Upcoming sessions (all times GMT)
• EUR German Prelim GDP q/q (06:00)
• GBP Claimant Count Change (08:30)
• GBP BOE Gov King Speaks (09:30)
• GBP BOE Inflation Report (09:30)
• CAD Trade Balance (12:30)
• USD Trade Balance (12:30)
The Euro continues to remain bearish as the investors remain worried about the euro zone’s ability to tackle the fiscal deficit in Greece, and a possible “contagion” effect. Even after the announcement of a definite rescue package, concerns remain high that the 110 billion-euro bailout fund will not be enough to save Greece , not stop it from spreading across the single currency zone.
The U.S. Stock market did show some stability as the major indexes rebounded from the big drop last week.
EURUSD
The Euro fell for a second day yesterday as concerns escalated that region’s most-indebted nations will continue struggle to contain their deficits. The single currency slipped about 0.2% to trade around $1.2642 during the late U.S session yesterday.
The Euro continues to slide against the U.S Dollar, testing the support levels at 1.2600. The imminent resistance can be seen at 1.2660 levels. The market will watch to what degree the Euro Zone and the IMF are committed to solve the debt crisis and if these authorities will be able to increase taxes and cut spending.
Support/Resistance 1.2600/1.2750
GBPUSD
Five days after the general election, Britain finally has its new Prime Minister – Conservative Party leader David Cameron.
Also out yesterday, the U.K Manufacturing rose more than five times its expected value, as the current weakness of the Pound strengthened exports across the board. Manufacturing output jumped 2.3% from February – its biggest gain since 2002. Moreover, Industrial production rose 2.0 m/m and the housing market also showed signs of recovery.
Later today, the Bank of England will announce its quarterly Inflation report.
If all news from the U.K is deemed positive, the GBP might test the $1.4964 levels.
Support/Resistance 1.4860/1.4964
Gold
Gold continues to trade bullish with the next targets set at 1300 levels. Rising concerns over the European debt crisis and the instability of its single currency have pushed investors into more risk adverse assets. Yesterday, gold continued to prove to be the safe haven for the investors as it traded at the all time high. According to Barclays gold can move as high as $1500.
Support/Resistance 1043.49/1300
Written by Finexo.com
