| Action Insight Daily Report |
Yen and Dollar Soar on China Tightening Concern, German Ifo and UK GDP Eyed Yen and dollar are sharply higher today as Asian stocks tumble broadly on concern of more tightening from China to guard against inflation and asset bubbles. There are talks in the market that PBoC will ask several domestic banks to raise their reserve ratio. Industrial & Commercial Bank of China is believed to have ordered its branches to stop issuing new loans for the rest of January while China Citic Bank has suspended new lending in Shanghai. Also, Bank of China's earlier than expected announcement of its fund-raising plans is viewed as a confirmation to view of regulator's determination to slow loan growth. There were also concern that US President Obama will have a three-year freeze on domestic spending in his 2011 budget that would save $250 billion by 2020. Full Report Here... |
| Special Report |
FOMC Preview: Current Conditions Warrant Low Interest Rates The Fed is expected to keep the policy rate unchanged at 0-0.25% at the January meeting. While there have signs showing improvement in economic outlook, job markets remained the area the Fed concerned the most. The number of payrolls unexpectedly plunged -85K in December, compared with consensus of no change from November, while the unemployment rate stayed at 10%. The Fed will wait until unemployment rate has dropped substantially before considering rate hikes. Full Report Here... |
| Candlesticks & Ichimoku Analysis |
Trade Idea: EUR/USD - Sell At 1.4130 Euro's retreat from yesterday's high of 1.4195 and the breach of indicated support at 1.4085/90 confirm recovery from 1.4029 has ended there and recent decline from 1.5145 top should resume for weakness to 1.4015 (50% Fibonacci retracement of 1.2885 to 1.5145) and possibly towards 1.3950 but reckon 1.3900 would hold due to loss of downward momentum. Full Report Here... Trade Idea: USD/JPY - Sell At 91.00, O.C.O. Buy At 88.85 Although dollar has fallen again on renewed cross-buying in yen due to risk aversion after the rumors of Chinese banks to raise reserve requirements and decline from 93.78 may extend weakness to 88.83, loss of near term downward momentum would prevent sharp fall below there and reckon support at 88.32 (also below 100% projection of 93.78 to 90.31 measuring from 91.88 at 88.41) would hold, bring a strong rebound later. Full Report Here... |
| Featured Technical Report | Market Highlights |
EUR/GBP Daily Outlook Daily Pivots: (S1) 0.8677; (P) 0.8735; (R1) 0.8769; More. EUR/GBP's sharp fall and break of 0.8720 minor support indicates that recovery from 0.8650 is completed at 0.8792 after hitting 4 hours 55 EMA, and below 0.8855 support turned resistance as expected. Intraday bias is flipped back to the downside and break of 0.8650 will confirm that whole decline from 0.9410 has resumed and should target 100% projection of 0.9410 to 0.8833 from 0.9153 at 0.8576 next. Read more... All Technical Outlook Reports | Daily Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | AUDJPY | 80.37 | 81.60 | -123 | -1.53% | | NZDJPY | 63.48 | 64.42 | -94 | -1.48% | | EURJPY | 126.29 | 127.73 | -144 | -1.14% | | CHFJPY | 85.85 | 86.81 | -96 | -1.12% | | CADJPY | 84.45 | 85.32 | -87 | -1.03% | Last Updated: Jan 26, 07:00 GMT Currency Heat Map Daily View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | Last Updated: Jan 26, 07:00 GMT |
| Economic Indicators Update |
| GMT | Ccy | Events | Actual | Consensus | Previous | Revised | | 23:50 | JPY | Corporate Service Price Y/Y Dec | 1.50% | -1.40% | -2.00% | -2.20% | | 3:30 | JPY | BoJ Interest Rate Decision | 0.10% | 0.10% | 0.10% | | | 7:00 | EUR | German Import Price Index M/M Dec | | 0.00% | 0.40% | | | 7:00 | CHF | UBS Consumption Indicator Dec | | -- | 1.276 | | | 9:00 | EUR | German IFO - Expectations Jan | | 99.1 | 99.1 | | | 9:00 | EUR | German IFO - Business Climate Jan | | 95.1 | 94.7 | | | 9:00 | EUR | German IFO - Current Assessment Jan | | 91.3 | 90.5 | | | 9:00 | EUR | Eurozone Current Account (EUR) Nov | | -3.1B | -4.6B | | | 9:30 | GBP | GDP Q/Q Q4 A | | 0.40% | -0.20% | | | 9:30 | GBP | GDP Y/Y Q4 A | | -3.00% | -5.10% | | | 9:30 | GBP | Index of Services 3M/3M Nov | | 0.40% | -0.20% | | | 14:00 | USD | S&P/Case-Shiller Composite-20 Y/Y Nov | | -5.00% | -7.28% | | | 15:00 | USD | Consumer Confidence Jan | | 53.5 | 52.9 | | | 15:00 | USD | House Price Index M/M Nov | | 0.50% | 0.60% | | |
| Suggested Readings |
Fundamental Highlights Technical Highlights |
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