Fundamental analysis for February 08, 2013
The euro which fell on Thursday amid the President of the European Central Bank, Mario Draghi’s speech during the ECB press conference, managed to walk from the start of trading on Friday, after reaching its lowest at 1.3370 yesterday. However, the formation of bearish trend continuation is clearly seen in the 4H chart. It seems that a further decline of the single currency for the next few hours is anticipated.
The EUR/JPY pair, which further extended its upward movement, when the euro against the dollar had yielded, also has a bearish outlook in the short term. It is because the yen recovered quickly positions in these hours, after which during the Asian session the Minister of Finance of Japan, Taro Aso, said the pace of its recent slide has been too rapid. This explains the fact the strong bearish crossing USD/JPY found its main support in 91.75, 38.2% rally from 88.04/94.04.
Meanwhile, the British pound takes uptrend in the short term, after breaking 1.5770 bearish line. The British currency is increasing and already exceeded 1.58 in these minutes, in a move that is not correlated to the other European currencies.
China’s trade balance, known early in the Asian session, increased investors’ confidence. We mentioned on Thursday that The Chinese economy depends much on the Western world, so a good trade balance of the Asian giant will give a new breath to the other countries, especially, emerging ones, which are the main suppliers of raw materials.
In this case, the main beneficiary was the Australian dollar after reaching 1.0255 at its lowest, at the monetary policy meeting of the RBA, recovered quickly to set an upward trend that now begins to confirm. Its goal for the rest of the day is at 1.0375 /80 area.
The news agenda includes Unemployment rate in Canada in January and the trade balance, which could in turn move the loonie to parity zone against the dollar. In the United States it is also expected the trade balance last month, and these reports to follow during the American session.
The material has been provided by Instaforex Company – http://www.instaforex.com/