Fundamental analysis for January 25, 2013
The euro along with the Swiss franc achieved a foothold against the dollar as The European Central Bank said banks will hand back a greater amount of 3-year loans than experts estimated, boosting short-term borrowing costs. The single currency was set for a seven consecutive week of gains against the yen after the ECB said 278 banks will repay 137.2 bln euros next week.
The U.S. currency remains very strong against the Australian dollar, Canadian dollar, the yen and the pound.
The outlook on the market these days is interesting. It is easy to see the difference in behavior between different currencies against the dollar, according to their own principles.
Amid the euro grows rapidly, in spite of the shrugging off the dire unemployment data from Spain and led by the financial world by weak economies, the sterling collapses with little strength to recover by now. True, the German IFO figures were also above expectations.
Britain’s economy shrunk more than forecast in Q4 with GDP below zero. The pound dropped as much as 0.3% against the dollar before recovering and it was trading up 0.1% at $ 1.5804. It fell against the euro to the lowest in more than a year and was down 0.5% at 85.14 pence per euro.
The yen falls again, with renewed strength. After a few days of doubt, the yen exceeded 91 units against the dollar, and is already sold in about 4 hours charts, making the crossing imminent correction.
The outlook for the U.S. session looks attractive. There is no reason to consider a change in direction of the euro, but we do not expect strong growth in the pound, but a movement to accompany the single currency. As for the coins "commodities", do not have much to gain in the coming hours.
The day’s news agenda includes retail inflation rate in Canada, at 8:30 Eastern. Also, the number of new home sales in the United States, at 10:00, information identified as key to the economy, at a time when the real estate market, at least in what refers to existing homes, showing signs of a solid recovery.
The material has been provided by Instaforex Company – http://www.instaforex.com/