Reduced volatility across all major currency pairs yesterday as the beginning of the week had no new developments and the US markets were also closed for Presidents Day.

During the European hours, the Euro retained its earlier gains and continued to hover around the 1.3720 level forming a tight sideways pattern. The European currency will have the chance to exit this pattern today as we expect the release of the ZEW survey that discusses the current and future economic outlook for Germany and the Euro area.

On the other hand, as we discussed yesterday the Pound declined against the US Dollar as the British currency was largely overbought and a correction lower was necessary. Traders took some profits off the table as the Pound reached 1,6800 on Monday’s Asian session and that drove Cable down to 1.6700. We remain bullish against the Pound ahead of the release of the Bank of England’s minutes from their last meeting. More on that in our Analysis section below.

The FTSE 100 was back in positive ground and the UK index has cleared above the 6,700 points again and it looks as if it still has a long way to go especially if the BoE minutes reveal policymakers’ optimism over the UK economy. We remind you that in their last meeting they abandoned the unemployment rate threshold for raising interest rates and significantly upgraded their growth forecasts.

British inflation and the ZEW survey expected

The Economic Calendar for today holds a couple of important economic events and the day will begin with the release of UK’s Consumer Price Index. The index measures inflation levels and recently the UK has shown healthy levels of inflation which is positive for the Pound. Today’s release is expected to come in line with recent figures and if this happens then we could see the UK currency gaining back the ground it lost yesterday.

Also early this morning, the ZEW survey will be released. The report discusses the current and future economic outlook for Germany and the Euro-zone and expectations make word for a positive printing that could help the Euro clear the 1.3700 level. The US market hours only have to offer a second tier housing index that will do little to change the current state of things for the US currency.

Economic Calendar

TECHNICAL ANALYSIS & LEVELS

EUR/USD

GBP/USD

FTSE 100

Gold

This is the freely distributed Morning Brief section of the NewsletterPro report, a subscription-based product.
If you would like to receive the full version of the report along with specific trading suggestions, please subscribe by clicking here

Disclaimer Notice

Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.

The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite.

InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.