The Euro traded between a range of 1.2099 and 1.2144 in yesterdays trading session, reaching the higher limit after retail sales figures from the US came in below expectations but that was later offset by stronger than expected industrial production figure which made sure the gains were short lived
The Retail Sales figures hit the market at -1.3% against analysts expectations for a figure of -0.8% while the Producer price Index (PPI) 6.6% against a consensus 0f 6.3%.
Although the figures gave mixed signals about the recovery of the US economy, it was enough to keep the Euro under pressure towards the end of the trading session yesterday. As expected, the EURO/USD currency pair is virtually motionless as we enters todays trading session as the market awaits the all important news from the US Federal Reserve.
The US central bank isn’t expected to change direction much in regard to their current course regarding monetary policy, investors will scrutinize Chairman Jerome Powell’s speech for any signs of a planned reduction in the tapering programs the Fed currently has underway and the Euro will suffer as a result.
The Euro has run into resistance once again at the $12128 resistance line but at the time of writing this article has managed to stick its head above this critical level as shown on the chart.
Heading into today’s big news,, it is important from a psychological point of view that the Euro can remain above this level to set itself up for a relief rally if the Fed keeps their dovish stance which will keep a lid on any imminent rate hikes in the US