Federal Reserve Bank Governor Powell’s dovish comments on Friday regarding future tapering saw a renewed interest in buying risky assets to kick off trading in this week’s Monday’s Asia session. Both EUR/USD and GBP/USD are testing last week’s highs early in the London session and look to remain supported throughout the trading day.
German inflation figures did come in slightly higher than expected at 3.9% Y/Y (versus 3.8% expected). Pending home sales figures in the United States later today are looking to bounce back after a contraction last month of -1.9% (Expectation: 0.4%). EUR/USD could extend it’s gains on the day after the release.
With much uncertainty still surrounding the US and UK position in Afghanistan, Gold remains well supported above the $1800 per ounce level with it’s next target coming in at weekly resistance at $1832. Support holding well early in the London session at $1813.