Morning Forex Review – June 9, 2011

Coming up Today (All Times GMT)

• GBP – MPC Interest Rate Statement (11:00)
• EUR – ECB Benchmark Rate (11:45) & Press Conference (12:30)
• CAD – Trade Balance (12:30)
• USD – Trade Balance & Jobless Claims (12:30)
• GAS – Weekly Storage Report (14:30)

EURUSD

The EUR/USD pair lost some momentum on Wednesday following pessimistic comment from Ben Bernanke. The Fed Chairman expects some deceleration in US growth in the first semester but remains optimistic for the second half of the year. Meanwhile, the troika (UE, ECB, IMF) released its analysis of Greek Finance, concluding that current austerity measures aren’t achieving their objectives and need to be strengthened. Today, the ECB will hold its interest rate meeting and all eyes will look for a confirmation of a rate hike in July. If this move is confirmed, the EURUSD pair could extend its gains towards the $1.4700 resistance, while $1.4550 remains a major support.

EURUSD Support/Resistance: 1.4550/1.4700

EURGBP Support/Resistance: 0.8880/0.8950

GBPUSD

The Bank of England is expected to leave its benchmark rate unchanged at its MPC meeting today. Recent indicators from the British Retail Consortium have confirmed a slight decline in inflation pressures, which could reinforce the accommodative stance of the Bank of England. Technical wise, the pound is supported by the $1.6350 level and could find bullish momentum if it breaks successfully above the $1.6460 resistance.

GBPUSD Support/Resistance: 1.6350/ 1.6460

GBPJPY Support/Resistance: 130.90 / 131.90