Forex News: German inflation data and U.S. Gross Domestic Product matched analysts’ expectation yesterday and each strengthened the respective currency. The pair bounced at support but failed to break resistance and moved lower again, creating irregular movement.
Daily FX Analysis
Forex News: The text of Fed Chair Designate Powell’s testimony was released 17 hours earlier than initially scheduled. However, during his hearing before the Senate Committee he showed a hawkish stance, giving a boost to the US Dollar.
Forex News: The pair made new advances during the early stages of yesterday’s trading session and pierced through last week’s high at 1.1944. However, the US Dollar showed signs of recovery in the afternoon and price returned below resistance.
Forex News: Friday the German IFO Business Climate posted an all-time high figure of 117.5, thus allowing the Euro to make significant advances against an already weak US Dollar and to finish the day almost 100 pips higher.
Forex News: The European Manufacturing and Services surveys released yesterday showed optimism among purchasing managers and this contributed to the pair’s climb into the key resistance at 1.1860, generating another bullish session.
Forex News: The FOMC Meeting Minutes revealed yesterday that a few members were worried about weak inflation and were against a near term hike. This generated US Dollar weakness and allowed the pair to climb close to 1.1825 resistance after a bounce at support.
Forex News: Political turmoil in Germany, combined with modest US Dollar strength took the pair below support yesterday. However, price remained in a tight range for almost the entire session.
Forex News: Price dropped very early during yesterday’s trading session but support pushed it higher and all losses were nullified. The Euro was initially unfazed by Draghi’s testimony, who mentioned that economic expansion is solid but was less hawkish about inflation.
Forex News: Friday’s price action was characterized by a sharp climb that nearly touched 1.1825 resistance but soon after, the pair slowed down and consolidated below 1.1800. The U.S. construction data was better than anticipated but the impact was limited.
Forex News: The Final version of the Eurozone CPI matched analysts’ expectations yesterday so the release didn’t have a substantial impact and the pair showed choppy movement throughout the day, with a bearish bias.