Here’s a quick update on technicals, fundamentals and what’s going on in the markets.

In the interview below, David Song of DailyFx discusses the euro, the hopes for the US in averting recession, the weight on the pound and other current fundamental questions.

But there’s one currency and one event to which this phenomenon will not likely apply. In the interview below, David Rodriguez analyzes current fundamental topics in forex trading.

This change in communication is exactly what Bernanke related to as using “better communication” in order to support the recovery. The market is looking for actions, not words. Regarding a third quantitative easing program, there are no hints.

In my post about scenarios for the Fed decision, the scenario about the dollar sliding down had the highest probability. Indeed, this scenario was realized, as the Fed announced fresh dollar printing – and the result is as expected. While the headline was as expected and the result as well, the details are interesting:

British Nationwide HPI rose by 0.7%, significantly higher than the early expectations for a 0.2%. This important house prices index showed that the dip in house prices last month was only temporary. A rise in house prices means that the economy is doing well, and prices continue to rise – this is necessary for a future rate hike. Three additional factors pushed the Pound higher:

According to the second release of British GDP (Gross Domestic Product), the economy grew by 0.3% in the fourth quarter of 2009. This is an upwards revision from the initial release that showed only 0.1% growth.

Early in the day, British GfK Consumer Confidence isn’t expected to move from the negative score of -17. This will stop months of slow improvement.  Nationwide HPI is an important housing sector figure. It’s predicted to rise by 0.4%, much less than the previous months.

Ben Bernanke stole the show with a surprising hike of the discount bank rate. This came after the close of the American stock markets but forex trading continues all the time – the dollar leaped. Some currencies took a bigger hit than others. This event will continue to dominate trading on Monday when there aren’t any major releases. Later there are more issues…OK, let’s start the review:

European GDP figures were very disappointing. Germany’s economy didn’t grow in Q4. This followed weak growth in Q3. According to the initial release, the German economy stalled. This fell short of early expectations for 0.2% growth. There’s a chance that in the final release this figure will be revised to the downside. Fears for a new recession in Europe’s largest country and the economic driver are very bad for the Euro.