Not much is expected to be going on news wise today until later in the day when key US data is released. US Initial Claims will be released before the start of trading in the US, followed by Philly Fed and Existing Homes Sales data. Also, a three day G-20 Meeting begins today. Proposals for boosting the IMF’s funds will be talked about at the meeting. Overall though, the current session is a preparatory meeting for the June conference of G-20 leaders.
Elsewhere, Forex traders are watching the GBPUSD this morning. The pair successfully traded and closed yesterday above the critical 1.6000 resistance level, thus opening the door for a continued breakout higher (more on Yesterdays rally: GBPUSD nearing 1.6000 following UK data). The trading action suggests that Forex traders that were supporting the pair at 1.6000 are stepping up with their demand. As such, the pair looks like a solid buy on the dip candidate going forward as long as 1.6000 holds.
In regards to the EURUSD, the pair is holding around 1.3100 this morning. Forex traders are awaiting the outcome of a Spanish debt auction. Depending on the final yields of the debt sale, it could affect today’s overall direction in the EURUSD.