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Currency Analyst since 2010

Plan your trading day - June 26

By Mark Jensen

Tomorrow there will be no economic releases during the Asian session, so trading will depend entirely in the market’s sentiment. Iraq remains a not spot. Syrian government aircraft bombed Sunni militant targets inside Iraq on Tuesday. The situation in Ukraine is also still tense. Russia’s President Vladimir Putin formally took Russian military intervention in eastern Ukraine off the table, but there are reports about occasional fighting.

Aussie and kiwi have been supported, but they’ve actually come to resistance levels – at $0.9400 and $0.8740 respectively.

Traders will also probably continue mulling over the weaker-than-expected data from the United States as American GDP slid 2.9% in Q1, showed the final data released today, accompanied by a slump in durable goods orders. Although everyone knows that the nation has suffered from the bad weather in the winter months, economists weren’t expecting the decline to be so big, although the reluctance of the Fed to hint on rate hikes and the recent cautiousness of the Fed Presidents Dudley, Williams and Plosser should have rung a warning bell. Pay attention to American personal spending data due at 12:30 GMT as it has an impact on inflation. For USD/JPY bears might increase pressure on support at 101.60 (the next level lies at 101.32).

During the European session attention will be drawn to Mark Carney’s speech at 09:30 GMT. So far we’ve heard a lot from the Bank of England, generally the comments were hawkish. GBP/USD has potential to rise to $1.7040. There will be no news from the euro area: EUR/USD may drift up towards $1.3680 as there’s encouraging forecast for the euro zone’s CPI on Friday.

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