Coming up Today (All Times GMT)
- GBP - Output & Input Prices (09:30)
- USD - CPI & Retail Sales (13:30)
- USD - University of Michigan Consumer Confidence (14:55)
Thursday, the euro extended its rally above the $1.3300 level. The European currency was boosted by successful auctions of Spanish and Italian bonds and a stronger assessment of inflation risks from the ECB. On the other hand, the US dollar retreated following the release of an unexpected jump in jobless claims last week, which tempered the positive sentiment that has been developing lately for the US recovery and the dollar. Looking forward, the EURUSD pair is supported by the $1.3250 support and capped by the $1.3380 resistance.
EURUSD Support/Resistance: 1.3250/1.3380
The fact that Mr Trichet is starting to worry about the risk of rising prices added to the debate on UK accommodating monetary policy. In this context, the GBPUSD pair extended its bullish move to trade above the $1.5800 mark. So far, it seems that the Monetary Policy Committee has been focusing on fighting the risk of a double dip recession, leaving the debate on inflation for later. Today, investors will be monitoring the release of producer price indices for further evidence of inflationary pressures. Technical wise, the GBPUSD pair is supported by the $1.5775 support line and capped by the $1.5885 resistance. Against the euro, the pound has been retreating above the £0.8400 resistance level, finding firm resistance around £0.8445.
GBPUSD Support/Resistance: 1.5775/1.5885
EURGBP Support/Resistance: 0.8390/0.8445