FOREX NEWS: FED AND BOE RELEASE MEETING MINUTES – STRONGER MOVES EXPECTEDEUR/USD
Forex News: The German Producer Price Index showed a decrease and this largely contributed to bearish movement seen throughout the first part of yesterday’s trading session. However, the Euro recovered some of the early losses during the second part of the day.Technical Outlook
The market is governed by indecision at the moment but bearish pressure is present to some extent, although movement lacks strength and direction is changed many times. Yesterday’s price action was slow and this makes an accurate technical prediction more difficult but we notice the fact that the resistance located at 1.3730 is still holding and the day’s main move was bearish. Until a clean break of 1.3700 support or 1.3730 minor resistance occurs, the picture remains uncertain.Fundamental Outlook
The FOMC will release today at 6:00 pm GMT the Meeting Minutes, containing details about their latest meeting and insights into the reasons which influenced their monetary policy decision. Any hints about future interest rates or monetary easing will trigger sharp movement and hopefully will take the pair out of the state of indecision seen lately.GBP/USD
Yesterday the Pound was heavily affected by the Consumer Price Index which showed an increase from the previous 1.6% to 1.8%, surpassing the estimated 1.7% and generating a bullish trading session.Technical Outlook
Overall the pair had movement which was difficult to trade, mostly because after the first surge generated by the CPI release, price dropped sharply, wiping out some of the Pound’s gains and probably a lot of stop loss orders as well. Nevertheless, price is still trading above 1.6820 and the next target is 1.6880 where a bounce-or-break scenario will unfold. Support sits at 1.6820, followed by 1.6750.Fundamental Outlook
The main event for the Pound will be the release of United Kingdom’s Retail Sales scheduled at 8:30 am GMT. The estimated value is 0.4% compared with the previous 0.1% and better figures strengthen the Pound as they suggest increased economic activity. At the same time the BoE Meeting Minutes come out, containing a breakdown of the MPC members’ votes on the interest rate. Depending on how members voted, traders can assess the Bank’s stance regarding the interest rate and can speculate on future rate values.