The USD traded at 1.6226 against the GBP
Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 12/09/09
Today, we will report about the GBP and the EUR while Greece`s debt rating was downgraded. This brings other European nation banks in the focus. Furthermore we had interesting data from Japan. However, we wish you good luck in trading and a nice Wednesday.
The EUR traded near a five week low against the USD on speculation that the credit ratings of European nations could be cut after Greece`s debt rating was downgraded by Fitch Ratings. The USD reached 1.4668 versus the EUR. For the EUR was it the weakest level since the beginning of November. Also the GBP lost against the USD to its weakest level in almost two month on concern that Dubai`s state controlled companies will sell U.K. assets to pay for loan obligations. The USD traded at 1.6226 against the GBP. Furthermore the GBP lost against the JPY and reached 143.80. The GBP dropped versus 15 of its 16 major counterparts.
In Japan rose the gross domestic product about 1.3% in the third quarter. The economists estimated an increase about 2.8%. That generates speculation that the Bank of Japan will expand its credit easing measures further to support the fragile economic recovery. Yesterday, the Prime Minister of Japan Yukio Hatoyama announced a 7.2 trillion JPY stimulus package and last week, the Bank of Japan decided a 10 trillion JPY credit program to revive the economy.
Since the beginning of December, the USD recovered from its bearish trend and has been trading in an upward movement against the CHF. Currently, the currency pair touches its upper Bollinger Band. During the last month when the USD reached the upper Bolls, the prices rebounded under its middle Bollinger Band. Furthermore the RSI may indicate a decreasing trend and a downward price correction.
With the beginning of December, the USD has been trading in a bullish trend channel versus the CAD. Recently, the currency pair reached the upper line of the trend channel and the prices rebounded like the two times before, but it remains to be seen if the currency pair will fall to the bottom line again. Also it seems that the MACD could break the signal line from the top in the next days.
