EUR/USD hit 1.1833 early in Asia, down 0.05%. Germany is making contingency plans for the possible departure of Greece from the euro zone, including the impact of any run on a bank, German tabloid Bild reports today, saying government experts were concerned about a possible bank collapse if customers storm Greek institutions to secure euro deposits. Greece’s radical Syria party is on course to win a “clear mandate” to push through anti-austerity policies. Eurostat reported that the annual rate of euro zone inflation fell by 0.2% in December, down from 0.3% in November. Economists had expected an annual decline of 0.1%. It was the first fall in the annual rate of inflation since October 2009.
GBP/USD at 1.5064.The US dollar continued to gather momentum ahead of the FOMC minutes and US data due later in the session. Sterling dived to a 17-month trough against the dollar on Tuesday after data showed growth in Britain’s dominant services sector slowed last month to its weakest rate since May 2013.We expect that there will be a lot of buyers in that general vicinity, so if we get some type of work candle below, we would be buyers. On top of that, we have to deal with the Bank of England and its interest-rate decision.
AUD/USD hit 0.8116 during late Asian trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 0.8098, rising 0.26%. the Australian Bureau of Statistics said that building approvals increased by 7.5% in November, confounding expectations for a 3.5% decline. Building approvals rose by 11.5% in October, whose figure was revised from a previously estimated 11.4% gain. We have no interest in selling unless we close on a daily candle below the 0.80 handle, and are actually looking for supportive candles that we can buy.
USD/JPY was up 0.52% to 119.86 .Japan’s currency fell by the most in two weeks against the euro, snapping a three-day gain. A dollar gauge climbed to the highest since 2005 before the Federal Reserve releases minutes of its December meeting amid signs policy makers are moving toward raising interest rates. We believe that this market will more than likely go higher going forward, but with the nonfarm payroll numbers coming out tomorrow, it may be after that announcement. Because of this, we look at pullbacks as buying opportunities.
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FOREX Market Technical Analysis Outlook 8th JanPosted: January 8, 2015 in Forex