Powered By

Breaking News

Euro, Pound rally on light volume, Yen struggles

Publish Date27/12/2012 11:16:14 AM

Last Update27/12/2012 12:38:13 PM

Amid thin volume holiday trading, the U.S. dollar traded lower against its major counterparts, in anticipation for meetings between Obama and Congress, in attempt to grasp a last-minute deal on fiscal cliff.

During last weekend, Obama has downplayed the chances of a major agreement that would result in a solid near term solution for the “cliff”, as he asked policy makers for compromise and a kick-the-can-down-the-road deal to avoid the deadline.

Meanwhile, Treasury Secretary Timothy Geithner notified Congress that the U.S. is going to hit the debt ceiling on New Year`s Eve, in a written letter on Wednesday.

We may see this “temporarily solution” to avoid the cliff, however that would not be positive for markets over the short term.

The euro is trading noticeably higher against greenback, recorded an intraday high at 1.3275; the pair should find resistance near the previous highs starting at 1.3295 and 1.3307, while intraday support levels at 1.3250 and 1.3215.

The British pound rallied as well, printing an intraday high at 1.6195 and currently pushing higher. The pair could find resistance at 1.6205 and 1.6235 today, while key support level to watch at 1.6170-1.6165.

The Japanese yen remains under strong pressure across the board, the USDJPY is trading at multi-month highs, and above the major long term resistance 85.50.

Holding above this resistance over weekly closing basis signals further weakness and a major trend change, over the near term, 84.00-84.20 should form a floor for price action for this rally to remain sustainable.

The economic calendar is relatively light today, however Key events on the macroeconomic front are U.S. jobless claims, consumer confidence and new home sales, we expect the number to result in sharp volatility amid low volume levels. 

Comments

Member Account Required
You must be registered as a member of the forums and logged into your account to post messages. If you do not have a member account, please Sign In or Register.
Markets
United States
Europe
Asia Pacific
Calendars
Economic Calendar
Holiday Calendar
ECB Calendar
Feds Calendar
BoE Calendar
Boj Calendar
News
Top News
FX Updates
Market News
Stocks
Commodities
Global Highlights
Political News
Around the World
Analysis
Opinions
Studies
At A Glance & Video Commentaries
Market Pulse
Community
Forum
Chat
Blogs
Press Releases
icn.com
About Us
Advertising
Contact Us
Privacy Policy
Terms of Services

Risk Disclaimer : All information on this page is subject to change. The use of this website constitutes acceptance of our Privacy Policy and Terms of Service. Please read our Privacy Policy, Risk Disclaimer, Terms of Services and all legal disclaimers. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.


Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.


©2012 ICN.COM. ALL RIGHTS RESERVED