Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Dec 04 08 09:19 GMT |

Good morning from wonderful Hamburg. Today we have two very important rate decisions by the ECB and BoE. Nevertheless we wish you a nice Thursday with a better weather than in Hamburg Markets review The JPY and the USD traded little changed against other major currencies before the important interest rate decisions in the euro zone and Great Britain. But the EUR and the GBP remained vulnerable before the rate decisions by the central banks, while there are still expectations on aggressively reductions. Yesterday the GBP/USD lost 0.9 % and once more 0.25 % in the morning session because of rumors in the market about a rate cut of 125 basis points. Additionally economic data showed that the service sector shrank faster than expected in November. Also the European retail sales decreased more than expected by 2.1 % in October; data showed yesterday and confirmed the assessment that the financial turmoil took its toll on consumer confidence. The EUR/USD dipped 0.3 % from its opening at 1.2709 on Monday. According to a report, Japanese companies cut investments in the third quarter by 13 % compare to last year. Leading economists expect the country's gross domestic data, which has already initially shown a contraction, will be adjusted lower. The RBNZ reduced interest rates by a record of 1.5 % points to 5 %. The fourth cut since July, is the biggest since the official cash rate was instituted in early 1999. However this move was widely expected. The NZD/JPY is down by 0.5 % on the day and reached a low at 49.40. In a result the currency decreased 5 % this week Technical analysis NZD/USD Since the end of September the NZD/USD has been trading in Fibonacci retracement lines. After touching the 0.0 % retracement line twice, the market pulled back and touched the bearish trend line for the second time. If the market breaks through the 0.0 % retracement level it could continue the falling under the bearish trend line EUR/GBP Since the middle of November, the EUR/GBP has been trading in a horizontal trend channel. After breaking through the bullish trend line and touching once the support line at 0.822, the market came back and is now trading near the 0.864 resistance level. If the pair doesn't break the resistance line it could sink towards the 0.822. Pivot Points - Daily FX Support and Resistance Levels Daily Calendar & Key FX Events Varengold Bank IMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THIS DOCUMENT This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational urposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.