The euro edged slightly lower against the dollar yesterday despite a solid German Business sentiment report. The euro gained some support after the German IFO said its business climate Index came in high. Although German firms are benefiting from high export demand, emerging market volatility concerns somewhat screens a positive outlook. The EU economic forecast report is due at 12.45 (GMT) which serves as an economic performance evaluation. And the CB Consumer Confidence Index coming out of the the US at 3.00pm (GMT) and will show an indication of consumer spending. Today EURUSD has support and resistance at 1.3685 and 1.3770 repsectively.
The GBP has shown some movement in both directions today, but has been unable to sustain any momentum. During the North American session, the pair was trading in the mid-1.66 range. On Friday, US Existing Home Sales looked weak, as the key indicator slumped to its lowest level since July 2012. There was little activity on Monday, as the sole US release, Flash Services PMI, slipped badly. US numbers continue to raise concerns. After weak releases from Building Permits and the Philly Manufacturing Index, Existing Home Sales sagged on Friday, dropping to 4.62 million in January, compared to 4.87 million a month earlier. This was well short of the estimate of 4.73 million, and the lowest reading from the key indicator since July 2012. The markets will be hoping for better news from the CB Consumer Confidence Index today at 3.00pm(GMT). The pair is moving sideways in the short-term but still holds a bearish bias as it continues to make lower lows every day, in the last six trading days. The GBP/USD has a support level of 1.6600 and a resistance level of 1.6670
The USD weakened marginally against the JPY and closed at 102.51.Yesterday, in Japan, Koichi Hamada, a key aide to Prime Minister, Shinzo Abe, suggested that the Bank of Japan should wait for more economic data due in summer before deciding whether to ease its monetary policy further. Furthermore, he reiterated uncertainty regarding the effects of the sale tax hike on the economy and asked the central bank to “examine the economy closely when economic data reflecting the tax hike come out.” USD/JPY was trading at 102.56, with the USD trading slightly higher from yesterday’s close. On the economic front, Japan’s corporate service price index rose 0.8% in January, less than market expectations for a 1.2% increase and compared to previous month’s rise of 1.1%. The pair is expected to find support at 102.17, and a fall through could take it to the next support level of 101.97. The pair is expected to find its first resistance at 102.95.
February 25, 2014 – Forex News
Today’s Hot Asset: EUR/USD
The euro edged slightly lower against the dollar yesterday despite a solid German Business sentiment report. The euro gained some support after the German IFO said its business climate Index came in high. Although German firms are benefiting from high export demand, emerging market volatility concerns somewhat screens a positive outlook. The EU economic forecast report is due at 12.45 (GMT) which serves as an economic performance evaluation. And the CB Consumer Confidence Index coming out of the the US at 3.00pm (GMT) and will show an indication of consumer spending. Today EURUSD has support and resistance at 1.3685 and 1.3770 repsectively.
The GBP has shown some movement in both directions today, but has been unable to sustain any momentum. During the North American session, the pair was trading in the mid-1.66 range. On Friday, US Existing Home Sales looked weak, as the key indicator slumped to its lowest level since July 2012. There was little activity on Monday, as the sole US release, Flash Services PMI, slipped badly. US numbers continue to raise concerns. After weak releases from Building Permits and the Philly Manufacturing Index, Existing Home Sales sagged on Friday, dropping to 4.62 million in January, compared to 4.87 million a month earlier. This was well short of the estimate of 4.73 million, and the lowest reading from the key indicator since July 2012. The markets will be hoping for better news from the CB Consumer Confidence Index today at 3.00pm(GMT). The pair is moving sideways in the short-term but still holds a bearish bias as it continues to make lower lows every day, in the last six trading days. The GBP/USD has a support level of 1.6600 and a resistance level of 1.6670
The USD weakened marginally against the JPY and closed at 102.51.Yesterday, in Japan, Koichi Hamada, a key aide to Prime Minister, Shinzo Abe, suggested that the Bank of Japan should wait for more economic data due in summer before deciding whether to ease its monetary policy further. Furthermore, he reiterated uncertainty regarding the effects of the sale tax hike on the economy and asked the central bank to “examine the economy closely when economic data reflecting the tax hike come out.” USD/JPY was trading at 102.56, with the USD trading slightly higher from yesterday’s close. On the economic front, Japan’s corporate service price index rose 0.8% in January, less than market expectations for a 1.2% increase and compared to previous month’s rise of 1.1%. The pair is expected to find support at 102.17, and a fall through could take it to the next support level of 101.97. The pair is expected to find its first resistance at 102.95.
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