Crude oil slid

Good morning from Hamburg and welcome to our first Daily FX Report for this week. About 190 nations agreed on Sunday the building blocks of a new-style global deal due in 2015 to combat climate change amid warnings that far tougher action will be needed to limit increases in global temperatures.Under the deal reached in Lima, governments will submit national plans for reining in greenhouse gas emissions by an informal deadline of March 31, 2015 to form the basis of a global agreement due at a summit in Paris in a year's time. Most of the tough decisions about how to slow climate change were postponed until then. "Much remains to be done in Paris next year," French Foreign Minister Laurent Fabius said.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

Crude oil slid, extending declines from a five-year low amid concern over waning global demand for the commodity. West Texas Intermediate oil sank 2.1 percent to $56.62 a barrel during the night, dropping to a fourth straight day as Brent crude fell 1.6 percent. Oil prices have tumbled by more than $40 a barrel this year as U.S. shale output contributes to a global glut amid forecasts for a drop in demand. WTI extending losses below $60 ignited a selloff in U.S. equities December 12, with the Dow Jones Industrial Average erasing 100 points in the last hour of trading. OPEC, which last month resisted calls to cut output amid the rout in oil prices, will stand by its decision even if crude sinks to as low as $40 a barrel, United Arab Emirates Energy Minister Suhail Al-Mazrouei said. Venezuela supports holding an emergency meeting of the OPEC but hasn´t officially requsted one, an official at the country´s foreign ministry said Dec. 12. Abe´s coalition won about 325 seats in the 475-seat chamber, the same as before the snap national election. The victory, which comes amid a recession in Japan, means Abe need not call another election until 2018, putting him on track to be the nation´s longest-serving premier in 40 years. The yen gained 2.2 percent versus the greenback last week, its first five-day advance since mid October. It jumped 0.7 percent to 147.01 per euro today, after declining 0.9 percent the previous two trading days. The Dow sank 1.8 percent Dec. 12, while the S&P 500 retreated 1.6 percent to bring it first weekly loss sonce the five days to Oct. 17 to 3.5 percent. With less than six weeks to go before the ECB´s next monetary-policy meeting, President Draghi´s drive to corner dissent on more stimulus is takind on added urgency.

Daily Technical Analysis

GBP/USD (4 Hours)

As the chart shows, the GBP decreased steadily versus the USD since the mid of October. The support line at 1.5595 was strong enough as the price was unable to break through clearly and rebounded. Although it slipped once below this support line it immediately returned in the sidward channel between 1.5804 and 1.5595. On a short term the CCI is indicating a possible upward movement, but further losses may occur.

Support & Resistance (4 Hours)