Key Economic Data - Coming Up Today(All Times GMT+2)
Following the announcement by the ECB that it will no longer accept Greek bonds as eligible collateral the EURUSD fell sharply hitting a low of 1.1304 from as high as 1.1534 earlier in the day. This came several hours after Greek Finance Minister Varoufakis meeting with ECB President Mario Draghi. The ECB had given Greece until the end of February to conclude a deal with its creditors and continue its recovery program. Despite this the ECB stated that ''it can't assume successful conclusion of Greece review''. The ECB is concerned that a deal will not be reached as Greece is unwilling to continue with the 'pretend and extend' approach. Yesterday Varoufakis responded to a threat by Germany's Schulz that if Greece does not reach a deal soon the nation will face bankruptcy to which Varoufakis responded that he is the Finance Minister of a country that is already bankrupt. Most major exchange rates remained unchanged as the weakness was restricted to the Euro. The GBPUSD, USDJPY, USDCHF, AUDUSD, USDCAD are all trading close to unchanged versus the same time yesterday. Crude Oil got crushed yesterday following poor Crude Oil Inventories data as Oil fell from $54.24 to a low of $47.38 declining 12.8%.
Yesterday Eurozone Final Services PMI advanced to 52.7 from 52.3 following strong data out of Italy and Spain. GBP Services PMI also rose from 55.8 to 57.2 in a plosive development for the UK economy. Eurozone Retail Sales expanded by 0.3% building on last month's 0.7% growth while US ADP Non-Farm Employment Change data came in weaker than forecast at a rate of 213K. The ADP indicates that the rate of job creation may be slowing although anything above 200k is still encouraging. The ADP data is expected to lead to increased volatility and price moves at 13:15GMT. US Final Services PMI and ISM Non-Manufacturing PMI both advanced in a further signal that the US economy is withstanding the global slowdown thus far .
This morning German Factory Orders m/m jumped 4.2% buoyed by a weaker Euro and GBP Halifax House Price Index beat expectations rising 2.0%. Coming up today at 10:00GMT the EU Economic Forecasts followed by the GBP Official Bank Rate at 12:00GMT. At 13:30 US Unemployment Claims and the US Trade Balance are expected to be released alongside the CAD Trade Balance. Also today Greek Finance Minister Varoufakis will meet with German Fin Min Schaeuble.
EURUSD Support areas include 1.1325, 1.1250, 1.1200, 1.1150 1.1100, 1.1050, 1.10, 1.0950. Resistance levels above are at 1.14, 1.15, 1.16, 1.1650, 1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 10 Minute Chart
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EURUSD Pivot Point Table