Whatever is concluded this weekend at the G20 meeting to find a new global financial order, it most probably will not be remembered as the Washington Accord, a.k.a. Bretton Woods II. Although some trigger-happy regulators see their star rising over many pastures, it will not be the Forex pasture, since this market was certainly not at the center of this financial crisis. More likely is the forming of a central clearing house for the credit markets and their derivatives, and new bank accounting standards, so more a form of a Basle III, not Bretton Woods II.

This European morning, the USD developed a slight bid tone in the major pairs, which we see continuing in today’s trading. See the details below. Although usually a market mover, the 14:30 CET release of U.S. retail sales will probably not have much of an effect on Forex today, should it show a negative development again.

by George Clement

Intraday Market Outlook for Day Traders

EUR / USD
The pair declined in European morning trading and is currently at 1.2676, near a minor support at 1.2665. We see the mild selling tone continuing in today’s trading, first below 1.2665 and eventually finding support at 1.2575.

GBP / USD
In very low volatility (and in sharp contrast to the previous days), cable is caught in a narrow trading range this European morning between 1.4890 and 1.4820. We expect the downside support at 1.4820 to be broken in today’s trading, leading to prices around 1.4700.

USD / CHF
The dollar gained a little versus the Swiss franc in early European trading hours, starting a slow upmove from 1.1850 to the current 1.1900 level. This movement could well continue in today’s trading. We see it testing the 1.1990 level on the upside, near recent highs.

USD / JPY
The dollar recouped its losses yesterday very quickly in Asian trading and is currently priced at 97.18 and consolidating. We expect the old resistance point at 98.20 to be tested today but not broken.