Worries about the Italian political situation pushed the EURUSD lower yesterday. US Unemployment Claims on tap.

EURUSD dropped yesterday and closed at 1.2777. Concerns about political uncertainty in Italy renewed yesterday as the country’s Democratic Party leader ruled out the possibility of a broad coalition government. The Italian borrowing rates for five-year debt rose to a five-month high further added to the downward pressure on the EURUSD. The Industrial Confidence Index in the Eurozone dropped to a reading of -12.5 in March. On the other side of the ocean the Pending Home Sales month over month in the United States dropped with 0.4% in February. The President of the Federal Reserve Bank of Chicago, Charles Evans, opined that the central bank should continue with its monetary stimulus until the end of this year. Investors are now awaiting the Unemployment Claims release due from the United States today. Support for the EURUSD is seen at 1.2756 and resistance is seen at 1.2884. The HotForex Traders Board shows that 64 percent of the traders are long on the EURUSD.

GBPUSD

The Cable dropped yesterday and closed at 1.5126. The Gross Domestic Product in the United Kingdom dropped with 0.3 percent in the fourth quarter of 2012 in line with the estimate. The current account deficit hit 14 billion Sterling in the fourth quarter of 2012. The total business investment in the UK dropped 0.8 percent in the fourth quarter of 2012. Support for the GBPUSD is seen at 1.5088 and resistance is seen at 1.5168. The HotForex Traders Board shows that 59 percent of the traders are long on the GBPUSD.

 

Worries about the Italian political situation pushed the EURUSD lower yesterday. US Unemployment Claims on tap.