A busy trading Thursday for the London session ahead as having plenty of risk events going on, starting with minor data in the form of CPI figures from the Netherlands at 07:00 GMT, followed by Ireland PM Kenny meeting with EU parliament president Schultz at 11:15 GMT, and then going for the long awaited ECB interest rates statement at 11:45 GMT, 45 minutes before ECB press conference starts. BoE will also deliver monetary policy announcement at 11:00 GMT which could add volatility to EUR/GBP cross. IMF will hold press conference at 14:30 GMT.
Attention too on EZ sovereign debt auctions coming from Spain selling up to € 4B in 2 to 5 year maturities, and France doing so in long term debt wanting to sell up to € 8B. Spanish 10 year bond yields have been steady below 6% for last 3 days, with risk premium against Germany around the 420 bps, last at 437.
Immediate resistance to the upside for EUR/USD comes at recent session/yesterday/Monday highs 1.2930/40, followed by Tuesday's highs at 1.2967, and Sept 19 lows at 1.2992. To the downside, closest support shows at Sept 24/yesterday's lows at 1.2891/80, followed by Sept 26/27 lows at 1.2832, and Monday's lows at 1.2802.