The yen traded at 117.79 per dollar from 117.97

Good morning from Hamburg and welcome to our latest Daily FX Report. President Barack Obama was interrupted several times by hecklers during a speech on his immigration policy on Tuesday, and their complaint was that his plan did not go far enough in protecting illegal immigrants from deportation. At least four hecklers, all of them women, yelled at the president at the Copernicus Center where he had gone to promote his go-it-alone immigration plan that will remove the threat of deportation for up to 4.7 million illegal immigrants. Obama had gone to a Polish neighborhood to stress that the immigration problem in the United States is not restricted to Latinos and that there are people from around the world who are in the country illegally, such as Poles and Irish.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

U.S. shares retreated yesterday as an unexpected drop in consumer confidence offset data showing the world ́s biggest economy grew faster than previously forecasted last quarter. The Standard & Poor ́s 500 Index slipped 0.1 percent following three days of gains. Futures on the measure were little changed today. West Texas Intermediate prices fell to the lowest level in more than four years. WTI for January delivery dropped $1.69, or 2.2 percent, to $74.09 a barrel on the New York Mercantile Exchange, the lowest settlement since September 2010. Australia ́s dollar traded 0.4 percent from a four-year low as central bank officials continued to call the currency overvalued amid a slump in iron prices. It was little changed at 0.8548 today from 0.8530 yesterday when it touched 0.8514, the least since July 2010. The yen extended gains from near the weakest in seven years against the U.S. dollar before Bank of Japan board member Sayuri Shorai speaks today. The yen traded at 117.79 per dollar from 117.97, following a 0.3 percent gain in New York. It dropped to 118.98 per dollar on November 21 after a report showing the economy slipped into its fourth recession since 2008 fueled speculation the Bank of Japan would extend its stimulus program. The currency ́s slide has been amplified by the U.S. Fedral Reserve ́s plans to raise interest rates as soon as next year, which are supporting the dollar. It has now depreciated at least 16 percent against all 16 of its most-traded peers in the past two years. The euro held a two-day gain versus the greenback before euro-area inflation data this week. It was little changed at $1.2481.

Daily Technical Analysis

XAU/USD (Daily)

Looking long-term, Gold has experienced a high volatility and the price moved to a low at around $1130. There doesn’t seem to be a reliable support level, as the price dropped during the last weeks almost by more than 100 dollars. The CCI is showing that the the pair is highly oversold and a movement to the Center line is likely. The price touched recently the lowest Fibonacci resistance level (38.2) and was not able to break through it. It is likely that it will try to reach the second resistance level.

Support & Resistance (Daily)