Varengold Bank Research Team
Varengold Wertpapierhandelsbank AG
Good morning from beautiful Hamburg and welcome to our last Daily FX Report for this week. Google Inc is laying the groundwork for a version of Android that would be built directly into cars, sources said, allowing drivers to enjoy all the benefits of the Internet without even plugging in their smartphones. The move is a major step up from Google's current Android Auto software, which comes with the latest version of its smartphone operating system and requires a phone to be plugged into a compatible car with a built-in screen to access streaming music, maps and other apps. The first such vehicles will debut in 2015.
Anyway, we wish you a successful trading day and a relaxing weekend!
Market Review – Fundamental Perspective
Fed Chair Janet Yellen said policy makers are likely to hold rates near zero at least through the first quarter even as the U.S. economy strengthens. The clarification of policy plans boosted equities and emerging-market nations ́ currencies that may lose investment should rates rise n developed countries. U.S. stocks rebounded from losses over seven days that erased $1 trillion from equity prices and coincided with a 15 percent drop in benchmark crude between Dec. 5 and Dec. 16. S&P 500 energy producers tumbled 8 percent over the stretch. The broader gauge closed at 2061.23 yesterday, 0.7 percent below a record. WTI fell to $54.11 a barrel in New York, the lowest settlement since May 2009, while Brent slid 3.1 percent. Should it continue, the recovery would mark the fifth time this year that S&P 500 has come back after falling more than 4 percent from a high. In comparable drops beginning in January, April, July and September, the index needed about a month to erase losses.
The yen slumped more than 2 percent over the past two days versus the greenback, as the Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, climbed, touching its highest level since March 2009. The Japan ́s currency depreciated against 27 of the 31 most-traded currencies since mid-year as well as all its Asian peers as the Bank of Japan expands the money supply to encourage growth. Switzerland ́s franc was little changed at 1.2038 per euro after sinking the most in about 18 months yesterday as the nation imposed its first negative deposit rate to stem the tide of money flowing from Russia ́s financial crisis. The ruble weakened 2.1 percent against the dollar last session, after surging 11 percent the day before. The currency reached a record-low 80.10 per dollar this week.
Daily Technical Analysis
EUR/CHF (Daily)
The Swiss currency is a desired place for risk averse investors against the background of current political situation in the world. This explains the strong downward trend under a Fibonacchi fan of resistance. The price was not able to break significantly through the first resistance (38.2). The Swiss National bank hast stated to do everything to create a support line at 1.20 and to not let the price fall below it. The CCI is moving around zero.
Support & Resistance (Daily)
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