EUR/USD:
The European currency began the day higher and remains hovering above 1.3000 reaching as high as 1.3046. German Ifo Business Climate came in better than expected at 108.3 vs. 107.2, while it had been anticipated to come in at 107.6, and Italian Retail Sales dropped back to -0.3% vs. +0.2%, while it had been anticipated to come in at -0.1%.
In the meantime, the pair has a significant resistance which stands around 1.3050 followed by 1.3070, but technical indicators are heavily overbought, which could be a sign that the upside risk is limited during the day.
German Ifo Business Climate: Lagging business confidence indicator which measures the change in business sector confidence toward the economy based on surveyed manufacturers during the reported month.
Retail Sales: A leading indicator for the sales industry, the index measures the change in the total value of sales on a retail level during the previous month, excluding automobile sales.
United Kingdom
GBP/USD: Another disappointing economic release for the British economy, GDP figures showed that the British economy shrank Q4 by -0.2% vs. a growth of +0.6%, while it had been anticipated to shrink by -0.1% only, on the other hand MPC Meeting Minutes came in unchanged with 0-0-9 to hold monetary policy.
GBP/USD dropped back below 1.5600 reaching as low as 1.5533, while the obstacle support stands around 1.5550 which represents its 50 DAY Moving Average, and with such news, it means that further QE will be announced soon in order to boost the economy and to avoid double dip recession. The British pound is likely to remain under pressure today, the next obstacle support stands around 1.5500.
MPC Meeting Minutes: Bank of England board meeting which shows the total votes for the Interest Rate Decision and Asset Purchases Facility. This news has a significant impact on the markets especially if the votes come in calling for more asset purchases and further rate cuts.
Prelim GDP: A leading indicator for the economy as it measures the growth and change in the inflation-adjusted value of all the services and goods produced by the economy. The index has a significant impact on the markets during risk and normal market conditions.