FOREX NEWS: CARNEY’S SPEECH – DOVISH OR HAWKISH?
EUR/USD
Forex News: The American currency weakened yesterday against its counterparts as disappointing values were posted for both the Durable Goods Orders and the Gross Domestic Product. As a result the pair touched resistance at 1.3640 and the day was controlled by the bulls.
Technical Outlook
The pair continues to move extremely slowly compared to its normal behavior and although yesterday the bulls showed clear signs of dominance, future direction is uncertain. The current level of resistance may push price lower or it may bring in more buyers if a break is recorded, so today’s price action revolves around a “bounce or break” scenario. Next resistance is located at 1.3680 while support sits at the uptrend line, followed by 1.3585.
Fundamental Outlook
Today lacks major announcements for both the Euro and the US Dollar and the pair’s direction will be mostly affected by technical factors.
GBP/USD
US Dollar weakness was seen against the Pound as well and the pair made a push for 1.6996. However, the bulls lacked the necessary strength to break resistance and price remained below it.
Technical Outlook
At the moment we are seeing rejection at 1.6996 (1.7000) resistance and it seems like the bulls failed to renew the uptrend. This suggests that moves lower may follow and that 1.6920 support might be the next destination. A climb above 1.7000 will invalidate this scenario but Mark Carney’s speech will be the day’s headline and will probably have a strong impact on price action.
Fundamental Outlook
AT 9:30 am GMT the Bank of England will release the Financial Stability Report which contains an assessment of potential risks to the current financial system and an in-depth analysis regarding financial stability in the UK. At the same time, BOE Governor Mark Carney will hold a press conference and will deliver a speech focused on the mentioned Report. His attitude will most likely have a great impact on the Pound and will be the day’s main market mover.
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