EU Morning Report - Currency Wars 2.0

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By NikolasX | January 17, 2013 8:28 PM EST

Easy Forex

The euro (EUR) remains at a range versus the US dollar (USD) around 1.325 as finance leaders continued rhetoric of upcoming currency wars. The view was first expressed by Jean-Claude Junker, President of the Euro Group, as he stated that the euro was trading “dangerously high”. Investors believe this was a sign that the Eurozone members may turn to currency management to promote growth along with monetary and fiscal policy. At the same time Japan’s new Prime Minister Abe has been promoting the yen into lower territory to increase its competitiveness.

§ The US500 (SPI) has been trading around the range of 1456 and 1468. Should more positive company earnings be released in the US, then we could see a move above its resistance.

§ WTI Crude (OIL) is moving higher in its pennant formation currently at 93.99. Should it move above the 95 level then oil may surge higher, as the world economy recovers.

§ The Australian dollar (AUD) has substantially dropped against the US dollar (USD) in yesterday’s session amid weaker fundamentals. We expect a correction to take place within the next few days.

Stay in tune throughout the day with foreign exchange bullets!

 

. Pivot Preference1 Sentiment2
. EURUSD 1.3335 SHORT @ 1.3335 34% of deals buy EUR
. USDJPY 88.85 SHORT @ 88.85
46% of deals buy USD
. GBPUSD 1.6065 SHORT @ 1.6065 51% of deals buy GBP
. AUDUSD 1.0540 SHORT @ 1.0540 32% of deals buy AUD
. GOLD 1672 LONG @ 1672 60% of deals buy GOLD
. OIL 93.10 LONG @ 93.10
20% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
.
Currency Time (GMT) Event Forecast
. USD 13:30 Unemployment Claims
369 K
. USD 15:00 Philadelphia Manufacturing Index
7.1
. NZD 21:45 Consumer Price index q/q
0.1%
Movers Shakers
USDNOK
The US dollar (USD) strengthened against the Norwegian Krone (NOK), the world’s strongest currency. The AAA rated Norwegian economy has attracted a lot of demand supported by its stable oil resources. In an attempt to boost the country’s competitiveness in other areas, the Norwegian government has hinted at weakening the currency, which is currently surging against the dollar at 5.56.
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