Chart Analysis

In recent currency market trading, EUR/USD consolidated during the early part of last week, making its weekly low point of 1.3070 last Monday, before then trading sharply higher as far as 1.3423 on Friday.

The Bank of England’s Monetary Policy Committee is widely expected to keep the base interest rate and the amount of asset purchases unchanged in today’s announcement.

Today, the final German CPI and the European Central Bank monthly bulletin will be published in Europe and investors will keep a close eye on the jobless claims in the US.

It appears that the USD/CHF pair might be trying to form a base at the extremely low levels, if the weekly chart is any indication.

The Australian dollar has started to rebound against the earlier sell off in Asian and European trading during the American session.

Today the euro found a little bit of relief against the Pound as the FX rate bounced following a slew of disappointing economic news out of Europe.

The U.S. and Canadian trade balance numbers were released at 8:30 A.M. (GMT – 5) this morning surprising economists as they favored the United States this time.

Early this morning, the Japanese Household Confidence report came out at a reading of 40.9, which was just 0.30 higher than the consensus expectation and 0.30 below the previous report.

In European currency market trading, we have seen a large up move in the value of the Australian dollar. This should be no surprise as traders have also been bidding up the value of gold, a big Australian export.

Today sees the FX rate of the EUR/USD pair find its footing after plunging over the course of the last two previous trading days. The FX rate of the euro has been punished over the last few days by couple factors on traders’ minds.

Monthly manufacturing production numbers for the UK were on the light side this morning coming in at a 0.1% increase as opposed to the expected 0.3%.

FX traders today have drawn a line in the sand at the significant support level of 112 in the EUR/JPY pair during European trading. The pair had recently been pushed northwards by FX traders.

After a massive surge in the rate of the New Zealand dollar against the greenback, FX traders are taking a breather as the pair has become overbought in the past few days.