All eyes will be on the BoE and ECB meetings today as the Greece saga continues to drag on

<p>AUD/USD Range: 1.5791-1.5850 Support: 1.0700 Resistance: 1.0850 The Australian dollar rebounded back above the 1.0800 level after an initial move lower on the release of […]</p>

AUD/USD

Range: 1.5791-1.5850
Support: 1.0700
Resistance: 1.0850
The Australian dollar rebounded back above the 1.0800 level after an initial move lower on the release of the Chinese CPI data. Chinese CPI data was the key release in Asia overnight and surprised the markets with an above consensus reading of 4.5% (4% expected). The AUD ran stops to 1.0740 but as the market realised the high reading was driven by food prices due to the Chinese New year AUD rebounded back above 1.0800 but didn’t have the legs to take out the 1.0850 resistance.

GBP/USD
Range: 1.5791-1.5850
Support: 1.5750
Resistance: 1.6000
Today we see the release of UK industrial production data but the main event will be the MPC meeting at noon today, with the market speculating about further QE. The consensus is for a further £50 billion to be added, with some economists expecting £75 billion. Cable stalled ahead of the 200-day moving average at 1.5930-1.5935 yesterday but the Queen’s currency still looks in good shape whilst above 1.5750 but with barrier protection at the psychological 1.6000 level it seem further stimulus will only provide the market with an opportunity to buy the dip.

 

 

 

 

EUR/USD
Range: 1.3214-1.3212
Support: 1.3150
Resistance: 1.3335
The Greek soap opera continued all night as talks between Greek political leaders and Troika officials failed to produce an agreement on a new bailout deal, with pension cuts sighted as the sticking point for now as we head into another day of ‘soon‘ and ‘maybe’. Aside from the Greek headlines today the ECB press conference will be closely watched for any mention from President Mario Draghi on the Greek debt swap deal and if it’s not mentioned in the statement, he’s likely to ask the question post the statement.

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.