Yesterday EURUSD rose and closed at 1.2570 after the president of ECB Mario Draghi stated the ECB stands ready to act if the economy slips lower. ECB kept the benchmark interest rate at a record low of 1.0% in June just as the expectations of the market analysts. At the ECB Press Conference Mario Draghi stated that there were downside risks to the European economy, stemming from the debt crisis in the region and its growing potential to spill over to the wider economy. He said that the central bank stands ready to help support the economy in the Eurozone. Today we have the Spanish 10-y Bond Auction and the French 10-y Bond Auction due from the Eurozone. Support for the EURUSD is seen at 1.2477 and resistance is seen at 1.2584. The Inside View indicator on HotForex shows that 53 percent of the traders are long on the EURUSD.
The Cable rose yesterday and closed at 1.5484. Today we have series of economic events from the United Kingdom. Investors are awaiting Official Bank Rate which is expected to remain at 0.50 percent. Support for the GBPUSD is seen at 1.5413 and resistance is seen at 1.5514. The Inside View indicator on HotForex shows that 54 percent of the traders are long on the GBPUSD.
Aussie strengthened against its US counterpart yesterday and closed at 0.9911. The employment data released earlier today showed that the number of people employed rose by 38,900 in May, compared to a revised 7,000 gain in April. Separately, unemployment rate rose 5.1 percent in May as it was expected. Support for the AUDUSD is seen at 0.9823 and resistance is seen at 0.9970. The Inside View indicator on HotForex shows that 79 percent of the traders are short on the AUDUSD.
Important releases and events
EUR: Spanish 10-y Bond Auction; French 10-y Bond Auction
CHF: Foreign Currency Reserves; CPI m/m
GBP: Halifax HPI m/m; Services PMI; Asset Purchase Facility; Official Bank Rate; MPC Rate Statement
USD: Unemployment Claims; Fed Chairman Bernanke Testifies
CAD: Ivey PMI