The economic calendar today has seen few important economic events, except the final reading data for GDP in the United States, where the economy grew by 1.4% in the first quarter on an annualized basis. Personal consumption figures were revised up to 1.1%, while investment growth was revised down slightly.
The data is likely to have a limited impact on the Fed's policy, especially in terms of growth, as consumer spending data boosted expectations that the slowdown will be temporary. Overall, the USD was very weak during today's trading against most of its rivals.
The highlight of the market today was as following; the EURUSD rally again to test the current resistance level of 1.1424 and exceeding this level would send prices much higher targeting 1.15 / 16 as markets prepare for a shift in ECB policy.
Also, the GBPUSD rose despite the divergence in the BOE officials' comments, which led to market turmoil, bringing the pair back to 1.30 levels. The Bank's chief economist said today that interest rates raise should be seriously considered, Yesterday Carney pointed that the bank is ready to abandon its easing policy as conditions permit.
The US dollar was fairly strong against the Japanese yen, rising towards the downtrend line on daily basis near its highest level in nearly a month and a half at 112.92. In contrast, the greenback was weak against the Canadian counterpart & is currently trying to break a very strong support level at 1.30 and if broken, the pair could see a strong decline that might target the 1.28 / 27 levels.
Oil prices continued to rise to reach their highest level in two weeks and currently trying to exceed the resistance level at 45.20$, stabilizing above this level is likely to head towards the next resistance level at 46.70$ a barrel, failing to exceed the current levels will push prices back to levels 44$ before rebounding.
Gold is currently trading near a strong support level at 1240$ per ounce, which may determine the direction of the yellow metal in the coming period, as if this level provides support for Gold we would see it rise strongly towards the level of 1260 dollars, but the break down will push it to return till levels of 1220 Dollars.