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The USD weakened versus the JPY and fell to 89.68

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 02/12/10


Good morning from Hamburg and welcome to our last FX Report for this week. Today, we expect a lot of interesting economic data from the U.S. To the end of the week, the JPY gained versus all of its 16 major counterparts. Anyways, we wish you a relaxing weekend.

Market review

The EUR dropped for a third day versus the JPY and the USD before a report showed that growth in the currency’s 16-nation region slowed last quarter. For this reason, investors reduced their holdings in riskier assets. The EUR traded near its one week low against the USD on speculation that the European Union will fail to take sufficient measures to help Greece from its financial deficit. The USD rose to 1.3667 versus the EUR. The EUR declined to 122.57 against the JPY. Furthermore the JPY could gain versus all of its 16 most traded counterparts on prospects that Japanese investors are repatriating overseas earnings. The USD weakened versus the JPY and fell to 89.68.

In Europe, the German Chancellor Angela Merkel met Greece’s Prime Minister George Papandreou and European Central Bank President Jean Claude Trichet. They called for a closer monitoring of the Greek economy. The financial crisis from Greece is the reason for the weak EUR. The EUR fell about 4.6 % against the USD this year.


With the beginning of January 2010, the AUD has been trading in a downward trend against the USD. Since the beginning of the actual week, the currency pair could recover from its low in February. Currently, the AUD is touching its resistance around 0.8908. For two times in this month whenever the prices reached this level, the prices rebounded. Also the RSI may indicate a decreasing trend in the next few days.


As you can see, the USD is trading in a bullish trend versus the SEK since the middle of January. With the beginning of this week, the currency pair weakened and fell to its Pivot Point at 7.2449. Now it seems that the support could be strong enough to stop the downward movement. Furthermore a crossing MACD through the signal line may indicate a pull back for the AUD in the next days.

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