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The USD gained against the GBP to its high at 1.5641

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 02/18/10


Good morning from Hamburg. Today could become an exiting trading day due to the release of a lot of economic data from the U.S. as well as the Euro-Zone and the UK. Anyways, we wish you a wonderful, nice and successful trading day.

Market review

The USD climbed versus 14 of its 16 major counterparts before reports today, may show that an index of U.S. leading indicators increased for a 10th month and manufacturing in the Philadelphia area expanded. The U.S. currency was supported after minutes of the Fed’s January 26th-27th meeting showed that some officials pushed to start selling assets in the “near future” to reduce the central bank’s balance sheet. The USD gained for a second day versus the EUR and the GBP. The USD reached a high at 1.3558 versus the EUR, which is close to its record low from February 12th at 1.3532. The USD gained against the GBP to its high at 1.5641, back from its yesterdays low at 1.5816.

The EUR fell versus the JPY on concern that funding pressures could bring European banks to borrow more money. The ECB’s data showed that lending facility of the central bank extended 3.49 billion € on February 16th, 3.83 billion € on February 15th, 3.88 billion € on February 12th and 4.10 billion € on February 11th. The EUR/JPY fell to a low of 123.33 after opening at 124.17 while the EUR/CAD has reached a low at 1.4207, which is the lowest level since the end of 2007.


Since the middle of January, the GBP/CHF has been moving along the Fibonacci projection levels. After falling to the 38.2% level, the market has started a bullish phase inside a trend channel. At the moment, the market trades below the 76.4% level around 1.6926. If the market doesn’t break out of the channel, it might get boosted towards the resistance level around 1.7000.


As you can see, the weekly pivot points seem to be a significant indicator for the price movement in the EUR/PLN pair. The market pulled back during the last two weeks after it touched one of the pivot support levels. Currently, the pair is trading around the first pivot support line around 3.9700. If the market doesn’t cross the support, it may pull up towards the middle pivot level around 4.0443.

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