By HotForex | Daily Market Analysis | Mon, Mar 26, 2012
The Prime Minister of Italy Mario Monty warned that Spain has the potential to re-ignite the European Sovereign debt concerns as Spain’s 10-year bond yields climbed for a third straight week. The finance ministers of the Eurozone are set to meet in Copenhagen on March 30 to seek an agreement to lift the existing ceiling on bailout funding to create an even greater firewall. Last week the EURUSD remained in range. Even with the unexpected decrease of the New Home sales the US dollar
GBPUSD
According
to the Nationwide Building society poll published on Friday UK’s consumers were
less confident about the direction of their country’s economy in February. The
pound did well on held it’s positions against the US dollar on Friday trading
between the previous day range of 1.5804 – 1.5908. Today the pair opened
stronger than the Fridays session open currently trading at 1.5864. On focus
this week will be the Final GDP q/q report and the Current Account releases due
on Wednesday. Support for the GBPUSD is seen at 1.5809 and resistance is seen
at 1.5883. The Inside View indicator on HotForex shows that 68 percent of the
traders are short on the GBPUSD.
AUDUSD
Last week was very bumpy for the Australian dollar
with a drop of about 300 pips against its US counterpart. This week will be key
to see if the pair is going to push lower. There is a lack of local data from Australia
and the investors will be focused on the US releases. Support for the AUDUSD is
seen at 1.0351 and resistance is seen at 1.0486. The Inside View indicator on
HotForex shows that 62 percent of the traders are short on the AUDUSD.
USDJPY
The Bank of Japan governor Shirakawa warned the
central banks from the risk of law rates. He said that the central banks must
consider the risks of keeping the interest rates at its low records for a long
time as they seek to recover from the 2008 financial crisis. The US dollar
remained well supported and it opened higher against the Japanese Yen. Support
for the USDJPY is seen at 82.08 and resistance is seen at 83.12. The Inside
View indicator on HotForex shows that 72 percent of the traders are short on
the USDJPY.
Important
data releases and events:
EUR:
German Ifo Business Climate; ECB
President Draghi Speaks
USD: Fed Chairman Bernanke Speaks; Pending Home Sales
m/m
CAD:
BOC Gov Carney Speaks
GBP:
MPC Member Miles Speaks