Forex Daily Analysis – December 22nd 2008

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Most of the financial markets will be closed on Thursday, on Christmas day. The thin markets may colatile trade. From Wednesday, 19:00 GMT till Friday 8:00 GMT, the markets will be closed.

The European currency became stronger last week, and later weakened. In the wake of the of the new week, the Euro gained some ground.

This comes especially due to the severe state of the Americna and British economies, and not due to some miracle in Europe. It hasn’t strengthened against other currencies.

Today’s only major event is the GDP figure from New Zealand. The Kiwi economy is expected to retract by 0.5%. Recession is everywhere.

In Japan, Bank of Japan Governor Masaaki Shirakawa said this morning that the bank will focus on putting money into the market. Stressing a Quantiative Easing policy weighed on the Yen, which opened the week lower, with the USD/JPY touching the 90 mark agian. He admitted that the BOJ exhausted the monetary tool of interest rates.

Tomorrow will be more interesting.

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About Author

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 a 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.

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