Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Dec 09 08 10:37 GMT |

Good morning from wonderful Hamburg. We started the new Week with a huge rally on the stock markets around the World. In Germany the most important DAX Index rose 7.63 % and let us hopes that the worst time could be behind us. Now we have to find out how the FX markets responds. However, we wish you a prosperous trading. Markets review On Monday the USD fell against a basket of major currencies due to reaction of the largest U.S. public spending plan since 1951 which president-elect Barack Obama fancy. GBP rose against the USD to 1.4948 and the EUR/USD to 1.2955 in late New York trading. Overnight the EUR/USD fell on its low to 1.2857 on speculation the German economic sentiment data report could be dropped near a record low. For this reason as well the EUR/JPY fell on its low to 119.11 from 120.26 yesterday. The economic difficulties in Japan increase more and more. The final revision of Japan's thirdquarter Gross Domestic Product showed the annualized growth rate fell 1.8 % in the three months through September. That is twice worst than originally estimated by the government. The AUD/USD opened 2.14 % higher at 0.6673. During the day the currency pair dispenses its gains and trades currently at 0.6555 while Australia's second largest lender, Westpac Banking Corp, announced an A$2.5 bln share sale. New Zealand will cut the income tax to stimulate its domestic economy. Today the NDZ/USD trades in a range between 0.5465 and 0.5395. Technical analysis EUR/CHF Since October 27th the EUR/CHF traded upward and breaks yesterday the resistance at 1.5559. But the Momentum Indicator shows that the upward trend slow down and maybe the EUR/CHF could dispense gains. If the currency pair claims over its new support line at 1.5559 it could boost the bullish trend GBP/JPY The GBP/JPY has been trading in a bearish trend since September and breaks its support at 137.21 on December 5th. Yesterday we saw a small recovery during higher volume and the market closed above the support line. If the GBP/JPY can extend the gains, it could break the bearish 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.