EU Session: United Kingdom and Euro Zone

United Kingdom


GBP/USD: The British pound resumed its downside trend reaching as low as 1.5278 during the first hours of the day, while the pair will be waiting for the Manufacturing Production data, which is expected to come in at 0.0% vs. -0.7%. The most important event is the Bank of England (BOE) rate announcement, which is expected to remain on hold at 0.50% with the Asset Purchases Facility of 275B pounds. In the meantime, technical indicators remain to the downside, and may extend further during the day; the next obstacle support stands at 1.5270 followed by 1.5230.

Manufacturing Production: An index that measures the change in the total value of goods and services produced during the reported month, the index has a significant impact on the markets during risky and normal market conditions.

BOE Rate Decision: The Bank of England rate decision includes the Official Bank Rate on overnight deposits as well as the Asset Purchases Facility (Bonds Purchases). The news has also a significant impact on the markets, but the most important part is the bank statement and outlook for inflation and growth.

Euro Zone

EUR/USD: The European currency also took a hit from FITCH’s statement yesterday, the pair dropped to as low as 1.2661 and closed yesterday’s trading well above that support. The pair will be waiting for the ECB rate decision today, which will include the bank press conference and the minimum bid rate. The bank is expected to remain steady with its policy this time and is likely to leave its benchmark rate on hold at 1.00% unlike the past two decisions. EUR/USD is likely to continue with its downside retracement and may open well below 1.2600 during the week, all the way to the next obstacle support which stands at 1.2550.

ECB Rate Decision: The European Central Bank decision includes the minimum bid rate, and a press conference which announces its outlook for the next month for inflation as well as further insights on monetary policy and price stability measures. The news has a significant impact on the markets.