Each day, Finotec analysts write a detailed report on the latest developments in the currency markets. Our Forex Daily Analysis will provide you with signals and general expectations concerning majors and other pairs, supported by meticulous and clear technical and fundamental analysis.

In our Forex Daily Analysis page, you will also find: the daily share of short/long transactions for three majors as well as a list of economic indicators to be published today.
Below is a search box for past articles on forex pairs. Type in the pair or any word that you may think is relevant to see our analyst’s previous reports on the subject.

ECB may delay its stimulus exit amid concerns on Greece’s deficit

The EUR/USD is currently trading at $1.3706 as of 6:43am, GMT, with a bullish trend

Tammy Wally
09 February 2010

Add to bookmark: Add to: del.icio.us Add to: digg.com Add to: technorati.com Add to: Google Bookmarks Add to: Facebook
Read Recent Forex Daily Analysis Reports: Subscribe to RSS

EUR/USDUSD/JPYGBP/USDUSD/CHF

Resistance
1.3851(M)
1.3843(M)
1.3747(M)
91.09(M)
90.93(M)
89.89(M)
1.5775(M)
1.5730(M)
1.5672(M)
1.0800(S)
1.0772(M)
1.0741(M)

Support
1.3685(M)
1.3585(M)
1.3535(M)
88.90(M)
88.55(S)
88.25(M)
1.5580(M)
1.5535(M)
1.5515(M)
1.0647(M)
1.0619(M)
1.0521(M)

The (ECB) European Central Bank may be forced to cancel the withdrawal of emergency lending measures for the time-being because it could inflame financial market concerns about Greece, Spain and Portugal various economist have stated. Investors are dumping Greece, Spanish and Portuguese assets as their governments struggle to rein in their budget deficits, making it more expensive for them to finance the debt. Should the ECB go ahead with its exit strategy by pulling its unlimited cash support for euro area, interest rates could rise and further undermine confidence in Europe’s economic recovery. Greece’s budget woes threaten to overshadow a summit of European Union leaders that compelled ECB President Jean Claude Trichet to shorten his trip to a Reserve Bank of Australia symposium in Sydney by one day. The EU meeting was called to lay the groundwork for a 10-year economic program to strengthen the region’s competitiveness. The EUR/USD is currently trading at $1.3706 as of 6:43am, GMT, with a bullish trend.

The British pound continued its fall against the dollar on Monday as the UK currency bore the brunt of risk aversion selling triggered by jitters about the fiscal health of some euro zone countries. Investors are Worried about how euro zone states including Greece and Portugal will service their debts, including those denominated in sterling, which has been battered in recent weeks. A poll in the newspaper The Independent showing the opposition Conservative party's lead over the ruling Labour Party had fallen below 10 percentage points kept sterling on the back foot. This narrowing of the gap would increase the possibility of a hung parliament after the election that must be held by June, which would make it difficult for the new government to pass unpopular bills to strengthen the economy and repay debt. The GBP/USD is currently trading at $15640 as of 7:19am, GMT with a bullish trend.


The Dollar and the Yen both fell slightly on speculation European officials meeting this week will agree to assist Greece in tackling its deficit, reducing demand for the two currencies as a safe haven. The euro rallied from a near one-year low versus the JPY after a European Central Bank spokeswoman said President Jean Claude Trichet will leave a meeting in Sydney early to attend a European Union leaders’ summit. The yen fell for a third day against the greenback amid prospects Japanese companies sold the currency. “Investors may begin to think that a policy measure directed at Greece’s fiscal situation is potentially in the works,” said David Forrester, a currency economist at Barclays Capital in Singapore. The EUR/JPY is currently trading at 123.02 as of 7:43am, GMT, with a bullish trend.

Finotec Analysis Team
09 February 2010

The market review and analysis content on this site, including news, quotes, data and other information, is provided for your personal information only, and is not intended as a recommendation for trading purposes. Content on this site does not provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments or products. Finotec does not provide investment advice or recommendations to buy or sell securities.

Select Your Time Zone

Today's Economic Events





Time Event Currency/Country Period Previous Forecast Significance Actual
09-02-2010 23:50Machinery Orders (M-o-M)JapanMonthly-11.3 2
09-02-2010 23:50Machinery Orders (Y-o-Y)JapanYearly-20.5 3
09-02-2010 23:50Domestic CGPI (M-o-M)JapanMonthly0.1 2
09-02-2010 23:50Domestic CGPI (Y-o-Y)JapanYearly-3.9 3
09-02-2010 23:30Westpac Consumer ConfidenceAustralia5.6 2
09-02-2010 22:00ABC News Consumer Confidence IndexUnited States-49 4
09-02-2010 15:00Wholesale Sales (M-o-M)United StatesMonthly3.3 3
09-02-2010 15:00Inventories (M-o-M)United StatesMonthly1.5 2
09-02-2010 15:00IBD/TIPP Economic OptimismUnited States48.8 3
09-02-2010 15:00NIESR GDP EstimateUK0.3 3
09-02-2010 09:30Trade BalanceJPY/UK-2.9 2
09-02-2010 09:30Trade Balance - Non EUJPY/UK-3.03 3
09-02-2010 09:30Visible Trade BalanceJPY/UK-6.78 3
09-02-2010 09:30ImportsJPY/UK36.21 2
09-02-2010 09:30ExportsJPY/UK33.30 2
09-02-2010 07:00Exports€/Germany56.3 2
09-02-2010 07:00Imports€/Germany56.3 2
09-02-2010 07:00Trade Balance€/Germany17.4 2
09-02-2010 07:00CPI (M-o-M)GermanyMonthly-0.6-0.62-0.6
09-02-2010 07:00CPI (Y-o-Y)GermanyYearly0.90.820.8
09-02-2010 07:00CPI - EU Harmonised (M-o-M)GermanyMonthly-0.7-0.73-0.6
09-02-2010 07:00CPI - EU Harmonised (Y-o-Y)GermanyYearly0.70.720.8
09-02-2010 07:00Current Account Balance - BoP€/Germany18.1 2
09-02-2010 07:00Capital Account Balance - BoP€/Germany114 2
09-02-2010 07:00Financial Account Balance - BoP€/Germany-20.88 4
09-02-2010 00:30NAB Business ConditionsAustralia10 3
09-02-2010 00:30NAB Business ConfidenceAustralia8 3
09-02-2010 00:01BRC Retail Sales MonitorUK4.2 3
09-02-2010 00:01RICS House Price BalanceUK30 4

Survey

Will the Fed policy of cutting interest rates help the U.S. emerge from recession?

Yes

No

Read Recent Forex Daily Analysis Reports:

Sterling falls to a nine month low as the euro...

The GBP/USD is currently trading at $1.5570 as of 7:14am, GMT, with a bullish trend

Sterling & the euro fall as the BOE halts QE...

The GBP/USD is currently trading at $1.5760 as of 20:34pm, GMT, with a bullish trend

Sterling falls on weak Service PMI data but the BOE...

The GBP/USD is currently trading at $1.5900 as of 20:24pm, GMT, with a bullish trend

Trading in Foreign Exchange, CFDs, Options, Futures and Commodities and engaging in Spread Betting on financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment. You should only speculate with money that you can afford to lose. These products may not be suitable for all investors, therefore please ensure that you fully understand the risks involved and seek independent advice if necessary. Finotec Trading UK Ltd is authorized and regulated by the Financial Services Authority.

FSA Register Number [470392]


Please read our full Disclaimer and Risk Warning.

Finotec Trading UK, 68 Great Eastern Street, London, EC2A 3JT, United Kingdom

Copyright © 1998- 2010 Finotec Group Inc.SEC-OTCBB # All rights reserved.

 


Country  Area  Number 

I hereby also consent to the receipt of any and all promotional materials and advertisements delivered to me from Finotec, or any of its related and affiliated companies, via e-mail, SMS messages, facsimile and/or automated telecommunications systems.


 
Mediaplex_tag