Key Economic Data - Coming Up Today(All Times GMT+2)
The EURUSD was largely unchanged yesterday trading in a narrow range between 1.1615 and 1.1545. The range of 70 pips which is a 0.6% fluctuation from high to low is smaller than a typical trading day and indicates that uncertainty is present in the EURUSD trade. The mix between the Euro trading at a 12 year low and providing more value in price than at any time in the last decade is offsetting the expectation that fundamental developments in the shape of the approaching QE and the epic Greek election could lead to new lows and have kept the pair steady just above the lows of 1.1460.
Overnight in Japan the BOJ affirmed its commitment to continue its easy and expansive monetary policy and this lifted Japanese shares and boosted the strength of the Yen. The USDJPY succumbed from a high of 118.85 to drop to as low as 117.25. Gold has moved higher this morning climbing from the $1270 area yesterday to reach $1302 an ounce this morning. Gold is approaching a $100 move higher over the last week. Crude Oil has slumped to $46.50 a barrel as supply has been increased relentlessly by struggling producers trying to increase their revenues at these reduced prices. The USDCAD rose above 1.21 marking a new low in the Canadian Dollar versus the US Dollar as Canada struggles with falling commodity prices.
Coming up in the course of the day GBP Average Earnings Index 3m/y will reveal the growth in typical earnings in the UK. Earnings have been depressed over the last decade in relation to inflation and an increase in average earnings help fuel broad spending in the economy and help to increase corporate profits. Also in the UK Claimant Count Change is forecast to show a further decline of 24,200 persons claiming unemployment. More positive news is on the horizon with the Unemployment Rate set to decline from 6.0% to 5.9%. At 10am GMT in Switzerland and CHF ZEW Economic Expectations will give markets a reading on the reaction to the oversized CHF moves last week after the SNB dropped the Euro peg. In the US Building Permits and the Housing Starts are expected to show an improvement in permits and more projects begun by construction companies. The US housing market has been recovering well over the last 2-3 years although the global economy has begun to slow down and this could eventually prove to be a drag on the US economy and housing. In Canada the Central Bank meets to decide on Overnight Rate and there will be corresponding BOC Rate Statement and the BOC Monetary Policy Report followed an hour later by the Bank of Canada Press Conference.
EURUSD Support areas include 1.1550, 1.1500, 1.1400, 1.1350, 1.1300, 1.1250, 1.1175, 1.1100, 1.10. Resistance levels above are at 1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402, 1.2444, 1.2500.
EURUSD 5 Minute Chart
EURUSD 30 Minute Chart
EURUSD 4 Hour Chart
EURUSD Pivot Point Table