XForex Daily Finance Briefing December 11th 2008
Posted by forextradinganalysis on December 11, 2008
Mixed Fortunes For The Dollar
The dollar traded yesterday under a mixed trend against the Japanese yen. it strengthened modestly thanks to strong support at the level of ¥92 which the pair failed to break. Against the euro and the other European currencies the dollar traded under a weakened trend following rising risk appetite and after the gold price rose above the level of $800 per ounce.
The wholesale inventories in the US continued to drop into November by 1.12%, the largest drop since 200. The reduction in wholesale inventories was caused by a slowdown in consumption that has led to a reduction in demand.
Crude oil traded under the influence of the release of crude oil inventories in the US which showed a reduction below forecasts. During the day’s trading prices reached a high of $46 per barrel, after the announcement prices fell back before returning to a level around $45 per barrel.
The GBP-USD is under pressure from the global economic recession, and the recession in the UK in particular. The pair recorded gains yesterday and it seems that it is likely to test the resistance area at $1.50. If the pair succeeds in breaking this threshold it is likely to achieve a break out with a short term rally in the pair to over $1.55 likely. Significant support for the pair exists at the level of $1.45.
Today’s news announcements include the US trade balance and the jobless claim at 1.30pm GMT.
EUR
1.3280 1.3260 1.3220 1.3170 RES
1.2800 1.2830 1.2870 1.2920 SUP
JPY
94.20 93.90 93.50 92.90 RES
90.60 90.90 91.30 91.80 SUP
CHF
1.2110 1.2080 1.2050 1.2000 RES
1.1750 1.1770 1.1810 1.1870 SUP
GBP
1.5150 1.5110 1.5060 1.5000 RES
1.4690 1.4730 1.4780 1.4860 SUP
