Which falls Euro or Pound?

As two very important events are scheduled for today one may wonder which currency will fall and which one will rise. United Kingdom has to release Forex news first. Bank of England will deliver their decision about interest rates and Bank chief should also deliver some speech about central bank’s financial policy. I am bullish towards Pound and bearish towards Euro at the moment. However, I will concentrate more on gbp/chf and gbp/nzd pairs. These look most attractive at the moment. Pound Franc pair has to clear 1.4500 level to confirm bullish bias. I buy above that price area. 

Euro, on the other had looks kind of bearish. I am looking at eur/nzd now and the technical structure of it is very bearish. So, it looks weak against commodities and today’s event might change the course for Euro against commodities, but nobody knows what will happen to eur/usd, eur/jpy and eur/gbp pairs. Euro US dollar pair seems to be sitting on support as well as gbp/usd pair. So, it alludes to the idea that the greenback might fall. I also do not rule the chance of Euro forming double bottom patterns in commodity currencies on hourly charts. Whatever happens, be sure to be on the same side as the market. 

See you tomorrow with more updates.

Canada CPI mark bottom in CAD?

Canada CPI is coming in few minutes. What do we expect? A lot of Canadian dollar pairs are showing possible bottoms. If you take gbp/cad or eur/cad as an example we can see clear resistance levels that both Euro and Pound were not able to break in a few years time. However, I do not rule the chance that this will change. I hope you see what happens in commodities. Gold has lost ground below ‘its’ feet and most other commodities are falling too. 

The same can be said about commodity currencies. Australian dollar as well as New Zealand dollar have been terribly falling recently. So, it is very probable that ‘loonie’ will fall too. Do not forget that it is highly correlated to oil and look what is happening to oil.

Markets are preparing for FED decisions

We have a very important event today. It may change current market trends across the board. It is FED rate decision. If they are going to signal an end to the monetary easing process we are going to have turmoil in financial markets all over the world. If you can afford I would recommend watching what happens in the markets around 18.00-19.00 GMT. This is the time when the release comes out and Ben Bernanke conference in Washington takes place. 

From technical perspective Japanese Yen should rise. Dollar is neutral with small bullish bias. Pound may rise too. Commodity currencies look much stronger than a week before.