FXstreet.com (Barcelona) - How will the markets digest the Financial Stability Plan and the Treasury Secretary Geithner's description? That is the question today. At 16:00 GMT, Timothy Geithner will testify at Senate Panel and we will see how it will affect stocks markets and the USD in the American session.
This morning, during the European sessiÃ³n, the USD/CHF has dropped to the 1.1600 level after the release of a lower than expected Consumer price index in Switzerland in January.
GBPUSD has dropped after testing the upside line of the seven day upside trending channel at 1.4932, all the way down to the lower line of the channel at 1.4772, intraday resistance turned support, further down 1.4702, intra-week low, and 1.4590
The EUR/JPY also drop to levels around 117.00, where a minor pullback is taking place aiming to resistance level at 118.00. Today, Soichi Nakagawa, japan's Finance Minister, says that Japan don't want excessive JPY forex moves.
Today, US Wholesale Inventories and ABC/Washington Post Consumer Confidence will be events to watch, but the main event is the Geithner's speech. Market expects that the comments he will announce will be rather short on details and thus the overall market reaction looks likely to be for less risk taking.