Good morning from beautiful and very cold Hamburg, if we have a look out of the window we can see some stronger ice floe on the Elbe than yesterday. On Thursday most traders paid attention to the rate decision of the BoE and many important economic data. However, we wish you an exciting trading day and a nice weekend.
Market review
On Thursday the Bank of England cuts its key interest rate by 50bps to 1.5 %, the lowest level since the central bank was founded in 1694, to limit the fallout from U.K.’s first recession in 17 years. The GBP could rose against a basket of major currencies despite the rate cut because most analysts expected a larger reduction. EUR/GBP fell 1.55 % from its opening at 0.9034 to its lowest level at 0.8894.
The USD fell against major currencies before the U.S. payroll report will probably show that the economy lost jobs every month in 2008 and the unemployment rate rose to a 16-year-high. The EUR/USD gained from its close 1.3644 on Wednesdays to its high at 1.3799 on Thursday while Axel Weber, President of German Bundesbank, said “The final quarter of 2008 may have been worse than we expected”.
Canadian business and government spending fell less than expected last month, the Ivey purchasing managers´ index showed. The Index fell from 40.2 to 39.1 in November. USD/CAD rose 1.24 percent to 1.1859.
EUR/CAD
The EUR/CAD has been trading for the fifth day in a strong bearish trend and fell below 1.6334 which marked its new resistance line. It seems that only the lower Bollinger Bands bestow the EUR/CAD a small support. If this support would break, it could boost the downward trend assured by MACD which declined the zero-line.
EUR/CHF
The currency pair could leave its bearish trend and tested its resistance line at 1.5172. Now it seems the EUR/CHF conglomerate for a new attempt to cross its resistance. This assumes that the supportline at 1.4715 will be stable. The Momentum indicator climbed on its zero level and could give positive impulses.
