GMT 3:30 - EURO @ 1.3047 = Two major events of the day are BOE and ECB monetary policy announcement, which will be followed by Draghi's press conference and this will keep market activity in a narrow trading band.
Recently UK's economy has showed signs of weakness. Pace of growth in housing sector has slowed down, its manufacturing sector is not in line with expectation, but still UK inflation remains too high and is a worrisome factor. Despite such economic condition if BOE decides to follow Fed's footstep and start discussing its exit strategy and BOE leaves its banks rat unchanged to 50 basis point and does not increase its asset purchase from current GBP 375 billion. Then this could give some life to Pound Sterling that should climb.
ECB is faced with difficult task as the regions economy is still unable to make a comeback. Manufacturing sector growth is still pathetic and unemployment rate is on a continuous rise. But weakening of Germany's economy could be scary for regions financial managers, as Euro-zone is largely dependent on German growth, which has the biggest share. However, since OMT plan announced by Mario Draghi though not launched as yet is still working well because of stability in the bond market, ECB many avoid rate cut and could wait to see that if new quarter can bring some respite. But market will be more keen on Drahgi's press conference and will try to pick clue about ECB's economic strategy.
EURO @ 1.3047 = Initially I am expecting 1.3020-25 to hold, but 1.2975 should not surrender for another test of 1.3070-80 zones, probably beyond. However, later in the day I will not be surprised to see a push towards 1.3150.
GMT GOLD @ $ 1657 = I am expecting gold to trdae in a $ 1652-62 band and I prefer o pick the top to sell. As long as $ 1670 hold I see gold to remain under pressure. Break of $ 1644 will pave way for $ 1632.
GMT 3:38 - JPY @ 88.11 = Tone remains weak should hold 87.80 for test of 88.35-40 zones. Break of 87.50 could delay
GMT 3:36 - AUD 1.0545 = Should hold 1.0520. looking good fior a test of 1.0580-90 zones
GMT 3:34 - GBP @ 1.6014 = Buy around 1.5990-00. STOPS 1.5960 for move towards 1.6050 or 1.6075-80. Break of 1.6120 risk for big upmove.