index

USD/JPY 15/12

Tue, 15 Dec 2009 11:33:47 +0100

Japanese Yen (JPY)

The Yen gained versus the Dollar and other majors after Tanken Manufacturing Index came out stronger than expected. The Yen is set to replace the Dollar in the Carry Trading as borrowing costs in Japan became almost as cheap as U.S loans. Overall, USD/JPY traded with a low of 88.32 and a high of 89.29 and EUR/JPY traded with a low of 129.18 and a high of 130.64. Today, Tertiary Industry Activity is expected with 0.5% versus -0.5% prior.

Resistance	89.00	89.25	89.85
Support	88.35	88.00	87.40

EUR/USD 15/12

Tue, 15 Dec 2009 11:32:51 +0100

USD Dollar (USD)

The Dollar weakened slightly versus the majors as the Dollar rally took a relief. NASDAQ and Dow Jones gained by 0.99% and 0.28% respectively as Dubai\'s bailout calmed investor fears. Crude weakened for the 9th straight day lowering by -0.43% closing at 69.57$ a barrel. Gold (XAU) gained by 0.54% closing at 1123.30$ an ounce. Today, PPI is expected with 0.8% versus 0.3% prior. Industrial Production is expected with 0.6% versus 0.1% prior. TIC Long Term Purchases is expected with 38.3B versus 40.7B prior.

EURO (EUR)

The Euro gained slightly versus the Dollar as Dubai World\'s bailout eased banks concerns of major write downs. Industrial Production came out as expected with -0.6%. Overall, EUR/USD traded with a low of 1.4607 and with a high of 1.4685. Today, German ZEW Economic Sentiment is expected weaker with 50.1 versus 51.1 prior.

Resistance	1.4685	1.4775	1.4825
Support	1.4585	1.4535	1.4470

WORLD FOREX NEWS 14/12

Mon, 14 Dec 2009 15:53:30 +0100

The euro rose against the dollar on Monday after Dubai's announcement it had received help from Abu Dhabi to repay its debts warmed risk appetite.

The dollar weakened broadly on news that Abu Dhabi would bail out its debt-laden neighbour with $10 billion in aid, which initially triggered selling in the yen as it eased worries about a possible debt default by Dubai.

Analysts said the euro benefited from the bailout announcement, but said further significant gains may be capped as traders were unlikely to put on big positions as market liquidity decreases in the run-up to the year-end holidays.

"The Abu Dhabi news helped risk sentiment, boosting the euro. The yen suffered from a squeeze (in long yen positions)," said Kasper Kirkegaard, currency strategist at Danske Markets in Copenhagen.

"But we should be careful, the markets are thinning out so we could see some volatile moves."

By 0855 GMT, the euro EUR= had risen 0.2 percent to $1.4656, having climbed to around $1.4685 after Dubai said it had received $10 billion from Abu Dhabi to help it repay $4.1 billion in an Islamic bond maturing on Monday. [ID:nGEE5AO2FN]

Late last week, the euro hit a two-month low of $1.4586 on the EBS trading platform on the back of strong U.S. retail sales and consumer sentiment figures.

The single European currency was also helped by a 0.8 percent rise in European shares .FTEU3.

Euro/dollar gains helped to push the dollar index down 0.2 percent to 76.391, pulling it away from a near six-week high of 76.726 hit late last week.

The euro initially rose against the yen, rallying close to the day's high around 130.60 yen, before reversing those gains. It was last at 129.64, down nearly half a percent on the day.

FED IN FOCUS

Dollar losses were widespread, with the U.S. currency sliding JPY= 0.4 percent to 88.73 yen. The dollar was unable to sustain a jump to around 89 yen after Dubai's announcement, with traders citing Japanese exporters selling the greenback after its rise.

Last month, news that government-controlled holding company Dubai World might default rattled financial markets and led to a sell-off in the euro and riskier assets including the high-yielding Australian dollar.

Markets awaited figures on euro zone employment and industrial production due at 1000 GMT, although analysts said the data was unlikely to have a significant impact.

Traders looked ahead to a two-day Federal Reserve policy meeting, which begins on Tuesday.

The U.S. central bank is likely to keep rates unchanged near zero, but the focus will be on the accompanying statement and whether the Fed reiterates a dovish bias and does not fully acknowledge the recent run of strong data.

The surprisingly strong reading of U.S. consumer data on Friday, coming on the heels of a lower-than-expected fall in non-farm payrolls earlier this month, had boosted the dollar,

Such signs of a recovery in the U.S. economy have raised some speculation in the market that the Fed may wind down loose monetary policy sooner than markets had been expecting.

JPY 14/12

Mon, 14 Dec 2009 15:48:50 +0100

Japanese Yen (JPY)

The Yen weakened versus the Dollar and the Euro as economic conditions improve and a future rate increase in the U.S seems more likely. Overall, USD/JPY traded with a low of 88.26 and a high of 89.81 and EUR/JPY traded with a low of 129.97 and a high of 131.59. No economic data expected today.

Resistance	89.30	89.85	90.10
Support	88.25	88.00	87.75

EUR/USD 14/12

Mon, 14 Dec 2009 15:48:01 +0100

USD Dollar (USD)

The Dollar continued rallying versus most majors on Friday after Retail Sales and Michigan\'s Consumer Sentiment came out stronger than expected signaling economy is recovering improving Fed Rate Outlook. NASDAQ ended almost flat with -0.03% change and Dow Jones gained by 0.63%. Crude weakened by -1.39% dropping below 70$ for the first time since October closing at 69.87$ a barrel and Gold (XAU) dropped by -0.91% closing at 1114.55$ an ounce on a stronger Dollar. No economic data expected today.

EURO (EUR)

The Euro continued falling versus the Dollar reaching a 2 month low below the 1.46 support level as better economic data in the US led investors to expect a near rate increase. Ireland and Greece are facing major debt concerns that may lead to their exit from the Euro-Zone. Overall, EUR/USD traded with a low of 1.4586 and with a high of 1.4776. Today, Industrial Production is expected with -0.6% versus 0.3% prior

Resistance	1.4700	1.4775	1.4825
Support	1.4585	1.4535	1.4470

USD/JPY 10/12

Thu, 10 Dec 2009 12:46:00 +0100

Japanese Yen (JPY)

The Yen continued to strengthen versus the Dollar after Japanese stocks fell the most in 8 days. Core Machinery Orders came out as expected with -4.5%. Overall USD/JPY traded with a low of 87.36 and with a high of 88.7. No economic data expected today.

Resistance	88.5	89.2	90.1
Support	87.35	87	86.6

EUR/USD 10/12

Thu, 10 Dec 2009 12:45:11 +0100

USD Dollar (USD)

The Dollar was mixed versus the majors after Inventories at U.S. wholesalers rose in October for the first time in more than a year, signaling companies are picking up the pace of orders as the economy shows signs of improvement. NASDAQ and Dow Jones strengthened by 0.5% respectively. Crude Oil fell by 2.7% after the report showed that Crude inventories fell by 3.8 million barrels and Crude price closed at 70.64$ a barrel after oil inventories showed a rise. Gold(XAU) fell by 2% closing at 1120.4$ an ounce. Today, Trade Balance is expected at -36.9B vs. -36.5B prior. Unemployment Claims is expected to rise from 457K to 463K. Federal Budget Balance is expected at -136B vs. -176.4B prior.

EURO (EUR)

The Euro gained slightly versus the Dollar after U.S. stocks rose modestly, reviving demand for higher-yielding assets. Overall, EUR/USD traded with a low of 1.4668 and with a high of 1.4782. Today, ECB Monthly Bulletin will be released and ECB President Trichet will speak at the University of Cambridge.

Resistance	1.4782	1.49	1.5090
Support	1.4675	1.46

EUR/USD 09/12

Wed, 09 Dec 2009 13:34:08 +0100

USD Dollar (USD)

The Dollar continued gaining versus most majors as investors turned to the Safe Haven of the Dollar as the global economy keeps struggling to end the recession. President Obama called for more federal spending to fight the unemployment. IBD/TIPP Economic Optimism was out weaker with 46.8 versus 49.5 expected. NASDAQ and Dow Jones dropped by -0.76% and -1.00% respectively as the Dollar strengthened. Crude weakened by -1.23% closing at 73.02$ a barrel and Gold (XAU) fell by -2.87% closing at 1130$ an ounce on a stronger Dollar. Today, Wholesale Inventories are expected with -0.6% versus -0.9% prior.

EURO (EUR)

The Euro continued falling versus the Dollar, breaking below the 1.48 support level. German Industrial Production came out weaker with -1.8% versus 1.1% expected and sent equity markets to declines. Overall, EUR/USD traded with a low of 1.4680 and with a high of 1.4867. French Non-Farm Payrolls will be released at night and are expected to remain with 0% change. ECB Monthly Report will also be released at night giving outlooks for various economic issues.

Resistance	1.4735	1.4896	1.5090
Support	1.4668

WORLD FOREX NEWS 08/12

Tue, 08 Dec 2009 09:50:37 +0100

On Monday, Standard & Poor's said it may downgrade its rating on Greece's national debt amid mounting concerns about the governments ability to bring public finances under control.

The report weighed somewhat on the 16-nation euro, which bought $1.4803 Tuesday compared with $1.4823 late Monday in New York.

The British pound also fell to $1.6332 compared with $1.6439, while the dollar slipped to 88.94 Japanese yen from 89.48 yen late Monday in New York.

In the U.S., meanwhile, Federal Reserve Chairman Ben Bernanke said the U.S. economy will continue to struggle for some time.

Bernanke said in a speech Monday he thought the U.S. economy still faced "formidable headwinds" restrained by a weak labor market and tight credit, quashing hopes that the central bank would raise interest rates sooner than later.

Higher interest rates can support a currency as investors move funds to where they earn the best returns.

USD/JPY 08/12

Tue, 08 Dec 2009 09:46:58 +0100

Japanese Yen (JPY)

The Yen gained versus the Dollar as slight declines in world markets along with the Dollar rally lowered risk appetite. Japanese Current Account came out weaker with 1.38T versus 1.6T expected. M2 Money Stock came out weaker with 3.3% versus 3.5% expected. Overall, USD/JPY traded with a low of 89.04 and a high of 90.42 and EUR/JPY traded with a low of 132.36 and a high of 134.36. Today, Final GDP is expected with 0.8% versus 1.2% prior.

Resistance	89.75	90.10	90.75
Support	89.00	88.50	88.00