MARKET UPDATES :
- Forex – Dollar edges higher with Yellen remarks on tap
- Forex – Yen turns weaker in Asia as investors look ahead to Yellen views
- Forex- Dollar holds steady vs. euro, yen ahead of Yellen speech
EUR/USD is unchanged on Friday, after the pair posted small gains in the Thursday session. The pair is trading quietly slightly below the 1.12 line. On the release front, there are no Eurozone events on the schedule. The US will release two key indicators – Preliminary GDP and UoM Consumer Sentiment. As well, Fed chair Janet Yellen will deliver remarks at an event in Boston. Traders should be prepared for possible volatility from EUR/USD in the North American session. The US economy has shown mixed numbers in the first quarter, and Preliminary GDP, which can be treated viewed as an economic report card, will be closely monitored. Final GDP for the fourth quarter came in at 0.5%, shy of the estimate of 0.7%. The estimate for Preliminary GDP stands at 0.8%, and if the indicator matches or beats this reading, the US dollar could push upwards.
GBP/USD is currently trading with a bullish bias. Yesterday, the pair rebounded from the resistance level 1.47068, headed short and is still pretty much bearish. We expect the current upward rally to be a mere upward pullback and should not close above 1.4729, a close above this level will lead to an acceleration towards 1.4818, while a clear rebound from 1.4706 – 1.4729 will confirm the anticipated momentum to the lower side. This pair should be traded alongside GBP/CHF, and GBP/JPY. These pairs have a strong positive correlation of up to +0.85 and will have a similar price action during this intraday.
- BUY GBP/USD ABOVE 1.4688 TGT 1.4708 1.4738 SL 1.4658
- SELL GBP/USD BELOW 1.4640 TGT 1.4620 1.4590 SL 1.4670