The euro rose for a second month in a row against the the dollar last on Friday mainly due to U.S data being adjusted, however this is being seen as a temporary effect of the bad weather the U.S is currently experiencing. The U.S data that has recently come out, although has not been to the outright detriment of the the dollar, it has not been good enough to indicate any further acceleration of tapering quantitative easing nor any suggestion of when U.S benchmark interest rates may be increased. It is also important to note that the small rise in European Union inflation clearly minimized the risk of forseeable new ECB easing, thus giving the euro an upward direction push on Friday. There are a number of events that may influence the pairing today. Namely Spanish Manufacturing PMI 10.15am GMT, Italian Maufacturing PMI 08.45AM GMT, EU final Manufacturing PMI 09.00AM GMT and ECB President Draghi speaks at 2.00PM GMT. The EUR/USD has a support level of 1.3750 and a resistance 1.3820
British Pound rose higher against the U.S. Dollar on Friday also due to U.S data softening reiterating concerns the Federal Reserve may take a longer time in view of further reductions to its asset purchase program. GBP also closed higher on Friday after the Nationwide housing prices in the U.K. rose for the 14th straight month by 0.6% (MoM) in February, broadly in-line with market estimates, but slightly slower than a 0.8% rise recorded in the preceding month. Earlier last week, Fed Chairwoman Janet Yellen confirmed recent weakness in U.S. data, saying it reflects softness in the economy. In testimony to the Senate banking committee in Washington, Ms. Yellen said it was hard to say how much the recent soft data was due to weather and added that the bank would be attentive to signals on whether the recovery is progressing in line with expectations. Traders are expected to keep a close eye on the U.K.’s Market manufacturing PMI, Consumer credit, Mortgage approvals and Net lending to individuals data, scheduled for release later today at 09.30AM GMT. The pair is expected to find support at 1.6630, and a resistance of 1.6760.
The pairing declined to two-week lows against the yen on Friday after data showed that U.S. fourth quarter growth was altered down, while concerns in Ukraine and a weaker Chinese yuan also supported safe haven demand for the yen. Traders pushed the Japanese yen higher due to safe haven trading as tensions mount in the Crimea with the Russian entering the Ukraine.
The test for the Japanese yen today and going forward will be Prime Minister Shinzo Abe’s “Abenomics” policies and the Bank of Japan will be steering the nation through the aftermath, with the economy set to contract for a quarter and analysts projecting that BOJ Gov. Haruhiko Kuroda will be forced to add to already unprecedented easing. The pair is currently bearish due to tension in Ukraine as the Yen benefits as a safe-haven asset. Financial events in Japan today is the release of data on Capital spending. The pair is expected to find support at 101.20, and a resistance of 102.20.
March 03, 2014 – Forex News
Hot Asset For Today: EUR/USD
The euro rose for a second month in a row against the the dollar last on Friday mainly due to U.S data being adjusted, however this is being seen as a temporary effect of the bad weather the U.S is currently experiencing. The U.S data that has recently come out, although has not been to the outright detriment of the the dollar, it has not been good enough to indicate any further acceleration of tapering quantitative easing nor any suggestion of when U.S benchmark interest rates may be increased. It is also important to note that the small rise in European Union inflation clearly minimized the risk of forseeable new ECB easing, thus giving the euro an upward direction push on Friday.
There are a number of events that may influence the pairing today. Namely Spanish Manufacturing PMI 10.15am GMT, Italian Maufacturing PMI 08.45AM GMT, EU final Manufacturing PMI 09.00AM GMT and ECB President Draghi speaks at 2.00PM GMT. The EUR/USD has a support level of 1.3750 and a resistance 1.3820
British Pound rose higher against the U.S. Dollar on Friday also due to U.S data softening reiterating concerns the Federal Reserve may take a longer time in view of further reductions to its asset purchase program. GBP also closed higher on Friday after the Nationwide housing prices in the U.K. rose for the 14th straight month by 0.6% (MoM) in February, broadly in-line with market estimates, but slightly slower than a 0.8% rise recorded in the preceding month. Earlier last week, Fed Chairwoman Janet Yellen confirmed recent weakness in U.S. data, saying it reflects softness in the economy. In testimony to the Senate banking committee in Washington, Ms. Yellen said it was hard to say how much the recent soft data was due to weather and added that the bank would be attentive to signals on whether the recovery is progressing in line with expectations. Traders are expected to keep a close eye on the U.K.’s Market manufacturing PMI, Consumer credit, Mortgage approvals and Net lending to individuals data, scheduled for release later today at 09.30AM GMT. The pair is expected to find support at 1.6630, and a resistance of 1.6760.
The pairing declined to two-week lows against the yen on Friday after data showed that U.S. fourth quarter growth was altered down, while concerns in Ukraine and a weaker Chinese yuan also supported safe haven demand for the yen. Traders pushed the Japanese yen higher due to safe haven trading as tensions mount in the Crimea with the Russian entering the Ukraine.
The test for the Japanese yen today and going forward will be Prime Minister Shinzo Abe’s “Abenomics” policies and the Bank of Japan will be steering the nation through the aftermath, with the economy set to contract for a quarter and analysts projecting that BOJ Gov. Haruhiko Kuroda will be forced to add to already unprecedented easing. The pair is currently bearish due to tension in Ukraine as the Yen benefits as a safe-haven asset. Financial events in Japan today is the release of data on Capital spending. The pair is expected to find support at 101.20, and a resistance of 102.20.
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