After the US dollar had a moment to catch its breath yesterday the greenback has given back most of its gains in early European trading.
Today’s Economic Data Releases:
EUR – Retail Sales – 09:00 GMT
Expectations: 0.4%. Previous: -0.9%.
European retail sales for the month of April are forecasted to show a modest gain after falling in March. A stronger than expected reading may help to support further euro gains that have been booked this morning, though that could quickly change as Thursday’s ECB policy meeting approaches. Currently the EUR/USD is testing the resistance at 1.4660 from last Friday’s high. A break here and the pair could climb to the next resistance located at 1.4760 off of the late April/early May lows. Support is found at 1.4450.
USD – Fed Chairman Bernanke Speaks – 19:45 GMT
Bernanke is scheduled to give a speech touching on the US economic outlook later today in Atlanta. Given the recent downturn in US economic data traders will be looking for an adjustment in the Fed Chairman’s wording, specifically on the pace of economic expansion. Any retreat in US growth expectations may be met with dollar selling. USD/JPY support is located at the May low of 79.56.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
