Alpesh Patel
InvestingBetter.com
Price action over the past 24 hours has been limited as it was the start of the week and with the US markets closed for Martin Luther King’s day volatility in the major money markets was at low levels. However this should not be a precursor for the rest of the week as starting today a host of fresh news and reports are coming our way and price action is expected to pick up pace.
The focus today will be mainly on the Pound and secondly on the Euro, the UK currency has to tackle the release of the inflation data in the form of the Consumer Price Index report pending for release this morning. Also today BoE Governor Carney will be speaking in London and it’s high time to listen to what he has to say about the prospects of the domestic economy. Both events are expected to take a toll on the Pound that has been on the decline for some time now, first level of resistance lies at 1.4350 while support is at the 1.4240 lows.
The Euro will also be making headlines as the release of the German ZEW Survey is always a closely monitored metric that reveals the level of confidence in the Single currency. Analysts expect all components of the report to print in a bearish manner and this morning the Euro is showing this lack of confidence as it is trading lower below yesterday’s lows. The target for the Euro towards the downside lies around the 1.0810 lows of last week while resistance is at the 1.0900 level.
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