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Wednesday, February 22nd
The euro continues to lose a ground vs. its American competitor, spiking the level of 1.05. Seems that US bulls are still pretty confident in the pair with the euro ahead of FOMC Meeting Minutes, that could shed some light on prospects of further Fed’s monetary policy tightening measures. Moreover, the euro remains under selling pressure, as political concerns surrounding French elections are gathering pace. Today trading session promises to be pretty volatile as Germany will publish its Ifo Business Climate Index, EU will release final CPI data while the US has prepared data from housing market and FOMC Meeting Minutes, which will take center stage in New York’s afternoon.
The AUD/USD continues to build its gains after brief consolidation during Asian trading session. Yesterday the pair got strong bullish momentum after slightly cautious comments of L.Mester, head of the Federal Reserve Bank of Cleveland. However, the pair has eased part of its gain, and now is trading at 0.7689 spot, as traders refrain from making important decisions ahead of major event of this day –FOMC Meeting Minutes, that could bring additional clarity over prospects of interest rate increase at the next Bank’s meeting in March.
The GBP/USD pair eases part of its gains after facing strong resistance just above 1.2500 level. The pound was showing strong resilience vs. greenback, despite broad bid tone around the dollar during this week. Moreover, seems that pound bulls are still full of steam, as Brexit concerns are fading away especially after the House of Lords didn’t make any amendments during debates over UK PM T.May plan of separating UK from Eurozone. On the data front, today UK will release its another flash GDP report, while the US docket has Existing Home Sales and FOMC Meeting Minutes due to be published in NA session.
Today the USD/JPY pair is trading in south direction in wake of softer greenback’s positions. Yesterday the pair lost its upside momentum, as Cleveland Fed President L.Mester delivered her slightly cautious comments on rate hike outlook. On the other hand, the major finds some support from recent dovish talks of BOJ Governor H.Kuroda, who once again stressed that the Bank is ready to ease further if needed to hit 2% inflation target. Looking ahead, US Existing Home Sales are due along with key FOMC Meeting Minutes, scheduled on NA session.
The main events of the day:
UK prelim. GDP– 11.30 (GMT +2)
EU CPI – 12.00 (GMT +2)
Canadian Core Retail Sales – 15.30 (GMT +2)
US Existing Home Sales – 17.00 (GMT +2)
FOMC Meeting Minutes – 21.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0469 R. 1.0647
USDJPY S. 112.79 R. 114.21
GBPUSD S. 1.2371 R. 1.2531
USDCHF S. 0.9992 R. 1.0158
AUDUSD S. 0.7630 R. 0.7712
NZDUSD S. 0.7102 R. 0.7216
USDCAD S. 1.3069 R. 1.3201
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