Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Dec 08 08 09:48 GMT |

Good morning from wonderful Hamburg. Hopefully you enjoyed your weekend, bought some Christmas gifts or visited the Christmas market. The last week was affected by the interest rate decisions around the World and we hope that the new week will be embossed by better news concerning the recession. However we wish you successful trades and a nice week Markets review The JPY affirms against the EUR and USD near to a six week high as a result of the discussion about the rescue package for U.S. automakers and the involved risks. In order of this the carry trades decline. The JPY/USD trades around 92.80 and the EUR/JPY near 118.30. Also the AUD/USD extended gains from last Friday after U.S. president - elect Barack Obama, announced another stimulus plan for the infrastructure, internet broadband, energy efficiency and health spending. As well he said that the U.S. recession may get worse and therefore some Japanese traders estimate that the FED could cut the interest rate at their next meeting about 50 - 75 bps. Today AUD/USD rose up around 1.7 percent in its day high and trades currently at 0.6570. Having the Bank of England cuts their interest rate last week to an historical low since 1951 the EUR/GBP trades in Asia in its high at 0.867 after closing on Friday at 0.8641. The CHF slipped against EUR on early Monday morning to a 2 - month low at 1.5573. Technical analysis EUR/USD The EUR/USD was trading from July to the end of October in a strong bearish trend. Now it seems to be at the bottom and it trades between 1.3011 and 1.2448. If the middle Bollinger Band breach, like in November, it could be a signal for a bullish trend. AUD/USD Since October the AUD/USD trades in a trend channel between 0.7050 and 0.6000. It attempt for some times to breach the upper resistance and went down close to the middle Bollinger Band at around 0.6491. If the bearish trend holds on and the lower support will break it could boost the downward trend. 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.