Coming Up Today(all times GMT)

  • GBP Manufacturing Production (08:30)
  • GBP PPI (08:30)
  • USD Retail Sales (12:30)

Yesterday's momentum has continued in early morning trading, as riskier currencies continue to rally at the expense of the dollar. Today, US Retail Sales figures are the most anticipated news item of the day. Fed Chairman Ben Bernanke has stated this week that despite sluggish employment numbers retail spending growth continues to outperform expectations. Therefore, Forex traders will be watching closely to see if the continuing US unemployment levels are in fact not affecting spending.

EURUSD

The EURUSD caught a bid yesterday on the combination of positive comments from yesterday's ECB interest rate meeting as well as reports of short covering taking place from hedge funds. Currently, the pair has support at the 1.2100 figure and could rally further if it trades above its 1.2147 highs of the day.

Support/Resistance 1.2100/1.2147

GBPUSD

Positive sentiment continues to improve in pound as Forex traders bid up the GBPUSD above 1.4700. Looking ahead, UK PPI and Manufacturing data are due out today. The results of those numbers should dictate the pace of today's trading in the GBPUSD.

Support/Resistance 1.4460/1.4570