Renewed talk of the Eurozone’s interest rate expectations ignited new pressure on the euro. Mr. Trichet’s remarks that he would not exclude lowering the rate below 2% came amidst new bad economic data and further signs of falling inflation for the Eurozone and Great Britain. Now the market is speculating that the ECB may cut interest rates even before March. Meanwhile, the old resistance lines for the dollar are being tested in the euro again, as well as in other majors. There are no signs yet for a sustained new direction or a real new market theme. So Forex still has an eye on equity markets, where the mood turned negative again in both Wall Street and Asian trading, supporting the USD.
For today’s trading we expect at least a downward correction move for the USD in the major pairs, as described below. Note today’s release of the U.S. GDP for the 4th quarter at 14:30 CET, where an ugly number of minus 5% (annualized) is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair continued suffering weakness in late Asian and early European trading and is currently priced at 1.2855. We do not expect much more downside risk in today’s trading, rather look for an ideal turning point, which we see as the 1.2800 level.
GBP / USD
Cable is in unusually stable trading, currently at 1.4305 in quiet market conditions this early European morning. We see the 1.4400 handle as the major resistance in today’s trading, which most probably won’t be broken. Downside support is at 1.4220 for today.
USD / CHF
The dollar continously gained strength against the Swiss franc in late Asian trading and consolidated its gains in the European morning trading, around prices of 1.1555. There is still a slight bid tone in the market, which we expect to fade out during today’s later hours, around 1.1590. A downward move then is in the cards, finding support at 1.1490.
USD / JPY
The dollar lost some further territory in Asian trading against the yen in low volatility and is currently priced at 89.50. We do not see much fresh impulse in the quiet trading today and expect a trading range between 89.70 and 89.20.
For today’s trading we expect at least a downward correction move for the USD in the major pairs, as described below. Note today’s release of the U.S. GDP for the 4th quarter at 14:30 CET, where an ugly number of minus 5% (annualized) is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair continued suffering weakness in late Asian and early European trading and is currently priced at 1.2855. We do not expect much more downside risk in today’s trading, rather look for an ideal turning point, which we see as the 1.2800 level.
GBP / USD
Cable is in unusually stable trading, currently at 1.4305 in quiet market conditions this early European morning. We see the 1.4400 handle as the major resistance in today’s trading, which most probably won’t be broken. Downside support is at 1.4220 for today.
USD / CHF
The dollar continously gained strength against the Swiss franc in late Asian trading and consolidated its gains in the European morning trading, around prices of 1.1555. There is still a slight bid tone in the market, which we expect to fade out during today’s later hours, around 1.1590. A downward move then is in the cards, finding support at 1.1490.
USD / JPY
The dollar lost some further territory in Asian trading against the yen in low volatility and is currently priced at 89.50. We do not see much fresh impulse in the quiet trading today and expect a trading range between 89.70 and 89.20.
