Tuesday, February 1, 2011

Forex | Morning Review | 1 February 2011

Forex | Morning Review | 1 February 2011

Coming up Today (All Times GMT)

* GBP Nationwide HPI (7:00am)
* GBP Manufacturing PMI (9:30am)
* USD ISM Manufacturing PMI (3:00pm)

US dollar did not move much yesterday against other forex pairs as there were not important news and the market remained in sideways due to the uncertainty that remains in the Middle East. Later today the manufacturing survey is coming up and on Friday the Non-Farm payrolls are coming up which could solidify hopes for stronger recovery.

EURUSD : Euro this morning reached the 1.3728 nearing the top that did yesterday at the 1.3740, while the 1.3700 is expected to hold any retracement down as it did previously this morning. It is very possible that this week the forex pair will make new highs and some said that could go up and above 1.40 before March.

Consumer prices in the Euro zone rose by 2.4 percent year on year as announced yesterday, holding above the ECB’s target by 0.4 points which helped the Euro to continue higher. Easing worries about the euro zone debt crisis and the growing expectations that ECB could hike interest rates earlier than the Federal Reserve have supported the Euro in the recent weeks, also reports that the EU was working on a solution to reduce Greece’s debt burden has helped the Euro to rally. Later this week is the ECB’s monthly meeting and the market participants are looking forward to it.

Support/Resistance 1.3670/1.3730

GBPUSD : The pound this morning is trading above the 1.6050 making new highs for this year and keeps moving in an uptrend giving profits to the bulls. The forex market participants are expecting today the Nationwide House price Index and the Manufacturing PMI, also for tomorrow is coming up the Halifax HPI. The forex pair has a solid support at the 1.60 which is expected to hold any dip down.

Support/Resistance 1.5750/1.6070

February 1, 2011 - Markets.com