“Hero of the Day” on Tuesday was undoubtedly the British pound

"Hero of the Day" on Tuesday was undoubtedly the British pound. Even with the advent of the Japanese market participants pair Pound /dollar jumped to 50 points up and consolidated above the level of 1.6400, while the remaining competitors USD traded fairly quietly.

However, the figure of 1.6400 pound hike up is not over: the opening of trading platforms in Europe and release unexpectedly favorable data on the UK, where growth rates of consumer and retail prices were higher than economists had expected, the pair GBP /USD rose to a maximum 1.6456 days. Euro, however, in this direction for the pound did not follow: because the pound bought not only for dollars, but also for other currency pair EUR /USD dragged a cross EUR /GBP, journeyed down and struck his support 0.8750, below which it is not been since September.

release the next batch of data, this time on the euro-zone economy (published indexes of the German Research Institute Zew), once again surprised the market participants. The actual value index was worse than expected, so investors" interest shifted to significantly strengthened the U.S. dollar. Thus, the price of the euro has fallen almost a figure, reaching the level of 1.4300. The British pound was not kept on the achieved altitude and fell to below 1.6350. In addition, the dollar began to give in the 91 yen and 1.0350 francs more.

At these levels, the major currency pairs and greeted the beginning of active trading in the United States, during which the USD has become even more expensive, reaching 1.0354 against the franc and 91.25 against the yen, at the same time gave 1.4251 per euro and pound declined to 1.6310 . Interest in the U.S. ensured the rise of stock indexes up more than annual heights, as well as release unexpectedly positive figures on the volume of purchases of U.S. securities by foreign investors.

By closing trading in the United States and, accordingly, the end of the trading day on the Forex market the dollar, as it often does, still rolled away from goal levels, but still completed the day the winner (about 1.4300 in the pair with the euro, vyshe1 .0300 franc and 91 yen), having failed thus only strengthen against the pound - a pair GBP /USD closed above 1.6350.

Forecast for Wednesday, January 19, 2010

So, hike up the euro and the pound still has not happened, so the assumptions of analysts FOREX CLUB, made on the eve of the fact that the two currencies can be dropped to a minimum last Friday, to some extent justified. With regard to possible developments on Tuesday you will notice that the dollar will likely try to build on its successes.

Turning to the daily chart, you can see that in December the euro /dollar was kept from falling below the level of 1.4200, which allows to provide this level as a pair of goals on Wednesday. The dollar /franc still entered the channel 1.0250-1.0350, so the best that cane64be hoped dollar against currencies of Switzerland - an attempt to assault 1.0400. For USD /JPY is possible to allocate channel 91-92 yen per dollar.

Pound is likely to hold off on passing the position of the dollar: unexpectedly favorable inflation data published on Tuesday, could stir up hopes of market participants, assigned to the British currency, the more that will be published Wednesday in the figures for employment in the UK as well as the protocol of the last meeting of the Bank of England, which dealt with the future direction of monetary policy.

Also for all currency pairs value may be publication of data on inflation, producer price indices and the U.S. housing sector. Expectations of economists in regard to the statistics are not particularly bright, but releases to draw attention to the costs.

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