XForex Daily Finance Briefing December 9th 2008
Posted by forextradinganalysis on December 9, 2008
The Dollar And The Yen Weaker Off Of Gains In Equities
The dollar and the Japanese yen weakened during yesterday’s trading against most of the majors due to rises in equities markets in the US. Markets were boosted after President Elect Barack Obama announced that he is intending to invest more in large scale infrastructure projects in the US. His words gave investors fresh reason for optimism and boosted risk appetite in the financial markets. The demand for safe haven currencies reduced off of the back of this.
The AUD and the CAD enjoyed support from rises in crude oil and commodities prices which strengthened yesterday following Obama’s announcement. The Bank of Canada is expected to announce a cut in interest rates of 0.5% to the level of 1.75%. The announcement is due at 2pm GMT.
The recession in European economies is continuing to deepen. In the Eurozone investor confidence dropped in September to a new low at the level of -42.6. In Germany, industrial production has also continued to decline falling by 2.1% in October. PPI in the UK, meanwhile, dropped by 0.7% in November the fourth consecutive cut.
The EUR-USD strengthened yesterday after comments from one of the members of the ECB board were viewed by the market as implying that a hold in interest rate cuts in January is a possibility. The pair traded yesterday around the level of $1.2970 and continued to trade in the range between $1.24-1.30.
Today’s news announcements include the UK trade balance at 9.30am GMT and pending homes sales from the US at 3pm GMT.
EUR
1.3080 1.3060 1.3000 1.2940 RES
1.2650 1.2680 1.2730 1.2790 SUP
JPY
94.70 94.40 93.90 93.50 RES
90.90 91.20 91.60 92.00 SUP
CHF
1.2310 1.2290 1.2230 1.2170 RES
1.1900 1.1940 1.1990 1.2030 SUP
GBP
1.5050 1.5010 1.4950 1.4890 RES
1.4620 1.4670 1.4700 1.4750 SUP
