Banking Stocks Slammed In US

Daily Forex Fundamentals | Written by Easy Forex | Jan 21 09 01:25 GMT |

U.S. Dollar Trading (USD) Accelerated recent gains as Key levels on multiple majors were breached. US banking sector fell 20% as European banking concerns overflowed onto the US. Barack Obama became the 44th President of the USA but this failed to help the markets bounce with the Dow Jones slipping below 8000. Feb Contract Crude Oil closed up $2.23 ending the New York session at $38.74 per barrel. In US share markets, the Dow Jones dropped -332 points or -4.01% and the NASDAQ dropped -88 points or -5.79%. Looking ahead, January NAHB Housing Market Index expected at 9 in January. The Euro (EUR) came under pressure as the key 1.3000 level gave way in Asia and the heavy stocks saw the pair dip in 1.28's. EUR/JPY dropped hard falling to 115 as risk aversion surged higher. EUR/GBP jumped higher as the Pound continued to plummet. January German ZEW Survey showed a bounce to -31 vs. -43.5% expected as recent rate cuts improved the business outlook. Overall the EUR/USD traded with a low of 1.3847 and a high of 1.3100 before closing the day at 1.2860. Looking ahead, Germna PPI is expected to drop -1.2% in December. ECB President Trichet also speaks today. The Japanese Yen (JPY) was the biggest gainer surpassing the USD as the major recipient of safe haven flows. Heavy GBP/JPY and EUR/JPY selling forced the USD/JPY back through the key 90 level although further weakness did not eventuate. Japanese Consumer Confidence hit 26.2 in December. Overall the USDJPY traded with a low of 89.70 and a high of 90.96 before closing the day around 89.85 in the New York session. The Sterling (GBP) near capitulated coming under heavy selling pressure all day as the market continued to factor in a deteriorating UK banking sector. The 1.4000 level broke and the market traded down to 1.3810 in late US trading. December CPI lost -0.4% vs. -0.8% forecast. GBP/JPY hit all time lows under 125 Yen. Overall the GDP/USD traded with a low of 1.3810 and a high of 1.4426 before closing the day at 1.3890 in the New York session. Looking ahead, December Claimant Count is forecast at 85k vs. 75.7k. The November ILO Unemployment rate is forecast 6.1%. The Australian Dollar (AUD) succumbed to USD strength although held up better than others as Oil and Gold showed some buoyancy. AUD/JPY selling was heavy as the Dow Jones slipped below 8000 but the AUD/USD found support at 0.6500. Overall the AUD/USD traded with a low of 0.6677 and a high of 0.6459 before closing the US session at 0.6510. Gold (XAU) jumped higher as banking risk saw investors flood into the alternate investment, overwhelming USD strength. Overall trading with a low of USD$824.6 and high of USD$865.95 before ending the New York session at USD$855 an ounce. Easy Forex http://www.easy-forex.com Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products