Tuesday, February 26, 2013

EURUSD dropped sharply following the election results in Italy. Fed Chairman Ben Bernanke testifies today.

EURUSD dropped sharply following the election results in Italy. Fed Chairman Ben Bernanke testifies today.

EURUSD dropped yesterday and closed at 1.3061. The single European currency was taken down as concerns that a potential political vacuum in Italy would revive worries over instability in the Eurozone weighed on investor sentiment. Early today the President of the Federal Reserve Bank of Atlanta Dennis Lockhart expressed his support to continue central bank asset purchases through the end of 2013 to help improve the job market. Investors are now focused of the testimony of the FED Chairman Ben Bernanke. Later today he will deliver his semiannual testimony on monetary policy to the Senate Banking Committee and a subsequent address before the House Financial Services Committee on Wednesday. Support for the EURUSD is seen at 1.3044 and resistance is seen at 1.3155. The HotForex Traders Board shows that 51 percent of the traders are long on the EURUSD.

GBPUSD

The Cable rose yesterday and closed at 1.5160. The mortgage approvals in the United Kingdom dropped to 32.3K in January. Earlier this morning the Governor of Bank of England Sir Mervyn King said in his speech that the near term outlook for the Euro area is weak. Investors are awaiting the Inflation Report Hearings due from the United Kingdom today. Support for the GBPUSD is seen at 1.5096 and resistance is seen at 1.5219. The HotForex Traders Board shows that 80 percent of the traders are long on the GBPUSD.


EURUSD dropped sharply following the election results in Italy. Fed Chairman Ben Bernanke testifies today.

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