The Euro traded near a 10-week low against the dollar on concern the region’s banks will disclose increasing losses due to the deepening financial crisis in central and eastern Europe .Currency fell against the dollar on speculation Commerz bank AG, Germany’s second largest, and ING Groep NV, the biggest Dutch financial company, will report combined losses of more than 4 billion Euro ($5 billion) when they release earnings today British pound was actually one of the stronger currencies in the forex markets slipping only against the greenback, as the latest inflation data suggests that the Bank of England may be hesitant to slash rates to zero in the near-term. Though UK CPI fell 0.7 percent in January, the annualized pace remained well above the BOE’s 2 percent target at 3.0 percent, down from 3.1 percent in December. The BOE has indicated that they expect inflation to fall much further this year, but the direction of interest rate expectations for the UK may hinge upon the release of the BOE’s meeting minutes
Tech outlook:
EURO R1: 1.2750 S1:1.2500
R2: 1.2760 S2:1.2480
chart pattern indicates the currency to have a bearish note for the day. Trading range for the day is expected between 1.2520-1.2730 levels for the day. Stochastic is seen flat and currency is trading below the moving average and is expected to have a small upward correction as profit booking .
GBP R1: 1.4340 S1: 1. 4100
R2: 1.4350 S2: 1. 4070
chart pattern shows a narrow trade in the currency. With the trading range expected between 1.4110-1.4310 levels. Currency is trading on the lower bollingers but narrow band shows a range bound move. Stochastic is also seen flat.
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