ECB to reveal QE plan
The dollar is trading with a bid bias against the majors with the euro breaking the 1.1099 level and trading to 1.1025, its lowest level since 2003. The […]
The dollar is trading with a bid bias against the majors with the euro breaking the 1.1099 level and trading to 1.1025, its lowest level since 2003. The […]
The dollar is trading with a bid bias against the majors with the euro breaking the 1.1099 level and trading to 1.1025, its lowest level since 2003. The technical picture points to a break of 1.10 as being a significant step for further declines in the single currency.
The monetary policy divergence remains the key theme for FX markets as Canada left its policy unchanged yesterday. The RBA deputy Governor was quoted as saying that the board noted further easing may be appropriate, citing that the recent cut was made due to the lack of improvement and not a continued decline in the economy. He went on to add that the Australian dollar was still overvalued compared to the state of the economy, but he acknowledged it was getting closer to a fair value. The Australian retail sales and trade deficit data came in generally in-line with the consensus forecast.
China has lowered its growth and inflation targets for this year as the market had expected. The yearly growth target has been lowered to around 7% from the previous estimate of ‘around’ 7.5%, with inflation targeted to be 3.0%, down from 3.5% last year.
The central bank meetings will dominate in FX space today ahead of the US jobs report tomorrow.
EUR/USD
Supports 1.1025-1.1000-1.0765 | Resistance 1.1155-1.1245-1.1400
USD/JPY
Supports 119.50-118.65-118.20 | Resistance 120.50-120.85-121.85
GBP/USD
Supports 1.5225-1.5200-1.5145 | Resistance 1.5345-1.5460-1.5500