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Forex Review: Japanese GDP Beats Forecasts
Written by article default Monday, 15 November 2010 09:52
Coming Up Today (all times GMT)* USD Retail Sales (13:00)
With only US Retail Sales scheduled for release today, upcoming news is expected to be relatively light. Nonetheless, the overnight session provided some interesting action following much better than expected GDP results from Japan. The 3.9% expansion versus 2.5% consensus led Asian and Pacific stock indexes to rally and caused selling pressure in the Yen, as traders left the safe haven. Overall, the risk appetite buying has been isolated to equities as currencies (other than Yen crosses) are near last week’s closing prices.
EURUSD
After an early pop to 1.3750 following the Japanese GDP numbers, the EURUSD has slowly fallen back below 1.3700. Looking ahead, the pair has support at 1.3660, however if this levels fails to hold, the pair is vulnerable to a drop to the 1.3600 figure. On the other side, the EURUSD’s early highs fell short of last Friday’s 1.3780 high. This may indicate that traders are selling into any rally and could once again thwart a move above 1.3800.
Support/Resistance 1.3660/1.3780
GBPUSD
The GBPUSD showed its resiliency last week as it shook off multiple sell offs below 1.6000 and traded back towards 1.6200. Looking forward, Forex traders will be watching the 1.6200 level closely. Three times last week, the pair found resistance at this level. However, with pound sentiment improving, if the pair can mount a move above this figure, it could be well positioned for an upside breakout towards its 1.6300 resistance.
Support/Resistance 1.6100/1.6195