According to US Commerce Department figures, the world’s largest economy expanded at a 2.8% annual pace in the fourth quarter of 2011 – and the fastest pace in a little over 1 1/2 years. The anticipated figure was lower than what most had expected, with forecasts averaging about a 3% gain for the quarter. Unfortunately, the slight pickup was unable to support any upside in.
It seems as though the worst isn’t over for the European Union. Although speculation has increased that both European leaders and global creditors are working towards a credible agreement on Greek debt matters, there is concern that a future and similar scenario is in the works for Portugal. The sentiment is keeping the euro below 1.3150, falling in New York trading to 1.3111. The.
At the beginning of the week, we were expecting the upside move to continue till 1.3150-1.3220 range above 1.3080. After FOMC Meeting, it happened just like we have expected. Now, 1.3175 and 1.3220 are very critical resistance levels. A downside move may start from 1.3180′s till at least 1.2850. We will see if that level holds for long term forecast. 1.2625-1.3175. 550 pips of upside.
USDJPY 77.49 -0.36% Profit taking has spurred on the yen buying today against the US dollar – taking the currency pair lower on a failure to break through technical resistance at 78.25. Although the USDJPY has bounced back to just below the 77.50 level, the pair is susceptible to further downside – until support levels at 77.25. At that level, technical buying should kick.
The last 24 hours have proven to be a boon for risk takers as speculation has shifted from dollar positive to dollar negative. The sentiment has boosted non-dollar asset prices and created notable gains in both the Australian dollar and gold prices. In a scheduled decision yesterday, the Federal Open Market Committee elected to keep rates at the current 0.25% mark, while extending the commitment.
The Eurozone’s single currency remained higher on the day, in light of opening remarks by German Chancellor Angela Merkel at the World Economic Forum in Davos, Switzerland. Addressing the crowd – and officially opening the global conference – Merkel failed to back earlier comments made by German policymakers and hint at a potential end to the already 3-year running financial.
Major currencies are buoyed in the market today following yesterday’s positive Fed comments. Market support has helped the Australian dollar, notably, rise to 1.0668 – the highest level in almost 3 months. Other US economic data has helped demand for other currencies besides the dollar, with the Euro recovering as well to 1.3150. All in all, with little other economic data.
Fed Chairman Ben Bernanke surprised market speculators earlier today, extending the period in which central bankers are keeping rates at record lows. In a scheduled decision earlier this afternoon, the US central bank elected to keep interest rates at their current 0.25% standing. But, policymakers added comments that hinted at further monetary policy stimulus in the near term. The.
AUDJPY 81.95 +0.61% The Australian dollar major currency has benefited from near term interest rate news – translating into higher valuations against most of the other major currencies as well as the US dollar. This hasn’t been more exemplary than through the AUDJPY currency pair. But, the near term party may be over as the pair approaches a key test of resistance at 82.15..
