| FOREX News & ViewsBy: Derek Frey | |||||
| January 19, 2009 | |||||
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| General Market Comments:
Congradulations President Obama |
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| So this week we have the big event which is of course Obama’s inauguration. Monday and Tuesday of this week in the US are effectively holidays and as such we will see a pronounced fall in liquidity. However as of Wednesday it is off to the races with all thrusters. We expect to see the Dollar continue to put in a top and then turn back down in response to all the stimulus packages that will be pushed through with more freshly printed money. We continue to buy dips in the Majors. We want to wish Obama all the best and we truly hope he succeeds. The world desperately needs leadership and he could be the man to stand up for the right thing instead of just the profitable thing. | |||||
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Europe |
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| EUR/USD: This pair has seen a number of tests of support in recent weeks. So far all have held. We expect support near 1.31 to hold this week and are buyers near that level. We expect to see the Euro remain in a wide range for most if not all of the year. We are at the lower end of that range now and are therefore buyers. GBP/USD: The cable too is still holding its range. We could see a head fake to the downside this week but we are buyers of any weakness. This pair is also expected to be range bound for most of the year and we are also near the lower end of that range so here to we remain buyers of dips below 1.45. USD/CHF: This pair looks like an attractive sell on rallies north of 1.13 this week. We continue to say that this pair will fall to and through parity later this year. |
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| ASIA
Yen, Australian Dollar |
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| USD/JPY: This pair is stabilizing and consolidating itself near the 90 level. We feel that near term the lows we saw recently will hold and we are buyers of dips below 90 should they come this week. AUD/USD: This pair is also range bound and we continue to buy into retests of lows or other major dips. We expect this pair to strength more than many other majors later this year as commodities continue to recover in 2009. |
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| North America
Canadian |
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| USD/CAD: This pair is also stuck in a range but we feel this pair could break out of its range in the near term. We expect the breakout to be to the down side and are therefore sellers of rallies. We continue to expect Oil to hold support near 35.00. If support in oil is broken on a closing basis the Cad could then retest the 1.30 level. |
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| Questions or Comments? Call us toll free: 866.636.6378 or Email the author directly: [email protected] |
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