Thursday December 2, 2010 - 13:51:43 GMT
Share This Story
Forex Hound - www.forexhound.com
ECB Leaves Rates Untouched; Focus on Solving Debt Crisis
The European Central Bank voted to leave interest rates
unchanged this morning as expected. Traders are now looking for ECB President
Trichet to at least announce the central bank will extend special liquidity
measures put in place at the height of the financial crisis. In addition,
Trichet is expected to signal that the central bank will boost its purchase of
troubled Euro-Zone sovereign bonds in an attempt to give the market a vote of
The Euro is getting a boost overnight. The follow-through
rally has produced a new swing bottom at 1.2968. Conditions have abated enough
in the Euro Zone to warrant some position paring and short-covering, but not
enough to change the trend to up. Look for a minimum 50% retracement to 1.3377.
Downtrending Gann angle resistance is at 1.3482.
The GBP USD remains under pressure. The short-term two-day
rally helped form a new main bottom at 1.5484.
This did not change the trend to up, but instead served to temporarily
relieve some of the short-term pressure.
The USD JPY remains is a strong uptrend. Following a two-day
setback, this market has rebounded and is now poised to breakout over the last
swing top at 84.40. Based on the current short-term set-up, 85.93 remains a
viable upside target.
Volatility is expected to remain high this week in the Forex
markets because of the fear of the unknown. To start the week, the market was
concerned about European debt contagion. By Wednesday, we were talking about
providing addition aid to the International Monetary Fund.
A two-day rally is not enough evidence to say that the trend
is getting ready to turn higher. The best rallies seem to come following the
formation of a solid support base. At this time the shorts continue to dominate
especially the risk-linked currency markets.
I donâ€™t believe that Trichet will say anything in his press
conference to hurt the Euro, but I also believe he will not be able to say
enough to put in the bottom and reverse the trend.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."