Daily FX Report

etraeDaily Forex Technicals | Written by Varengold Bank | Dec 16 08 09:25 GMT |

Good morning from the north of Germany. We still have a couple of days until Christmas and that means that a lot of people are trying to shop Christmas gifts in these days. We recognize all people which have already finished their errands Markets review In the early session the USD trades near a two-month low against the EUR. Speculations that the Federal Reserve will cut the target rate for overnight lending to a record low today, let the EUR increase 0.2 % to 1.3713. The USD/JPY also dropped down close to a 13 year low after the US Commerce Department reported that the housing starts will fall to the least since records began in 1959. Today the market awaits with excitement the Fed meeting because it may also provide details on whether it will buy government debt to push down Treasury yield and stimulate lending. Although the USD gained 6.3 % against the EUR this year and 30 % against the GBP, market players don't expect a recovery from recent losses because they can't see a sudden turnaround in the weak US economy. The USD weakened against most major currencies in the past weeks as policy makers overflowed the world with $8.5 trillion to bail out financial system and to animate the economy. The GBP rose from an all-time low at 0.9000 against the EUR as investors ranked its losses excessive. After the fifth loss day in a row, Sterling was able to finish the trading session positive. But today in the morning session the GBP decreased 0.2 % and is now trading at 0.8960 Technical analysis CAD/JPY In December the CAD/JPY has reached an all-time low at 70.60. But in the recent week the currency pair recovered and developed a clear upward trend channel. We notice a zigzag movement within the channel limits with explicit turning points. If the trend formation is strong enough, there might be an ongoing bullish trend GBP/CHF In November the GBP/CHF traded in a strong upward trend channel. However the pair crossed the formation and crashed to 1.7548. The chart development in December suggests a horizontal trading range with a resistance at 1.8162. There could be a chance of a trend continuation because the GBP has tested two times the support successful. 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.