The euro weakened to a 16-month low versus the dollar and dropped for the first time in three days against the yen amid speculation France’s credit rating may be downgraded and Europe’s sovereign debt crisis will worsen. The shared currency declined against 14 of its 16 most- traded peers even after French Finance Minister Francois Baroin denied having been notified by a ratings company that the nation’s top rating will be cut. The euro extended losses as leading members of the European Parliament objected to a planned German-led euro fiscal treaty.
Sterling was the worst performer against the dollar after data showed the U.K. trade deficit increased more than forecast. British retail-store inflation also slowed to the least in 16 months, fueling bets the Bank of England will need to add stimulus to aid the economy.
The pound dropped 1 percent to $1.5329 and fell 0.3 percent to 82.76 pence per euro.
The U.S. currency rose against most of its major peers as investors sought the safety of Treasuries. Yields on 10-year notes dropped to the lowest level in two days, 1.92 percent.
The Dollar Index (DXY), which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, gained as much as 0.7 percent to 81.493, approaching Jan. 9’s 81.503, the highest since September 2010.
EUR/USD $1.2500, $1.2825, $1.2850, $1.2875, $1.2920
USD/JPY Y76.00
AUD/USD $1.0400, $1.0175, $1.0150
GBP/USD $1.5620


EUR/USD
Offers $1.2800, $1.2750, $1.2720/25
Bids $1.2675/65, $1.2650, $1.2640, $1.2625/20, $1.2600, $1.2580
Resistance 3: Y77.60 (61,8 % FIBO Y78,20-Y76,60)
Resistance 2: Y77.35/40 (Jan 6 high, 50,0 % FIBO Y78,20-Y76,60)
Resistance 1: Y77.05 (session high)
Current price: Y76.93
Support 1:Y76.80 (support line from Jan 4)
Support 2:Y76.55 (lows of November and January)
Support 3:Y76.10 (Sep 22 low)

Resistance 3: Chf0.9780 (high of 2011)
Resistance 2: Chf0.9600 (area of Jan 9 high)
Resistance 1: Chf0.9560 (session high)
Current price: Chf0.9537
Support 1: Chf0.9520 (area of asian session high)
Support 2: Chf0.9480 (session low)
Support 3: Chf0.9465/50 (area of Dec 29, Jan 4 highs, МА (200) for Н1 and Jan 10 low)


Resistance 3: $ 1.2810/20 (38,2 % $1,3080-$ 1,2660, Jan 6 and 10 highs)
Resistance 2: $ 1.2790 (session high)
Resistance 1: $ 1.2730 (low of asian session)
Current price: $1.2705
Support 1 : $1.2700/690 (area of session low)
Support 2 : $1.2660 (Jan 9 low)
Support 3 : $1.2590 (low of Aug'2010)

EUR/USD $1.2500, $1.2825, $1.2850, $1.2875, $1.2920
USD/JPY Y76.00
AUD/USD $1.0400, $1.0175, $1.0150
GBP/USD $1.5620
- Jan 11 German Merkel & Italy Monti to meet in Berlin at 1200GMT
- Jan 11 EU report on 'Excessive Deficit' for Belgium, Cyprus, Malta, Poland and Hungary
- Jan 12 Italy PM Monti addresses lower house on economy, EU
- Jan 12 Spain sells new 2015, 3.25% 2016 & 4.25% 2016 Bono upto E5bln
- Jan 12 ECB Governing Council meeting, press conference with Draghi
- Jan 12 Italy sells new 12-month-/3-month T-bills for up to E12.0bln
- Jan 13 Greek T-bill redemption for E2.0bln
- Jan 13 Italy sells medium-long bonds
- Jan 16 Italy T-bill redemption for E7.7bln
- Jan 17 Spain to sell 12-/18-month T-bills
The euro dropped versus the dollar before a report that may signal Europe’s sovereign-debt crisis is hurting the region’s prospects for economic growth.
The 17-nation currency slid against most of its major peers before Spain and Italy sell securities this week amid concern the nations will struggle to meet funding needs. Industrial production in the euro region is forecast to have shrunk for a third month in November, according to a Bloomberg News survey of economists before the European Union’s statistics office in Luxembourg releases the data tomorrow. The median estimate is for a 0.3 percent contraction.
The European Central Bank will keep its key interest rate at 1 percent at a policy meeting tomorrow, the median estimate in a separate Bloomberg poll showed. That would follow quarter- point rate reductions at each of the bank’s last two meetings.
Gains in the dollar were limited before a report tomorrow forecast to show inflation is slowing in China, spurring speculation the Asian nation’s central bank will have more scope to support growth in the world’s second-biggest economy.
China’s consumer prices probably rose 4 percent in December from a year earlier, according to median estimate of economists surveyed by Bloomberg News before the statistics bureau releases its figures tomorrow. That would be the lowest inflation rate since September 2010.
The world’s second-largest economy is experiencing a slowdown in trade, with import growth falling to a two-year low in December, according to a Chinese government report published yesterday. The data also showed a deceleration in export growth.
EUR/USD: on Asian session the pair fell.
GBP/USD: on Asian session the pair dropped.
USD/JPY: on Asian session the pair gain.
European events for Wednesday start at 0700GMT with German GDP for 2011, while UK data at 0930GMT sees trade data as well as BoE quoted rates data. US data starts at 1200GMT with the weekly MBA Mortgage Applications Index. At 1340GMT, Chicago Fed President Charles Evans speaks to the Rotary Club of Lake Forest and Lake Bluff, while at 1400GMT, Atlanta Fed President Dennis Lockhart
delivers a speech on the economic outlook to the Georgia Center for Nonprofits in Atlanta. European events continue at 1500GMT, when the Eurozone Insee, IFO, ISAE institutes give their Q1 economic outlook.
Yesterday the dollar declined as US stocks advanced, damping demand for safer investments.
The euro’s gains were tempered before Spain and Italy sell debt this week amid concern the nations will struggle to meet funding needs. Spain will auction as much as 5 billion euros of bonds due in 2015 and 2016 on Jan. 12, and Italy will sell 12 billion euros of bills the same day.
The dollar and yen weakened against higher-yielding currencies before Germany’s chancellor meets with the International Monetary Fund’s managing director amid signs European leaders are taking steps to end the debt crisis.
EUR/USD: yesterday the pair has slightly grown.
GBP/USD: yesterday the pair has slightly grown.
USD/JPY: yesterday the pair traded in range Y76.77-Y76.90.
European events for Wednesday start at 0700GMT with German GDP for 2011, while UK data at 0930GMT sees trade data as well as BoE quoted rates data. US data starts at 1200GMT with the weekly MBA Mortgage Applications Index. At 1340GMT, Chicago Fed President Charles Evans speaks to the Rotary Club of Lake Forest and Lake Bluff, while at 1400GMT, Atlanta Fed President Dennis Lockhart
delivers a speech on the economic outlook to the Georgia Center for Nonprofits in Atlanta. European events continue at 1500GMT, when the Eurozone Insee, IFO, ISAE institutes give their Q1 economic outlook.
Resistance 3: Y77.60 (61.8% FIBO Y78.20-Y76.60)
Resistance 2: Y77.35/40 (Jan 6 high, 50.0% FIBO Y78.20-Y76.60)
Resistance 1: Y77.00 (Jan 9 high)
The current price: Y76.91
Support 1:Y76.75 (Jan 9 low)
Support 2:Y76.55 (Nov 18 low)
Support 3:Y76.10 (Sep 22 low)
Resistance 3: Chf0.9650 (Feb 9 high)
Resistance 2: Chf0.9595 (Jan 9 high)
Resistance 1: Chf0.9540 (high of the American session on Jan 9)
The current price: Chf0.9514
Support 1: Chf0.9465 (Jan 10 low)
Support 2: Chf0.9415 (61.8% FIBO Chf0.9595-Chf0.9305)
Support 3: Chf0.9395 (Dec 29 low)
Resistance 3: $1.2920 (61.8% FIBO $1.2665-$1.3075)
Resistance 2: $1.2870 (50.0% FIBO $1.2665-$1.3075, MA (233) H1)
Resistance 1: $1.2815 (Jan 6-10 high)
The current price: $1.2737
Support 1 : $1.2720 (low of the American session on Jan 9)
Support 2 : $1.2665 (Jan 9 low)
Support 3 : $1.2625 (Aug 31 low)
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,2776 +0,10%
GBP/USD $1,5482 +0,17%
USD/CHF Chf0,9490 -0,04%
USD/JPY Y76,84 +0,01%
EUR/JPY Y98,19 +0,12%
GBP/JPY Y118,96 +0,19%
AUD/USD $1,0312 +0,72%
NZD/USD $0,7942 +0,91%
USD/CAD C$1,0154 -0,78%
Change % Change Last
Oil $102.20 +0.90 +0.89%
Gold $1,632.00 +24.00 +1.49%
Change % Change Last
Nikkei 8,422 +31.91 +0.38%
Hang Seng 19,004 +138.56 +0.73%
Shanghai Composite 2,286 +59.85 +2.69%
FTSE 5,697 +84.44 +1.50%CAC 3,211 +83.10 +2.66%
DAX 6,163 +145.75 +2.42%
Dow 12,460.13 +67.44 +0.54%
Nasdaq 2,702.50 +25.94 +0.97%
S&P 500 1,292.08 +11.38 +0.89%
05:00 Japan Leading Economic Index November 92.0 92.9
05:00 Japan Coincident Index November 91.4 90.3
09:30 United Kingdom Trade in goods November -7.6 -8.2
13:40 U.S. FOMC Member Charles Evans Speaks 0
14:00 U.S. FOMC Member Dennis Lockhart Speaks 0
15:30 U.S. EIA Crude Oil Stocks change 06.01.2012 +2.2
17:30 U.S. FOMC Member Charles Plosser Speaks 0
19:00 U.S. Fed's Beige Book January
23:50 Japan Current Account Total, bln November 562.4 246.8
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