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The EUR could raise 0.9% against the GBP and traded at 0.9033

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 11/12/09


Good morning from Hamburg and welcome. The GBP weakened against all of its major counterparts and the U.K. published negative economic data. Also the USD fell against most of its major counterparts. Furthermore we analyze the CHF.

Market review

The GBP dropped 1.2% against the USD and reached 1.6552 after the Governor from the Bank of England, Mervyn King, said that a weaker level of the GBP against the USD should support the U.K. for a recovery from the financial crisis. At the beginning of 2009, the GBP rose over 13% against the USD after falling 26% in 2008. Furthermore the GBP fell versus all of its 16 major counterparts. The EUR could raise 0.9% against the GBP and traded at 0.9033. The U.K. gross domestic product fell 0.4% in the third quarter. Also the trade deficit continued its trend and widened to an eight month high in September.

The USD approached to a two week low against the EUR and reached 1.5008. The USD drooped also versus the most of its 16 major counterparts as Asian stocks extended a global rally. The JPY rose to 89.81 against the USD and the AUD climbed to 0.9370 versus the USD. This was the highest level since August 2008.


Since the middle of October, the GBP has been trading in a bullish trend against the CHF. Currently, the currency pair touches its bottom line of the Bollinger Bands. When it touched the bottom line, the prices recovered three times before. Furthermore it reached its support at 1.6680. Many times before, the prices could recover at this level too. Also the RSI may indicate a continuing bullish trend for the GBP.


Since the end of October, the CAD has been trading in a sideways trend versus the CHF. During that time, when the currency pair touched its resistance at 0.9660, the prices always rebounded. Now, the CAD reaches its resistance, but it remains to be seen if the resistance is strong enough again. Also a crossing MACD through the signal line from the top may indicate a rebounding trend.

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