Our team of forex experts analyse the currency markets and offer their insights on which market-moving events are likely to impact the performance of some of the most popularly traded forex pairs in the UK, including GBP/USD, EUR/USD and USD/JPY.
5th January 2011 – 8:00am
Range: 1.3258 – 1.3325
Yesterday the euro fell against the dollar and pound but rallied against the Swiss franc. German unemployment rose for the first time since June 2009 whilst the initial Eurozone CPI reading hit an October 2008 high. EUR/USD has spent the last few trading hours in a relatively tight range between 1.3260 and 1.3300. The reasoning behind the euro’s fall from the 1.3400 area yesterday lies with strong US economic data combined with ‘expected’ Fed minutes.
Range: 1.5540 – 1.5611
Tuesday saw the pound soar on better than expected manufacturing ISM data (16-year high), and despite some bearish corrective rallies, and testing highs of 1.5645, the pair managed to hold onto most of its gains into Tuesday evening. The pair is struggling to overcome the resistance at 1.5645 (Nov 4th high), whilst it’s supported by the December 30th low at 1.5365. The next piece of economic data out of the UK is not until tomorrow (PMI Dec).
Range: 0.9470 – 0.9519
After being the best performing currency at the end of 2010, CHF finally gave up its push north yesterday. The rally was certainly getting exhausted for the CHF. After a few weeks of incessant gains, traders have opted to take a breather (perhaps booking some profits). USD/CHF found support at 0.9300, and has since rallied up nearly 200 pips. The CHF crosses (GBP/CHF and EUR/CHF) also saw severe upside corrections, both hitting weekly highs during yesterday’s session.