Daily Forex Analysis by Finexo.com 18/12/2009


The Euro fell to largest one-day slide it has seen since early July against the Dollar, and was battered just the same versus other majors on Thursday. The fall happened on recent worries about public finances in Greece, which had its credit rating cut by two ratings agencies in just over a week. Late on Wednesday, Standard & Poor’s cut Greece’s rating by one notch to BBB-plus from A-minus, this comes one week after Fitch cut the rating to a negative, causing the Euro to decline, it has done so each day since.

At 10:00 PM GMT, the Euro was trading down 1.1% to the Japanese Yen to 129.02, down 1.23% against the US Dollar to 1.4352, down .17% to the British Pound Sterling to .888, down .41% versus the Canadian Dollar to 1.536 and down .5% against the Swiss Franc to 1.5018.

AUD In Brief…..

The Euro did pull of a gain, although it was more a result of bad news on the other end that anything bright in Europe. The Australian Dollar was down .25% to the Euro to hold at 1.6172. The Aussie is still affected by the second quarter GDP revisions and poor third quarter growth numbers as well. The Aussie also fell the Greenback, by 1.53% to .8868.


The US unemployment market showed that more Americans filed for unemployment benefits than previously expected with 480,000 new claimants. The estimate was 465,000, which was lower than last weeks 473,000. The news hurt the Dollar after it came out as during the holiday season, typically companies hire temporary workers which causes the unemployment numbers to drop. The Dollar rose mostly across the board, however the numbers were less than they were prior to the data, and at the time of this report, the trend was lower.

At 10:15PM GMT, the US Dollar was up .2% to the Japanese Yen to 89.95, up 1% against the British Pound to 1.6162, up .8% versus the Canadian Dollar to 1.0699 and up .8% against the Swiss Franc to 1.0464.

Chart: EUR/USD

A potential big target for this strong USD cycle is the 200-day moving average in the EUR/USD, now that we’ve broken through the only relevant local support of interest at 1.4480 (now the resistance). Beyond that, there’s not much of interest until 1.3750.


Written by Finexo.com