Coming Up Today(all times GMT)

  • GBP Trade Balance (0830)
  • USD Unemployment Claims(1230)
  • USD Fed Chairman Bernanke Speaks(1230)
  • NZD Retail Sales m/m(12:45)

Euro zone growth worries keep euro under pressure. The EURUSD fell on Wednesday as the traders are skeptical about the Euro zone's economic growth, in spite of spending cuts in Spain and a successful bond sale in Portugal.

EURUSD

The EURUSD traded down 0.2% to 1.2628 after trading to 1.2739. The euro did gain after reports of Spain's public spending cuts and Portugal's bond sale but the upward momentum was short lived and the EURUSD went down testing the 1.26 levels.

Support/Resistance 1.2610/1.2740

GBPUSD

The GBPUSD sold off following the Bank of England's inflation report, as Governor Mervyn King said growth risks had increased over the last three months, and a resumption of Quantitative Easing was possible. As such, the UK's deficit is gathering increased headlines and is slated to affect the course of pound trading in the near future. Looking ahead, UK Trade Balance figures are out today.

Support/Resistance 1.4815/1.4945

Gold

Gold continues northbound reaching the Record high at $1248 levels. The skepticism of the traders is to blame, as the investors do not believe that the $1 Trillion rescue package will not solve the Euro Debt Crises. The Greek bailout does not address the underlying fiscal problem -- the absence of EU taxing and spending authority. Investors, fearing the worst, are hedging by putting more of their portfolios into gold, and the price of gold rises, University of Maryland professor Peter Morici said in a note.

Support/Resistance 1039.50/1249.10