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Market Opinion

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Euro − U.S dollar volatility.

Mon, Dec 29 2008, 20:12 GMT
by James Whyte

ForexAmericas


Market View
As the Israeli strikes on Gaza continues, oil is trading higher up 1.36 currently. The retailers continue to be the center story for this holiday season and end of year. Retailers continue to cut prices to attract last minute buyers to boost net sales for the end of 2008. It is forecast that 73,000 retailers will close their doors in the first half of 2009.

In focus today:

  
Gbp/Usd: We continued to see weakness overnight in the Pound. The pound has been on a downward trend this week and currently at a new low of 1.4485. We should see supporta at this level but the direction of the Dow Jones is not helping the Pound. The next valid support comes in at 1.4440-50.
   


Usd/Jpy: Dollar Yen has been trading in downward presure, breaking the support trendline at 90.50 and reaching a low of 89.75. Given the lack of economic data, these have been moves due to the thin markets.

   
Eur/Usd: The Euro has been very active on overnight trading, reaching a high of 1.4360 and trading back down 300 plus pips soon after that. Right now the Euro sits below the open rate, and we are uncertain of the trend for the rest of the week. As of now 1.4010-20 is holding very well as its first immediate support.
   

Aud/Usd: Oil has been trading higher today, up 1.36. This move has taken the Assie higher and breaking out of the .6885 resistance levels. In late NY trading we are seeing the currency retrace to open rate. Next valid support is .6830.

 


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