After the US dollar had a moment to catch its breath yesterday the greenback has given back most of its gains in early European trading.
Today’s Economic Data Releases:
EUR – Retail Sales – 09:00 GMT
Expectations: 0.4%. Previous: -0.9%.
European retail sales for the month of April are forecasted to show a modest gain after falling in March. A stronger than expected reading may help to support further euro gains that have been booked this morning, though that could quickly change as Thursday’s ECB policy meeting approaches. Currently the EUR/USD is testing the resistance at 1.4660 from last Friday’s high. A break here and the pair could climb to the next resistance located at 1.4760 off of the late April/early May lows. Support is found at 1.4450.
USD – Fed Chairman Bernanke Speaks – 19:45 GMT
Bernanke is scheduled to give a speech touching on the US economic outlook later today in Atlanta. Given the recent downturn in US economic data traders will be looking for an adjustment in the Fed Chairman’s wording, specifically on the pace of economic expansion. Any retreat in US growth expectations may be met with dollar selling. USD/JPY support is located at the May low of 79.56.
Read more forex trading news on our forex blog.