Good morning from beautiful, stormy and cold Hamburg. Fortunately, Hamburg was untroubled by the snow-chaos which had paralyzed London yesterday. However, we wish you a prosperous trading day.
Market review
The EUR traded near an eight-week low versus the USD. Today economists are expecting a report that will point out that European producer prices fell for the fifth month. Therefore the gambling rise that the ECB have more room to cut interest rates. While the EUR/GBP climbed on concern a U.K. report will indicate construction shrank last month at the fastest pace in more than a decade. The U.S. Commerce Department said personal spending fell 1 % in December accompany with a boosted savings rate which rose to 3.6 %, the highest level since May 2008.
The USD/JPY traded near the lowest level in the last week based on speculation credit losses will widen after Standard & Poor’s cut the ratings on 737 classes of subprime mortgage bonds to D, its grade to default. Today, the USD recovered against the JPY and rose to 89.91 in the late Tokyo trading.
Australia’s government will spend 42bln AUD on grants and infrastructure to prevent the economy entering the world’s recession. The package is being spread over the next three fiscal years. Australia’s central bank cuts its target interest rate to its lowest level since 45 years to 3.25 %.
EUR/AUD
Since the beginning of 2009 the EUR/AUD has been trading in a bullish trend-channel and breached at least its resistance at 1.9964. It seems that the trend-channel is still faultless and maybe it could rise up to the upper Bollinger Band. Should the trendchannel support get lost there its next support could be at 1.9964 and 1.9464.
USD/JPY
Having the USD/JPY crossed its bearish trend-channel the currency pair has been trading in a small range between 91.03 and 87.13. If the USD/JPY could jump over its resistance at 91.03 it could be a signal for the beginning of a bullish trend. As well a bearish signal could be that the Momentum Indicator crossed the Moving Average.
