Fundamentals: We have a few announcements today which will affect the market.
Coming from U.K we have the “Inflation Report Hearings”. Another announcement is coming from Germany and it is about the “German ZEW Economic Sentiment” The previous announcement was 56.1 and the forecast for today is 59.9. (9:00 GMT).
A few more announcement are coming in from US . Those are “Core Retail sales” The previous announcement was -0.6% and the forecast for today is 0.4%. The second is going to be covering the “PPI mm” The previous announcement was -0.9% and the forecast for today is 0.9%. Finally the “Retail Sales m/m“ which will be released at 12:30 GMT. The previous announcement was -0.1% and the forecast for today is 1.9%. Also at (14:00 GMT) we have the Fed Chairman Bernanke Speaking.
EUR/USD
Let’s start analyzing this fascinating couple. The earlier preview over this pair indicated an uptrend for the EUR. It appears we took the profit from yesterday move big time. The EUR continues to strengthen and you can clearly view that over a daily chart.
After a strong uptrend move around 137 pips, the EUR/USD has bounced at 1.4515 to A new levels close to 1.4652. Currently the pair is trading around 1.4647 to 1.4591. Over a daily chart, it is important to note that there is a strong support for the USD at the 1.4600 line.
From a fundamental point of view Barack Obama called yesterday for Congress to tighten the supervision of Wall Street warned the financial community about reckless behavior that could result to another meltdown. President Obama also cautioned about the risks that could lead to a BS Pal “information, similar to that of 1930s. President Obama also said that the US financial system was crashing a year ago with the bankruptcy of Lehman brothers and today the US economy is a recovery mode. President Obama also indicated that he expects jobless claims to start declining and see more jobs created in the US over the coming months.
Let’s translate yesterday movements to money!
Resistances-1.4650 – 1.4690
Supports-1.4600 – 1.4515
USD/CHF
It appears the last few days the Swiss franc is moving in a clear downtrend.
Today we saw some negative announcement coming from Switzerland as well. The forecast for the “Core Retail sales” was 7.8% and it came out only at 2.7%. That is the clear explanation for why the SWISSY is in a downtrend at the moment. The support and the resistances lines are the main tools to keep tracking this pair as the day continues. We will also look forward for the announcements coming from the US later today that could effect this pair more.
Resistances – 1.0360 – 1.0425
Supports – 1.0325 – 1.0290
