The main currency pair EUR / USD is at the level of 1.385, making no significant movements in one direction or another. Lack of economic reports creates some conditions for this. Published today will be the Eurozone industrial production figures that are unlikely to generate much interest in the market, however today’s industrial production report for the eurozone will be closely watched for deciding if the on-off economic recovery is now back on again. Thus it is worthy of noting that a close eye should be kept on EURUSD, which has climbed sharply in recent weeks indicating a rally that’s drawing more attention as a potential headwind to growth in Europe. Regardless of the merits of that proposal, if today’s report is positive, which is likely, it’s going to be easier for the ECB president Mario Draghi and company to argue that Europe is at least moving in the right direction. In turn, there will be less pressure to cut rates or to launch a new easing policy.The financial event to look out for today is Industrial Production m/m 10.00AM (GMT). Today EUR/USD has support of 1.3835 and resistance of 1.3900.
There was a slight fall of GBP/USD to the detriment of the pound at yesterday’s trading after after the Bank of England Governor, Mark Carney dampened expectations for rate hike in the near future, to prevent the economy from overheating. He further hinted that the central bank would gradually raise its main interest rate from the current record low level over the next three years and added that the recovery in the nation would continue, without inflation moving higher. However, another Bank of England policymaker, Martin Weale, dissented with the Governor’s view and stated that “the best estimate of the amount of spare capacity in the economy is something under 1%.” Today GBP/USD has a support of 1.6600 and a resistance of 1.6655.
The USD/JPY pairing eased slightly downwards yesterday as the Japanese yen gained some some strength. Safe haven demand continued to be underpinned by worries over the outlook for China’s economy after data over the weekend. Bank of Japan governor Kuroda said he saw “no need for now to make adjustments to monetary policy” after a two-day meeting. “It was kind of expected but it is a confirmation from him that additional easing is not imminent,” a senior dealer at a major bank in Tokyo said. However, analysts expect the bank is holding back until it can assess the impact of a sales tax increase that is due to take effect next month and which some warn could impact the country’s economic recovery. Nomura Securities said in a note to clients that they believed the BoJ would “will engage in additional monetary easing in July”. The financial event to look out for today is Core Machinery Orders m/m at 11.50PM (GMT).
March 12, 2014 – Forex News
Hot Asset For Today: USD/JPY
The main currency pair EUR / USD is at the level of 1.385, making no significant movements in one direction or another. Lack of economic reports creates some conditions for this. Published today will be the Eurozone industrial production figures that are unlikely to generate much interest in the market, however today’s industrial production report for the eurozone will be closely watched for deciding if the on-off economic recovery is now back on again. Thus it is worthy of noting that a close eye should be kept on EURUSD, which has climbed sharply in recent weeks indicating a rally that’s drawing more attention as a potential headwind to growth in Europe. Regardless of the merits of that proposal, if today’s report is positive, which is likely, it’s going to be easier for the ECB president Mario Draghi and company to argue that Europe is at least moving in the right direction. In turn, there will be less pressure to cut rates or to launch a new easing policy.The financial event to look out for today is Industrial Production m/m 10.00AM (GMT). Today EUR/USD has support of 1.3835 and resistance of 1.3900.
There was a slight fall of GBP/USD to the detriment of the pound at yesterday’s trading after after the Bank of England Governor, Mark Carney dampened expectations for rate hike in the near future, to prevent the economy from overheating. He further hinted that the central bank would gradually raise its main interest rate from the current record low level over the next three years and added that the recovery in the nation would continue, without inflation moving higher. However, another Bank of England policymaker, Martin Weale, dissented with the Governor’s view and stated that “the best estimate of the amount of spare capacity in the economy is something under 1%.” Today GBP/USD has a support of 1.6600 and a resistance of 1.6655.
The USD/JPY pairing eased slightly downwards yesterday as the Japanese yen gained some some strength. Safe haven demand continued to be underpinned by worries over the outlook for China’s economy after data over the weekend. Bank of Japan governor Kuroda said he saw “no need for now to make adjustments to monetary policy” after a two-day meeting. “It was kind of expected but it is a confirmation from him that additional easing is not imminent,” a senior dealer at a major bank in Tokyo said. However, analysts expect the bank is holding back until it can assess the impact of a sales tax increase that is due to take effect next month and which some warn could impact the country’s economic recovery. Nomura Securities said in a note to clients that they believed the BoJ would “will engage in additional monetary easing in July”. The financial event to look out for today is Core Machinery Orders m/m at 11.50PM (GMT).
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