Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Dec 23 08 10:15 GMT |

Good morning from beautiful and cold Hamburg. Today the FOREX market is trading pretty quite, due to the Christmas holidays ahead. However we wish you a nice Christmas Eve and a successful trading day. Our next Daily Fx Report will be sent out on the 29th of December. Markets review The USD stays stabile against the JPY after recovering from a 13-years low of 87.13 last week. There are still concerns over the Japanese economy following more gloomy data and a deteriorating economic outlook expressed by the BoJ. Due to the global slump and a surging JPY, Japan registered an export deficit for the longest period in almost 30 years in November. Shirakawa added that Japan's economic conditions are likely to become more severe even after the BOJ reduced interest rates close to zero last week. The USD/JPY trades nearly flat at 90.30 after a 1.18% increase from yesterday. Trading is absolutely quite with limited players in the market ahead of the Christmas holiday later this week, traders said. The EUR/JPY rose 0.4% to 126.37. In a thin market condition some institutional investors bought the EUR and supported the EUR/Cross currency pairs. The EUR/USD is currently trading at 1.4004, up 0.4% on the day. Data on Monday showed Belgian business confidence fell in December to a record low, which hurt sentiment for the EUR. But the market shifts focus now to the US data on November and existing home sales. The NZD/USD is trading near unchanged at 0.5735; little moved by data showing on Monday the New Zealand economy slipped deeper into recession in the third quarter, which is reinforcing expectations for further sharp cuts in interest rates by the RBNZ Technical analysis GBP/AUD Since the beginning of October, the GBP/AUD has been trading along a downward trend line with a support level at 2.2. As you can see the market has made an almost clear break through the support line, which could be a sign for further bearish movements EUR/AUD Since October, the EUR/AUD has been moving in a sideways trend inside a few of support and resistance levels. After touching the 2.083 resistance line for the third time, the pair recovered again and it seems to be on the way towards the support levels at 1.95, 1.90 and 1.85 now. 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.