The EUR/USD opened the week at 1.2620 and during the Asian session the pair almost climbed to 1.2700. The pair reacted to a dovish speech from the vice-chairman of the Fed, Stanley Fischer, who spoke at a panel discussion during the International Monetary Fund meeting. He spoke about the worsening global outlook and stated that based on this, the Fed will be unlikely to increase interest rates soon. Mario Draghi, the President of the European Central Bank also provided a dovish statement and re asserted his readiness to expand the balance sheet by 1 trillion Euros if needed.
Volatility should remain low today as the U.S. market will remain closed for Columbus Day. The movement is sideways. Support is found at 1.2600 and resistance at 1.2700.
The GBP/USD rose during the Asian session but as the European session started, bearish sentiment entered the market and the pair retraced 50% of its previous gains. On Friday, Britain’s right wing, anti EU, independence party won its first elected seat in the British parliament by a huge margin. The party came close to winning a second seat and this could cause the British Pound to decline. If the possibility of the UK withdrawing from the EU increases further, the pair could easily slide down to 1.2500.
The movement is slightly bearish. Support is found at 1.6000 and resistance at 1.6225.
October 13, 2014 – Forex News
Hot Asset for Today: EUR/USD
EUR/USD
The EUR/USD opened the week at 1.2620 and during the Asian session the pair almost climbed to 1.2700. The pair reacted to a dovish speech from the vice-chairman of the Fed, Stanley Fischer, who spoke at a panel discussion during the International Monetary Fund meeting. He spoke about the worsening global outlook and stated that based on this, the Fed will be unlikely to increase interest rates soon. Mario Draghi, the President of the European Central Bank also provided a dovish statement and re asserted his readiness to expand the balance sheet by 1 trillion Euros if needed.
Volatility should remain low today as the U.S. market will remain closed for Columbus Day. The movement is sideways. Support is found at 1.2600 and resistance at 1.2700.
GBP/USD
The GBP/USD rose during the Asian session but as the European session started, bearish sentiment entered the market and the pair retraced 50% of its previous gains. On Friday, Britain’s right wing, anti EU, independence party won its first elected seat in the British parliament by a huge margin. The party came close to winning a second seat and this could cause the British Pound to decline. If the possibility of the UK withdrawing from the EU increases further, the pair could easily slide down to 1.2500.
The movement is slightly bearish. Support is found at 1.6000 and resistance at 1.6225.
Related Posts: