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Euro Maintains Gain Against Dollar, But EUR/CHF Spirals LowerEuro is maintaining yesterday's bond auction triggered gain against dollar so far today. But, the strength of rebound is so far limited. Greece is entering the final stage in the discussion with private sector creditors on debt write-down as Prime Minister Papademos said that there will be the "public formal offer" by beginning of February. However, it's remain doubtful if the deal could be finalized that quickly given it's also reported that key areas remain unresolved. And there were talks that if a deal could not be reached 100%, Greek could use the collective-action clause to force a minority of holdout creditors to take losses, or lower the interest rate on bailout loans for Greece to buy back its bonds held by ECB at discounted prices.Full Report Here... |    |
| Featured Technical Report | |
GBP/JPY Daily OutlookDaily Pivots: (S1) 117.42; (P) 117.42; (R1) 117.42; MoreIntraday bias in GBP/JPY remains on the downside for the moment. Current fall is expected to extend to 116.83 key support next. On the upside, break of 119.10 resistance is needed to confirm short term bottoming. Otherwise, outlook will remain bearish even in case of recovery. Read more... |
| Special Report |
Both ECB and BOE Stayed on the SidelineAt two consecutive months of rate reduction, the ECB decided to leave the main refinancing rate at 1% at the January meeting. Policymakers would like gauge the impacts of previous rate cuts and liquidity provisions on the economy. Meanwhile, President Draghi indicated the 3-year LTRO has benefited banks and supported confidence. This is by no means an end of the easing cycle. Indeed, the ECB will like lower interest rates further should economic conditions deteriorate.Read more... 2012 Forecast: Sterling Has Potential to Weaken Against EuroSimilar to the euro, the British pound will likely weaken against the US dollar amid risk aversion in the first half of the year. Against the euro, the pound had gained for 3 consecutive years since 2009 although the magnitude has been declining. In 2011, EURGBP has been on a down trend since the EU summit as pessimism that EU finance leaders would not be able to derive effective measures to resolve the sovereign debt crisis has made sterling a safe-haven asset in the short-term. We do not expect this to continue this year as the UK has its own fiscal and economic problems to struggle. The disaster these might cause is not less than the debt problems in the17-nation region. An option to alleviate the economic problems would be monetary easing. Without the need of majority vote, the BOE may deliver more dovish stance on the monetary outlook than the ECB in 2012. This would then weaken the British pound.Read more... |
| Economic Indicators Update |  Don’t miss the largest investor and trader gathering in the World—The World MoneyShow Orlando, February 9-12, 2012 at the Gaylord Palms Resort. Be there as recommendations and advice are revealed for how to best position your portfolio for profit—in 2012 and beyond. Register Free Today!   | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2012 Elliott Wave Forecast | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
European Session: Orders and Options WatchEUR: The single currency continued to move higher after yesterday's rally in part due to strong results of Spanish and Italian bond auctions and stops above 1.2820 were triggered and sizeable offers and stops in the region of 1.2850-70 were also cleared, more offers are tipped at 1.2900-10 with next stops seen above 1.2950-60 and further out at 1.3000. On the downside, bids are lined up at 1.2810-20 with some stops building up below 1.2780-90 with more buying interest likely to emerge around 1.2740-50 and sizeable stops are placed below 1.2700.Read more... | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forex Trade Ideas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Idea: GBP/USD – Sell at 1.5475Although current euro-led rebound signals a temporary low has been formed at 1.5279 yesterday and consolidation with mild upside bias remains for retracement to the Ichimoku cloud top (now at 1.5404), upside should be limited to resistance at 1.5490-00, bring another decline later. A break of the Kijun-Sen (now at 1.5336) would suggest top is possibly formed but break of 1.5310-15 is needed to signal the rebound from 1.5279 has endedRead more... Trade Idea: EUR/USD – Sell at 1.2940Although the single currency has risen again this morning in Asia and near term upside risk remains for the rise from this week’s low of 1.2662 to extend gain to previous support at 1.2898, loss of near term upward momentum should limit upside to 1.2915-20 (61.8% Fibonacci retracement of 1.3077-1.2662) and reckon 1.2940-50 would attract renewed selling interest, bring another decline later.Read more... Candlesticks Intraday Trade Ideas Update Schedule (GMT): 1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530 Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF Elliott Wave Daily Trade Ideas Update Schedule (GMT): AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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2012 Outlook
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