EURUSD dropped yesterday and closed at 1.3082. The United States dollar strengthened after better than expected US economic data added to the speculations that the Federal Reserve might scale back its bond-buying program. The New Home Sales in the US rose to 476K in May and the CB Consumer Confidence rose to 81.4. In Europe the President of the European Central Bank Mario Draghi defended the ECB’s bond purchase plan Outright Monetary Transactions that was introduced last year to head off the risk of a Eurozone break-up, saying the bloc is more stable as a result. Support for the EURUSD is seen at 1.3026 and resistance is seen at 1.3191. The HotForex Traders Board shows that 64 percent of the traders are short on the EURUSD.
GBPUSD
The Cable dropped yesterday and closed at 1.5421. In his final testimony the Governor of Bank of England Sir Mervyn King stated that Central banks are a long way off from tightening monetary policy. He defended Federal Reserve Chairman, Ben Bernanke’s comment on scaling back bond purchases and added that markets overreacted to Bernanke’s comments. Support for the GBPUSD is seen at 1.5343 and resistance is seen at 1.5489. The HotForex Traders Board shows that 59 percent of the traders are long on the GBPUSD.
EURUSD trading lower after strong US economic data. ECOFIN Meetings on focus.
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