The key events today are UK CPI and the Bank of Canada's interest decision.
The EURUSD was bouncing around yesterday as little US or European news was released. As such Forex traders are watching yesterday's low of 1.4340 to see if it will hold today. So far in early morning trading, the pair has traded around the 1.4400 level. Looking ahead, at Go Forex we believe short term direction will be dictated by moves in the equity markets, where stocks are currently reporting 1st Quarter earnings.
EURUSD Support/Resistance 1.4340/1.44415
The pound is rallying to start the day, as the GBPUSD has traded back above 1.6400. Today UK CPI is released. The CPI has tended to lead to large moves in the pound. Today's release should be no different. On one hand, the GPDUSD has traded higher in the past week; therefore it could be vulnerable, if a weak number is reported. On the other hand, market sentiment appears to be improving for the pound due to a growing consensus that the BoE is doing a good job. Therefore, if CPI is high enough to warrant no future monetatry stimulus from the BoE, we could see another leg higher in the pound.
GBPUSD Support/Resistance 1.6200/1.6355
The CAD will be in the spotlight today, as the Bank of Canada meets for their interest rate meeting. No change is expected from the BoC, however Forex traders will be examining the accompanying statement and press conference for any data of when the BoC will raise rates. At Go Forex, we believe the BoC will continue to offer a conservative outlook. The BoC is worried that loonie strength could lead to a drop in US/CANADA commerce. Nonetheless, the press conference could lead to trading opportunities, as the BoC's members have been upbeat in their previous spoken opinions.