Good morning from beautiful and cold Hamburg. The FOREX-Market will be stimulated today by the rate decisions of the Bank of England and the European Central Bank. It will be expected that the ECB will not change their rate level. In the U.K. some analysts expect a rate cut between 50-100bps. However, we wish you a successful trading day.
Market review
Speculation on the economic slump in Eastern Europe pressures the EUR/USD on Wednesday. Besides the European retail sales fell 1.6 % in December from an earlier year which the EUR/USD additional bonded. The currency pair fell from 1.3040 at its opening to 1.2813 at its lowest level near its two-month low. Also the EUR/JPY declined on continuous gambling that the ECB prepare the World for further interest rate cuts this year. The EUR fell yesterday against the JPY 1.48 % to 114.90 at its closing.
After a report showed the U.K. services industry contracted less than expected in January the GBP rose versus the EUR to 0.8881 and closed nearly unchanged against the USD at 1.4468.
The NZD/USD released its gains from Tuesday. It was powered by the New Zealand government as they reported that jobless data were better than expected. The unemployment rate increased to 4.6 % having a survey showed that most of the economists expected an increase to 4.7 %. The AUD climbed versus the EUR to a one-week high after the Baltic Dry Index gained and signaled demand for raw materials so the nation export is maybe recovering.
EUR/CAD
Near to the lower Bollinger Band the EUR/CAD has been trading in a small range and tested its support a 1.5644 for several times. Having the lower Bollinger Band crossed the supportline it’s possible that the currency pair will follow and retest the support. If this line will be strong enough it could be the basement for a new attack to the resistance at 1.6223
GBP/AUD
The currency pair could leave its bearish movement on the 9th of January and it seems that after building a basement the GBP/AUD will try to climb over its first resistance at 2.3000. If this resistance breaches it could boost the bullish trend and creates more fantasy to rise up to 2.4090. Further bullish trend signals could come from the MACD which crossed the zero level.
