Good morning from beautiful and cold Hamburg. Today, there are important news about the Euro-Zone and the United States, which could have an impact on the FOREX market. However, we wish you a nice Thursday and successful trades.
Market review
The USD climbed versus the EUR and the GBP after the two-day policy meeting of the Federal Reserve. They kept interest rates near zero and said they are prepared to buy long-term Treasuries to improve credit markets and boost the U.S. economy. In addition, the central bank started a $500 billion program to buy Fannie Mae, Freddie Mac and Ginnie Mae mortgage securities. The USD could also rise against the JPY after the White House passed President Barack Obama’s $819 billion bailout package. The EUR/USD fell to 1.3085 from 1.3166, while the GBP/USD dipped to 1.4153 from 1.4247. Today, the USD-Index rose 0.3 % to 84.887.
Before the Fed’s announcement ECB President Jean-Clause Trichet said in an interview at the forum in Davos, that the “important” bank meeting will be in March, suggesting that the policy makers will avoid an interest-rate cut next week. The EUR/JPY dipped to 117.95 from a dayopening of 119.06 after touching a low of 117.61.
The NZD/USD touched a six-year low as the RBNZ reduced rates by 150 bps to 3.5%, which was larger than expected. The NZD/USD dropped to 51.53, which was the lowest level since December 2002. The AUD/USD also fell 0.9% to 66.01. As well the market is expecting that the RBA will cut rates by 100 bps to 3.25 % at the policy meeting at February 3rd 2008.
AUD/NZD
Since the end of July, the AUD/NZD has been trading in Fibonacci retrecement lines. Shortly after the market touched the 61.8% level at the beginning of the year, it increased and broke the 76.4% level. Now the market is trading at 1.2716 and it could rise further towards the 100% level near 1.3000.
CAD/JPY
During the past four months, the CAD/JPY has been trading in three Fibonacci fan lines. After being supported by the lower Fibonacci line during the middle of January, the market came back and touched the 75.00 resistance and the middle fan line. If the pair break trough these to lines, it could rise further towards the upper Fibonacci fan line.
