Good morning from beautiful and cold Hamburg. Around the world circulate a lot speculation how deep the World’s economic recession will really be and which country can protect its economy effective. It seems that this question affect the FOREX market powerful at the present. However, we wish you a prosperous trading.
Market review
AUD/JPY and NZD/JPY rose to its highest level since November 2008 based on optimism U.S. President-elect Barack Obama’s economic stimulus plan which will help to recover the United States from recession. The head of currency strategy at National Australia Bank Ltd., John Kyriakopoulos, wrote according in a research “Reduced pessimism on the global economic outlook is evident”. Also the AUD/USD climbed to a three-month high at 0.7267 from Tuesdays closing at 0.7175.
The last three days the EUR/USD fell temporarily 5.30 percent to its low at 1.3313 and rebound to 1.3536 on Tuesdays closing while the Euro-Zone Consumer price index rose 1.6 % in December. On early Wednesday Tokyo trading the currency pair was under considerable strain again and fell to 1.3432. As well EUR/JPY weakened as derivatives showed that some investors are betting the ECB will lower its key interest rate next week. The EUR fell versus JPY 1.74 percent to 125.10 at its low on Wednesday.
GBP gained versus a basket of major currencies based on speculations the interest-rate cuts will revive the British economy faster than economists expected. EUR/GBP fell from 0.92741 at its opening to 0.90695 at its closing.
GBP/USD
The GBP/USD traded since September 2008 in a strong bearish trend and breached for several times the lowest Bollinger bands. After GBP/USD crossed the middle Bollinger bands yesterday it seems to test to break the downward trend-line which could assist a turnaround.
EUR/USD
On 5th December EUR/USD lost its supportline at 1.3752 and fell until its next support at 1.3365 yesterday. Should this line breach the currency pair could boost its bearish trend. Another indicator for this could be the Oscillator which shows that now the longperiod line fell under the middle-line.
