Markets are getting ready for the rush of fundamentals today ahead of the awaited BoE and ECB rate decisions, which investors are waiting for to collect more clues about the future outlook for the economy and the monetary policy, especially amid growing concern that the recovery is loosing momentum and both banks will therefore be pressured into stalling the reversal of their policies and withhold the measures withdrawal.

The data were abysmal yet again from the euro nation, where the French unemployment skyrocketed to 10% from 9.5% highlighting the downside pressured on the recovery ahead of Trichet's press conference. The euro is already suffering deep pessimism with growing focus on the Greek deficit crisis, especially as the 4.8 billion new measures announced yesterday did not last in positive support after Germany seemingly is still reluctant to aid the nation. The GDP was unrevised as the economy expanded a sluggish 0.1% in the last quarter and that is only emphasizing the fear that the recovery is indeed loosing momentum as the stimulus measures adopted by governments start to wane and while spending is still pared amid surging jobless rates across the nation.

The euro failed in retaining yesterday's acquired gains declining from the highest recorded at 1.3712 to set the low of 1.3631. Currently, the euro is trading slightly higher versus the dollar off early lows though still generally bearish; the pair is trading among 1.3655 support and 1.3720 resistance, while any trading above 1.3655 keeps the potential valid for the pair to retest higher grounds.

The downside pressures are still felt on sterling, preventing the royal currency from appreciating much; yesterday it managed to seize the opportunity and rise on the back of spread optimism in the market which enabled investors to risk it on the currency which has earned this status in the recent period due to the vague and instable outlook for the United Kingdom. The pair is trading within a tight range today ahead of the BoE on fear of a surprise move by the BoE on their APF. The GBPUSD is trading today between the highest set at 1.5105 and the low at 1.5020, while according to technical indications, trading above 1.5030 increases the likelihood for the pair to head higher in a retest to areas of 1.5130 once more.

Where there is no other currency that is lucrative on pessimism as the Japanese yen, which outpaces the dollar in that! The yen advanced versus the dollar, as the USDJPY pair declined from 88.62 areas towards 88.12; currently the pair is trading among 88.20 support and 88.80 resistance.

We are still waiting for the rate decisions from both central banks and most importantly Trichet's press conference which might add more volatility to the market. Till then, for further insight on the sentiment and expectations for the EURUSD and GBPUSD you can read today's Market Pulse.