The GBP/USD fell for a second day to 1.6111 after opening at 1.6138

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 01/29/10

Good morning from Hamburg and welcome to our FX Report. Today, we would like to report about the Euro-Zone’s economy and the performance of the 16 nation currency. Anyway, we wish you successful trades and a nice weekend.

The EUR fell versus the USD, CHF, JPY and the GBP after speculation that Greece’s fiscal problems will proceed, which reduced demand for European assets. The EUR fell for a fourth day versus the USD before a report, which is expected to show that Euro-Zone’s unemployment rate climbed to an 11-year high. Greece’s government bonds are the world’s worst performers in January after losing 4.19 percent in local currency terms and extending their decline over the past three months to 10 percent. According to a survey, the European jobless rate has climbed to 10.1 percent in December, which would be the highest rate since June 1998. The EUR fell to 0.8644 versus the GBP (still close to its record low from yesterday at 0.86, which was the lowest point since August 2009), to 124.82 against the JPY (lowest level since the end of April 2009) and finally to 1.3913 versus the USD, which is its lowest price since more that six months.

The USD gained against the GBP after economists forecast that the U.S. nation’s economy expanded at a 4.7 percent pace from October though December, which is more than double the growth rate in the prior three months and the most since the first quarter of 2006. The GBP/USD fell for a second day to 1.6111 after opening at 1.6138.

Since January 4th, the AUD/CHF has been moving in a sideway trend above the 0.9350 support level. After touching the upper line of the Fibonacci fan from Christmas, the pair pulled down and is trading close over the lower line of the fan and the support level around 0.9350. If the market doesn’t break these levels, it may stay over the support level around 0.9350 and gain inside the fan.

After exit the bullish trend channel, which was established around July 2009, the NZD/USD has been trading along a horizontal support level around 0.7000. It is the fourth time that the market is touching the technical and physiological horizontal support. This time, the pair additionally has a bearish support level from October. If the market breaks both support levels, it may continue its bearish phase. Otherwise, it may return and continue the sideway trend.