Good morning from wonderful Hamburg. Barak Obama is the new President of the United States of America. About 125,000 supporters of Obama were gathered in Grant Park for a celebration rally on Tuesday evening. There are new expectations how the market could move after this important massage. However we wish you a nice day and hope for successful trades.
Market review
The ECB Executive board member Stark told Germany’s Financial Times, the Euro zone will be very weak. Well in 2009 the oil prices could push inflation briefly into negative territory. But the ECB will try their best on its disposal, including interest rates, to save the situation, he adds. His comments are in line with expectations for the repetitive rate cut of the ECB on Thursday. The EUR / USD was up at the day-opening over the 1.30 level but it trades now around 1.2840. The pair rose about 3% on Tuesday. This was its biggest one-day rise since the launch of the single European currency in 1999.
The USD / JPY could slip to the 80 level. Carry trades depressed the Japanese currency up to several years, some traders said. The JPY rose 11.6% against the USD this year, because investors have unwound investments funded by the low-yielding Japanese currency. Currently the pair trades at 99.44 after touching a day-high of 99.92. However the USD-index is up 1.1% to 85.511 after US media projected that democrat Barack Obama is going to be the new President of the USA. The initial reaction of Obama’s win could suggest further wins in the USD and JPY, some traders said.
AUD / CHF
Since the end of July the AUD / CHF has been trading in Fibonacci retrecement levels. After touching the 0.0% support level the market rebounded and trades now at the 38% resistance line for the third time. If the market goes through this line we could expect further rising movements on the way to the other retrecements.
EUR / CHF
Since the beginning of October the EUR / CHF has been trading in a very strong bearish trend channel. After breaking through the upper trend line the market rose further and trades now near the 1.52 resistance line. According to our MACD analysis the market could break the resistance line and rise further.
