Daily Forex Analysis by Finexo.com 17/06/2010

Today is expected to be a very busy say, as many key numbers and events are scheduled to be released. The Swiss central bank is expected to keep its benchmark interest at 0.25%; however, SNB rhetoric on a future course of action could be significant.

Across the Atlantic, the U.S will release its CPI figure as well as the Philly Fed manufacturing index. Both of these key economic numbers could be helpful in determining a future monetary policy action by the Fed. Better than expected numbers could boost the dollar, as the Fed would be less concerned about the frailty US economy, and would instead be more focused on an exit strategy.


After failing to break above the 1.2350 mark, it appears that the Euro’s rally may be coming to a halt. The single currency fell yesterday, as renewed concerns about Spain’s fiscal situation as well as the European banking system pulled the currency down from its two week high.

Traders will be watching the Spanish bond auction today after the spread of Spanish government bond yields over benchmark bonds soared to a an all time high yesterday – the country is scheduled to sell 2020 and 2041 year bonds. Moreover, any commentary from the EU summit today, in terms of policy gauging to address EU debt problems, could have a significant impact on the single currency zone.

Support/Resistance 1.2255/1.2310


The pound lost ground yesterday, despite the improvement in UK Jobs numbers. Yesterday’s claimant Count Change, which shows the number of people claiming unemployment benefits, dropped by 31K people – the fourth month in a row that such an improvement is seen. Nonetheless, the cable retreated from a high of around 1.4850 to find support at 1.4690.

Up ahead, today’s release of the monthly Retail Sales for May could have a significant impact on the British currency. This major consumer related figure increased slightly in the past two month, reflecting the nation’s weak economic growth. This time around, the market predicts a slight rise of 0.1%. While a better than expected number could boost the Pound, a drop in the number could bring the currency under renewed selling pressure.

Support/Resistance 1.4690/1.4760

Written by Finexo.com