Good morning from beautiful and cold Hamburg. Hopefully you enjoyed the first weekend in 2009 and you can start relaxed in the new week. We wish you a prosperous week and successful trades.
Market review
The USD increased to a three-week high against the JPY and trades currently at 92.00 which is 5.54 % higher than its all-time low on 17th December at 87.14 based on speculation gains in global stocks which will give investors confidence to buy higher-yielding assets. JPY also fell against AUD and NZD to 65.50 rather 54.23.
EUR/USD fell to a two-week low as U.S. President-elect Barack Obama crafted a package of infrastructure spending and tax cuts to create 3 million jobs. As well the European Central Bank Vice President Lucas Papademos said that further interest rate cuts may be necessary, even though the ECB had reduced its key interest rate in December by 175bps. The EUR/USD fell since the 18th December about 5.95 %.
AUD/USD rose to 0.7160 at its high today from 0.7112 at Friday closing. The strong regional stock gains after the U.S. rise on Friday helped the currency pair. The NZD rose against most of major currencies on Monday morning in early Asian trading. NZD/JPY climbed to a seven-week high and trades currently at 54.27 from 47.79 at 5th December. As well the CAD/JPY climbed to a multi-week high from 70.60 at 5th December to today high at 76.50.
GBP/AUD
The GBP/AUD traded since the middle of October in a strong bearish trend alongside the lower Bollinger bands. Now it seems to test the support-line at 2.0443 and should this line will be broken the bearish trend could be boosted and in order of this the GBP/AUD could fall to a new all-time-low.
EUR/JPY
Since end of September the EUR/JPY traded in a trend-channel between 130.80 and 113.70. Now it seems that the currency pair keeps over the middle Bollinger bands in a bullish trend. Maybe when the upper bands could breach, as you can see at the red circle, it could be a further bullish signal to leave the trend-channel.
