Forex Daily Analysis – December 18th 2008



The US dollar continues to plunge against all the currencies. Even the pund that lagged behind made a move forward. GBP/USD now above 1.56.

The EUR/USD crossed another resistance line at 1.44, and aimed to breach the 1.45 line. Curretly it retracted back a little bit.

Today’s imprtant data is Germany’s IFO Business Climate Survey, Eurpean trade balance, Retail Sales in th UK, and the weekly figure of the US Unemployment claims. Also in the US, the Philly Fed Manufacturing Index will be watched by traders.

The BOJ continues to be worried about the strength of the Japanese Yen. The USD/JPY is currently trading between 87 to 88. Tonight at 00:00 GMT, the Bank of Japan is going to make a decision about the interest rates. Although they aren’t expected to change the rate, the statement that will be given might have very significant implications on the JPY. An intervention to weaken the Yen is widely expected.

In Canada, a handfull of economic data will also be published today. The most important figure is the Core Retail Sales (m/m) which is expected to drop by 0.9%. Other Canadian data: Foreign Securities Purchases, Retail Sales (m/m) and the Canada’s Leading Index. The USD/CAD should shake today.

Further away, in New Zealnd, the National Bank of NZ December business outlook remained gloomy, at -35. But since all the world is in recession, this bad figure in New Zealand had little impact on traders. The global crisis is everywhere…




About

Yohay Elam – Founder, Writer and Editor

I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.

Read previous post:
Dollar plunges even lower

The US dollar plunges further down today, hitting a new low with the Japanese Yen. USD/JPY...

Close