moved higher before the FOMC Meeting Minutes report and reached 102.45 level. Due to mixed sentiment the pair then started to range and as the Chinese HSBC Flash Manufacturing PMI came out the pair fell to 101.75. Then Yen, as a safe-haven currency, has always benefited from signs of a weaker Chinese economy. The pair might now bounce at 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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