Daily Analysis

Daily Forex Analysis

JPY
The Japanese Yen climbed against all major currencies as a result of the apprehension from extended negotiations over the Greek debt swap and the search for haven assets.

Daily support 76.85 and resistance at 78.30.

EUR
The EU leaders meeting, searching for a solution for the debt crisis and expected to be in January 30, leads the EUR to decline against the Yen for a second day. From the other hand the USD demand was limited before the U.S. report on gross domestic product and following a Federal Reserve pledge to keep interest rates low for the next 2 years.

Daily support around 1.2880-85, resistance at 1.3185.

NZD
Pushing higher 6 weeks in a row against all major currencies, Kiwi keeps rising and seems unstoppable. The New Zealand has slowed down disregarding the EU debt crisis with declines in the retail sector and latest business surveys shows pessimism and believes things will be worst in the near future.

Daily Market Analysis

Asian Stocks are mixed this morning after declines on Wall Street at the end of trading session yesterday and in light of macro data published and earning release.

Japanese futures slide, easing further from a 3 month high hit previously this week, as Yen’s rise weighed on Japanese exporters. Prime minister of Japan said he expects the central bank to take determined steps to curb the strengthening of the local currency. Japan Nikkei225 futures are declining up to 0.5%

European futures are trading lower and futures on US indices signaling slight falls in trade opening today. Talks between Greece government and private creditors continuing today after reported some progress at meetings held last night. Futures on CAC 40 and FTSE 100 are down up to 0.2% while DAX30 is slighly higher.
 
News out of the US at 13:30 GMT are expected to show the US economy expanded by 3% with the release of the Advance GDP q/q.

Commodities Overview

Gold declined on Friday after hitting a 7 week high at 1,730$ late on Thursday. The overall outlook however is still bullish especially after the fed’s decision to keep interest rates at record low. January was a record month for gold gaining more than 10 percent since the start of the year, one of the best starts we have seen so far.

Attention now turns to the green debt crisis with bankers still cautious in investing in Europe.

Advance GDP data will be out at 14:30 GMT and high volatility is expected during that time.

Gold holds a strong support at 1,730$, the 7 week high. Next resistance is seen at 1703$, with 1680$ following.