ECP: Euro and Pound advance ahead of rate decisions
The euro and pound gained against majors ahead of the announcement of November's rate decision by the ECB and BoE.
First, the BoE will announce keeping both interest rate and APF unchanged at 0.50% and 200 billion pounds, according to median estimates, then the ECB will probably do same.
The euro advanced ahead of the decision that will probably hold no surprise to markets unless Trichet mention something that affects the euro movements like talking about the dollar as he did last month when he said stronger dollar is in favor of the United States.
Moreover, both PMI services and composite showed progress in October, tracking the advance in manufacturing which raised hopes growth pattern in the fourth quarter will not be as slow as expected.
Concerning the euro-dollar pair, it is continuing its rise after the breach of resistance at 1.41 which took the pair to a high of 1.4263 while it fell earlier today to a low of 1.4100.
Meanwhile, the pair is trading at 1.4225, whereas the trading range for today is among the key support at 1.3965 and the key resistance at 1.4320.
Moving to the royal pair, it bounced for the second day to reach a high of 1.6205 where it retreated from there, while it fell earlier today to a low of 1.6082.
The pair is currently trading at 1.6140, while the trading range for today is among the key support at 78.40 and the key resistance at 81.50.
With regard to the dollar-yen pair, it slipped on the daily basis paring some of the gains accrued in the previous three sessions as the dollar was affected by the Fed's stimulus which exceeded estimates of $500 billion coming in at $600 billion till June 2011, ahead of the release of the infamous non-farm payrolls report tomorrow.
However, the yen remains under pressure on speculation the Bank of Japan will announce further measures tomorrow to keep borrowing costs low to prevent recovery from faltering.
The pair is currently trading at 80.95 after posting a high of 81.21 and a low of 80.73, while the trading range for today is among the key support at 78.55 and the key resistance at 81.15.
