The euro climbed higher against the dollar on Friday, as the dollar declined following a rally in the previous two sessions, namely due to prospects for an earlier than anticipated rate hike by the Federal Reserve. The euro was strengthened after data on Friday showed that the region’s current account surplus rose to a record €25.3 billion in January. A separate report showed that euro zone consumer confidence improved more than expected in March. Demand for the dollar continued to be underpinned by speculation that the U.S. central bank could raise rates as soon as early next year. Today investors will be looking ahead to Euro zone data on private sector activity and preliminary inflation data from Germany will also be in focus. The financial events to look out for today are French Flash Manufacturing PMI at 8.00am GMT, German Flash Manufacturing PMI at 8.30 GMT. Today EUR/USD has support of 1.3740 and resistance of 1.3840.
GBP/USD
The pound ended the week close to five-week lows against the dollar on Friday as growing expectations that the Federal Reserve could raise interest rates sooner than anticipated supported the dollar. The dollar rallied on after last weeks announcement by Fed Chair Janet Yellen who indicated that the bank could begin to raise interest rates about six months after its bond-buying program winds up, which is expected to happen this fall. The comments prompted investors to bring forward expectations for a rate hike to as soon as March of next year. The Fed also reduced its monthly bond purchases by an additional $10 billion to $55 billion at the conclusion of its two-day policy meeting, and said there was “underlying strength in the broader economy. Today investors will be looking ahead to the U.S. to release preliminary data on manufacturing activity. Today GBP/USD has a support of 1.6400 and a resistance of 1.6640
USD/JPY
The dollar slipped lower against the yen on Friday as fresh tensions between the West and Russia over Ukraine bolstered safe haven demand for the Japanese currency.Caution returned to markets as the political standoff between the West and Russia following the annexation of Crimea escalated, after the U.S. imposed harsher sanctions on Moscow. The European Union also agreed to wider sanctions against Russia on Friday, fanning concerns over the impact on global growth. Meanwhile in Japan, the Bank of Japan Governor, Haruhiko Kuroda stated that the central bank would continue with its massive monetary easing program as the economy has reached only half the way in its target to achieve 2% inflation target. Furthermore, he indicated that it would be premature to discuss the Bank of Japan’s exit from its stimulus measures even as it has number of tools to do so. Thus the pairing increased by 60 pips.The financial events to look out for today is Flash Manufacturing PMI at 1.45pm GMT. Today USD/JPY has support of 101.60 and resistance of 102.80
March 24, 2014 – Forex News
Hot Asset For Today: EUR/USD
EUR/USD
The euro climbed higher against the dollar on Friday, as the dollar declined following a rally in the previous two sessions, namely due to prospects for an earlier than anticipated rate hike by the Federal Reserve. The euro was strengthened after data on Friday showed that the region’s current account surplus rose to a record €25.3 billion in January. A separate report showed that euro zone consumer confidence improved more than expected in March. Demand for the dollar continued to be underpinned by speculation that the U.S. central bank could raise rates as soon as early next year. Today investors will be looking ahead to Euro zone data on private sector activity and preliminary inflation data from Germany will also be in focus. The financial events to look out for today are French Flash Manufacturing PMI at 8.00am GMT, German Flash Manufacturing PMI at 8.30 GMT. Today EUR/USD has support of 1.3740 and resistance of 1.3840.
GBP/USD
The pound ended the week close to five-week lows against the dollar on Friday as growing expectations that the Federal Reserve could raise interest rates sooner than anticipated supported the dollar. The dollar rallied on after last weeks announcement by Fed Chair Janet Yellen who indicated that the bank could begin to raise interest rates about six months after its bond-buying program winds up, which is expected to happen this fall. The comments prompted investors to bring forward expectations for a rate hike to as soon as March of next year. The Fed also reduced its monthly bond purchases by an additional $10 billion to $55 billion at the conclusion of its two-day policy meeting, and said there was “underlying strength in the broader economy. Today investors will be looking ahead to the U.S. to release preliminary data on manufacturing activity. Today GBP/USD has a support of 1.6400 and a resistance of 1.6640
USD/JPY
The dollar slipped lower against the yen on Friday as fresh tensions between the West and Russia over Ukraine bolstered safe haven demand for the Japanese currency.Caution returned to markets as the political standoff between the West and Russia following the annexation of Crimea escalated, after the U.S. imposed harsher sanctions on Moscow. The European Union also agreed to wider sanctions against Russia on Friday, fanning concerns over the impact on global growth. Meanwhile in Japan, the Bank of Japan Governor, Haruhiko Kuroda stated that the central bank would continue with its massive monetary easing program as the economy has reached only half the way in its target to achieve 2% inflation target. Furthermore, he indicated that it would be premature to discuss the Bank of Japan’s exit from its stimulus measures even as it has number of tools to do so. Thus the pairing increased by 60 pips.The financial events to look out for today is Flash Manufacturing PMI at 1.45pm GMT. Today USD/JPY has support of 101.60 and resistance of 102.80
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