Forex Daily Analysis – December 29th 2008
Daily Look

Forex Daily Analysis – December 29th 2008

Trading in this short holiday week began with a drop in the rate of the USD.

It weakened against almost all the currencies. EUR/USD jumped to 1.4339, USD/JPY is flirting again with the 90 mark, and also the USD/CHF dropped to 1.0433.

The gains that the Swiss Franc made came despite of the  KOF Economic Barometer that dropped 0.39, worse than expectations. The chocola is definitely a haven in troubled times of war.

The only currency that didn’t weaken against the dollar is the British pound. GBP/USD is currently at 1.4672. It didn’t really budge. The pound got bad news today from the  Housing Equity Withdrawal  which was -5.7B, a seriously low figure compared to -3.3B that was anticipated by Forex traders.

This puts the pound in extremely low rates against many currencies, especially the Euro. EUR/GBP is almost at parity, currently at 0.9772.

No more economic news is expected today. But there’s lot of news from the Middle East, from Gaza. Israel’s reserve army drafts and the ongoing hostilities in Gaza have sent oil prices up. WTI Crude oil now trades above $40, a jump of 5%.

The conflict in the middle east sparked a rise in oil prices, something that impacts most currency pairs.

Lots of economic data will be published tomorrow. Happy trading!

Yohay Elam

Yohay Elam

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.