Daily Forex Analysis by Finexo.com 15/01/2010


After falling broadly against most of its major pairs yesterday, the Dollar is still low this morning. The Retail Sales Announcement returned disappointing news and caused the US Dollar to fall to a two month low against the Australian Dollar and a three month low against the Canadian Dollar. The poor economic news can guarantee that the Fed would now not raise the U.S. interest rates in the near future.

The first major bank US earnings release is at 1200 GMT and the bulk of financial firms will come next week. As was with the overall expectations for Q4 earnings, financials are expected to show strong results. Positive earnings could keep the negative correlation with the dollar and risk-seeking intact for now, but corporate repatriation of better earnings could offset the downward trend and give the dollar a needed uplift

Yesterday’s Lows & High
EUR/USD – 110 pips (1.4445-1.4555); AUD/USD – 114 pips (0.9215-0.9329);
USD/CAD – 98 pips (1.0222-1.0320); GBP/USD – 98 pips (1.6248-1.6346).


The Euro fell against the U.S. Dollar in recent trading, following comments by the European Central Bank Chief highlighting the importance of the U.S. Dollar, though, any Dollar gains are probably going to be small because of the Retail Sales Announcement yesterday (Mentioned above).
Low inflation and uneven economic growth throughout the E.U. have prevented interest rates from moving away from their record lows and with the European interest rates remaining at 1.00% is a main cause in the Euro’s decline

The hope for today is that a bad American Core CPI Report at 13:30GMT, should give a Euro boost later in the day, along with the European CPI Report at 10:00 GMT could cause an earlier Euro rise.

Yesterday’s Lows & High
EUR/GBP – 70 pips (0.8865-0.8935); EUR/AUD – 219 pips (1.5535-1.5754);
EUR/NZD – 190 pips (1.9464-1.9654); EUR/CAD – 162 pips (1.4829-1.4991).

Written by Finexo.com