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All eyes on the ECB.

Mon, Jan 12 2009, 23:23 GMT
by James Whyte

ForexAmericas


Market View 


Another rough day on Wall Street as stocks head lower today, due to the continued weakness in financials. Citigroup closed down nearly 20 percent, leading the Dow Jones lower. Markets also lower on concerns about corporate profits. Oil close the day below $38 per barrel as the demand for the commodity slows down worldwide. Overnight the European markets ended the day marginally lower. The US dollar posted gains against major currencies on speculation the ECB will take the key interest rate lower this Thursday. It is expected the ECB will cut by as much as .50%. Market averages; Dow Jones -1.46%, Nasdaq -2.09%, S&P 500 -2.26%, FTSE -.50% and DAX -1.34%.

In focus today:

  
EUR/USD:
 This week all eyes are on the ECB meeting this Thursday. As we have noticed the Euro is feeling some pressure against most currencies and particularly the US dollar. The Eur/Usd has been trending lower since the beginning of the year and much more on the dollar strength ahead of the Non-farm data from last week. Currently trading at levels from December 11/12, 08', the Euro does have some support at 1.3290 and from there at 1.3075 on a trend line. Resistance comes in at 1.3540 on the 23.6% Fibonacci retracement and a resistance trend line a bit higher.Euro


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