By HotForex | Daily Forex Analysis | Thu, Apr 19, 2012
Yesterday EURUSD was a roller coaster dropping to levels around 1.3060
and then returning back above 1.3100 reaching 1.3136. The Current
Account deficit in the Eurozone unexpectedly showed deficit. In addition
the Construction output fell 7.1 percent m/m in February. Series of
leaders or European countries made statements yesterday as well. The
Portuguese Prime Minister Pedro Passos Coelho stated that the time frame
for the nation to return to international capital markets following its
bailout might be delayed to September 2013.
Nicolas Sarkozy, the French President stated that Euro’s exchange rate against the dollar must be discussed with the European Central Bank, because the current rate makes the Euro too expensive and it hurts the exporters. On top of that the Italian Prime Minister, Mario Monti warned that a deeper than expected recession would mean the country would miss its pledge to balance the budget by two years. Today we have the Spanish 10 year Bond Auction from the Eurozone scheduled and this combined with the G-20 Meetings and the releases due from the United States may cause volatility on the market. Support for the EURUSD is seen at 1.3063 and resistance is seen at 1.3170. The Inside View indicator on HotForex shows that 55 percent of the traders are short on the EURUSD.
Nicolas Sarkozy, the French President stated that Euro’s exchange rate against the dollar must be discussed with the European Central Bank, because the current rate makes the Euro too expensive and it hurts the exporters. On top of that the Italian Prime Minister, Mario Monti warned that a deeper than expected recession would mean the country would miss its pledge to balance the budget by two years. Today we have the Spanish 10 year Bond Auction from the Eurozone scheduled and this combined with the G-20 Meetings and the releases due from the United States may cause volatility on the market. Support for the EURUSD is seen at 1.3063 and resistance is seen at 1.3170. The Inside View indicator on HotForex shows that 55 percent of the traders are short on the EURUSD.
GBPUSD
The Great British Pound strengthened after the positive
UK Unemployment data and the Cable traded higher yesterday reaching the
levels above the psychological level at 1.60. The minutes of the Bank
of England’s Monetary Policy Committee meeting released indicated that
Adam Posen and the majority of panel’s members had voted to leave the
size bond-buying program unchanged at 325 billion pounds. The UK
claimant count change rose by 3,600 in March, lower compared to the rise
of 4,500 in February. Support for the GBPUSD is seen at 1.5918 and
resistance is seen at 1.6040. The Inside View indicator on HotForex
shows that 82 percent of the traders are short on the GBPUSD.
USDCHF
The SNB finally has a President. Thomas Jordan was
named as the full-time head of the Swiss National Bank. USDCHF rose
yesterday reaching levels around 0.9208. The ZEW expectations survey
rose to 2.1 in April. The pair is currently trading at 0.9168 lower than
the highs reached during yesterday’s session. Support for the USDCHF is
seen at 0.9140 and resistance is seen at 0.9210. The Inside View
indicator on HotForex shows that 53 percent of the traders are short on
the USDCHF.
USDJPY
USDJPY trading higher following the Trade Deficit release from Japan. Reports showed that merchandise trade balance in Japan showed a deficit of 82.55 billion Yen in March. The Deputy Governor of Bank of Japan Kiyohiko Nishimura stated that BoJ is committed to implementing additional easing measures, if deemed necessary. Support for the USDJPY is seen at 80.86 and resistance is seen at 81.55. The Inside View indicator on HotForex shows that 69 percent of the traders are short on the USDJPY.
Important releases and events
EUR: Spanish 10-y Bond Auction
GBP: MPC Member Posen Speaks
USD: Unemployment Claims; Existing Home Sales; Philly Fed Manufacturing Index
G20 Meetings Day 1