Yesterday saw talks between Greek leaders and the ECB, as Greek leaders push for a renegotiation of their bailout programme. In the early hours yesterday, talks seemed positive as EUR/USD sat just below the 1.15 mark. However this was premature to the ECB announcing that there will be little room for Greece to manoeuvre on its bailout programme, this once again emphasised uncertainty in the Eurozone, after positive remarks from Greek leaders became misleading to the actual result. EUR/USD plummeted from the 1.145 mark to just above the 1.13 handle, with the USD index able to pare back losses from the previous day. The GBP saw intense strength yesterday as traders have seen a bout of positive data from the UK in recent days, as traders speculate a more positive monetary policy statement today from the UK.

This morning saw the release of European Economic Growth Forecasts, showing much more positive signs for the Eurozone, with growth being revised up from 1.1% to 1.3%. EUR/USD was able to make a short gain to the 1.145 handle, and is now consolidating just below this handle with a possibility of making another break. This is after severe losses from yesterday’s session, and the fear of the currency pair being oversold in the long-run.

Today’s focus will rest on the BOE monetary policy statement as traders hope for a more hawkish tone after the recent bout of positive data from the UK. GBP/USD is now trading just below 1.525 handle with some strong resistance at this level and GBP/JPY is trading just below the 179 resistance mark. The results of the monetary policy statement is likely to see the fate of these currency pairs, with a hawkish tone likely to allow a break above these resistance levels, while a dovish tone likely to see a bounce to the downside.

Later will see the U.S release jobless claims data, however with NFP occurring tomorrow there is unlikely to be much volatility on these market sentiments.
Oil has made a bounce after finding some support, with WTI bouncing above the 48 mark. This is after massive losses occurred yesterday, after previous day gains with WTI reaching as high as 54.3. USD/JPY therefore suffered some losses yesterday, however as been able to start its route to the upside with oil finding some support. USD/JPY is currently consolidating between the 117 and 117.5 handles, with U.S. open likely to decide its direction.

That’s the wrap for today, Good Luck with your trading endeavours.