The EUR/USD pair made a sharp decline in today’s European session, continuing a trend that began last week. After opening at a healthy 1.3781 during the Asian session, it began to slide from there, bottoming out at 1.3743 during today’s European session. The drivers for the decline have been the same ones that led to last week’s decline. One of these is the rumours about next week’s European Central Bank (ECB) monetary policy meeting wherein further easing expected from the bank. This is expected to be in the form of a stimulus package or a further cut in the already low interest rate.
More volatility in the pair may be expected later today as the United States will release a number of data, including its Gross Domestic Product for Q4, happening at 12PM GMT.
The EUR/USD pair is currently trading at 1.3756, with initial resistance seen at 1.3804, followed by 1.3839. Meanwhile, initial support is at 1.3751, followed by 1.3717.
The GBP/USD pair benefited massively from the United Kingdom’s better-than-expected retail sales data for February that were released today. It beat expectations of a 2.5% rise over the past 12 months as the actual figure came out at 3.7%. Meanwhile, the monthly change was up by 1.7%, compared to the consensus of 0.5%. With fuel excluded, the country’s retail sales also went up by 1.8% over the past month (consensus was at 0.3%), while it grew by 4.2% over the past 12 months (consensus was at 2.8%).
The data gave the GBP/USD pair a massive spike. After opening at a decent 1.6576 during the European session, it peaked at 1.6640 after the release of the data. It is now trading at 1.6624, with initial resistance seen at 1.6634, followed by 1.6676. Meanwhile, initial support is at 1.6544, followed by 1.6503.
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