MARKET REVIEW 29/04/2014 EUR/USD The EUR/USD fell sharply today after the German CPI data came out -0.2% instead of expected -0.1%. The worse-than-expected data came before the EU CPI data which will be released tomorrow and probably cause another trading opportunities. Why the market reacted in so much? We should not forget that European central bank has been recently fighting with low inflation and fears about deflations. If the data comes out below expectation (0.9%) the ECB will most likely cut the interest rates which depreciate the Euro and push the pair down. We should still pay attention to U.S. CB Consumer Confidence which comes out today at 2.00PM and is expected to be one of the highest since January 2008. The trend is slightly bearish. Today EUR/USD has support of 1.3800 and resistance of 1.3880. Trend Slightly Down GBP/USD The GBP/USD pair fell down in the morning, immediately as the U.K. GDP showed that the output rose by 0.8% which is less than expected (0.9%). The pair was before very high on strong expectation so the sharp fall (despite the quite good data) was not surprising. Now the pair is climbing before the U.S. Consumer Confidence Index and might drop if the reading beats the expectation. Tomorrow we should pay attention to U.S. ADP Non-farm employment change at 12.15PM (GMT). The movement is sideways. Today GBP/USD has a support of 1.6775 and a resistance of 1.6850. Trend Sideways Gold The price of Gold first fall on the positive outlook of U.S. economy supported by good U.S. Pending Home Sales data and by strong performance of stock market. The price is currently retracing up which might be good opportunity for placing a selling position as the Fed is expected to taper another $10 billion/month from the monetary stimulus tomorrow at 6.00PM (GMT). The trend is slightly bullish but be careful with longer-term buying positions with support at 1,280 and resistance at 1,307. Trend Up - Down
Posted on: Tue, 29 Apr 2014 15:43:25 +0000
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