Downside Gaining Momentum As Concerns Return

Daily Forex Fundamentals | Written by Easy Forex | Jan 13 09 01:47 GMT |

U.S. Dollar Trading (USD) made continued gains as safe haven demand for the USD reemerged. Equities were weak on recession concerns which spilled over to commodities. US earning begin this week and most are expecting weak results. In U.S. share markets, the NASDAQ was down 32 points (-2.09%) and the Dow Jones was down 125 points (-1.46%). Crude Oil closed down -$3.24 ending the New York session at $37.59 per barrel. Looking ahead, Fed Chairman Bernanke Speaks and the November Trade Balance is forecast at -51.3 Bn vs. -57.2 Bn previously. The Euro (EUR) continued to come under pressure as the market focuses on Thursday’s Rate Decision with 0.5% the consensus but some looking for a 0.75% cut. Also weighing on the Euro was concern over Ireland and Greece Sovereign debt been put on rating watch by S&P. Overall the EUR/USD traded with a low of 1.3291 and a high of 1.3445 before closing the day at 1.3365. The Japanese Yen (JPY) soared as US stocks continued to weaken and the USD/JPY broke through 90 dragging down all the crosses. Trading was quiet in Asia as Japan was away on a bank holiday. Overall the USDJPY traded with a low of 88.90 and a high of 90.25 before closing the day around 89.40 in the New York session. UPDATE November Current Account released down -65.9%. The Sterling (GBP) continued to come under pressure as GBP/JPY selling forced the cable below 1.5000. Stops were hit under the pivot level and selling accelerated down to 1.48 supports. EUR/GBP jumped higher above 90. Overall the GDP/USD traded with a low of 1.4804 and a high of 1.5113 before closing the day at 1.4820 in the New York session. Looking ahead, November Trade Balance forecast at -7.5 Bn vs. -7.75Bn previously. The Australian Dollar (AUD) cracked 0.700 in early trade and never got back above the key level falling sharply with commodities and stocks. AUD/JPY fell over 4% on the day as the markets risk aversion notched higher. Noted strong support at .6770 will prove crucial going forward. Overall the AUD/USD traded with a low of 0.6780 and a high of 0.7010 before closing the US session at 0.6810. Gold (XAU) moved lower falling sharply over 3% as oil dropped 5% and the USD strengthened. Overall trading with a low of USD$815 and high of USD$854 before ending the New York session at USD$820 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