Coming Up Today (All times GMT)
- 9:30am GBP CPI
- 10:00am EUR German ZEW Economic Sentiment
- 1:30pm CAD Trade Balance
- 2:00pm CAD Overnight Rate
The US Dollar from Monday evening and until now has been in a correction across the board against the most of its counterparts. Janet Yellen and William Dudley, said on Monday that the US central bank should stay stick to its super-easy monetary policy, arguing that inflation is not a threat and unemployment remains too high. The greenback found support yesterday against a basket of major currencies after plumbing to 16-month low. The US dollar versus the Japanese Yen has been in a corrective mood after a rally the last week. The Japanese currency is on a slippery slope and the Japan’s central bank ultra easing policy has made the yen the funding currency of choice in carry trades. Against the Swiss Franc the US dollar is in a downtrend making new lows down to the 0.9018 support level and it was lastly seen at the 0.9040. The Australian is in an uptrend from the previous week and created a solid resistance at the 1.0582 on Monday and today is pulling back, it was lastly seen at the 1.0424.
EURUSD
The EURUSD forex pair early on Tuesday is correcting from the new highs that did on the previous trading sessions, however the uptrend persist and a reversal indication is not yet seen. Interest rates differentials between the Euro and the US Dollar are expected to continue to support the common currency following the ECB’s decision to increase rates by 25 basis points. Analysts say the sentiment is extremely bearish for the USD, Commodities Futures Trading Commission’s latest report showed that all currencies are net long against the USD except the JPY currency. The Euro is now trading at 1.4387 with the 1.4421 being a solid resistance level and the 1.4349 expected to hold the short term downtrend.
Support/Resistance 1.4349/1.4421
GBPUSD
The cable was up to a new high since January 2010 and is now indicating a reversal at the short-term trend. The forex pair has penetrated the 1.6315 support level, now resistance and is now trading at the 1.6292 level, while the 1.6254 support level is expected to hold the prices. Andrew Sentance member at the Monetary Policy Committee said on Sunday that BOE should raise interest rates gradually to fight back the rising commodity prices, a falling pound, a stronger global economic recovery and the wages increase.
Support/Resistance: 1.6254/1.6315
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