[IMAGE] Forums Discuss these points in the Forums:  Forexnews Forum       Technicals Live Charts Analysis available from: Cornelius Luca   J.P. Chorek   Technical Research Ltd.   Charts & News featuring Standard & Poor's       Interest Rates   US: Japan: Eurozone: UK: Switzerland:   1.75%  0.15%  3.25%  4.0%  1.25-2.25%       [IMAGE] 	 [IMAGE]  European Traders Stuff Stocking With USD, Not EUR For Xmas  December 24, 7:00 AM: EUR/$..0.8804 $/JPY..129.82 GBP/$..1.4357 $/CHF..1.6707  European Traders Stuff Stocking With USD, Not EUR For Xmas by Jes Black  No Key Data; Federal Holiday  A steady flow of buy orders in thin holiday trade pushed USD higher following an initial sell off in Asian trade. USD/JPY rose above its opening level to a new high 3-year high of 129.87 in quiet European trade. JPY was also weak against the euro, but it held more than two yen above Friday's 2-year low at 116.65 per euro. Meanwhile, EUR/USD edged below Friday's close at 88.67 to a 2-week low of 87.78 as traders cut exposure to the single currency ahead of the Christmas holiday.  The euro's slide picked up speed in late European trade and plunged to a 2-week low of 87.78 cents, down almost one cent on the day. EUR/USD also fell further below 88.75, which marked the upper bound of the descending channel resistance of the move from its September high of 93.26. This is a bearish signal and indicates that like the pound, the European currencies' brief 2-week break of their downtrends vs the dollar may come to a close. EUR/USD also fell below 88.42 which marked the 50% Fibonacci retracement of the move from 83.50 to 93.26. Next support is seen at 87.50.  Moreover, USD/CHF soared to a day's high of 1.6708 despite speculation that the Swiss franc could be a safe haven over the holidays. Rediscovered optimism in the dollar reversed the Swiss franc's rise to last week's high of 1.6280 as safe-haven flows were seen boosting CHF. Last week saw money flow out of emerging markets following the announcement Argentina's debt crisis, which fed fears of default. However, Argentina's debt default and the possibility of further terrorist attacks in the coming week failed to much of a positive effect on the franc which held steady against the euro around 1.4690. USD/CHF resistance is seen at1.6680. Support stands at 1.6550, 1.6585 and 1.6465.  No economic releases are scheduled for today or tomorrow, but the key economic news for the US this week includes November durable goods orders, Redbook retail average, Jobless claims and Consumer confidence. From the Eurozone, major economic due for release include French PPI, France's INSEE industry survey, Italy's labor force survey, Euro area balance of payments, Euro area M3, French unemployment rate. From Japan there is industrial production, retail sales, CPI, household consumption and unemployment data.  Last week's US data showed a series of better than expected data, which rekindled optimism that the US economy was showing signs of recovery. Supporting the dollar was the third consecutive rise in the University of Michigan Consumer Sentiment survey to 88.8 in the final December reading from the preliminary 85.8. The dollar had risen against the major currencies due to better-than-expected US jobless claims and Philadelphia Fed survey that sparked hope of a turnaround in the US economy. This contrasted with lower than expected data from the Eurozone and the Bank of Japan's seventh straight month of lowering their assessment of the economy. Recovering faith in the US was enough to render the downward revision of Q3 GDP to 1.3% a mute point and was also enough to offset a 0.7% fall in consumer spending and a 0.1% fall in personal income.  GBP/USD resisted further losses at the hand of a falling EUR/USD, but was dragged below Friday's 10-day low of 1.4344 to a fresh low of 1.4331. Sterling was able to resist dollar strength as it climbed to a fresh 5-week high of 61.30 pence against the euro. GBP/JPY also managed to maintain above the 186 level after a sharp sell-off on Friday brought it off of 2-year highs around 188.26. However, GBP/USD outlook is bearish as 1.46 proved tough resistance last week and the pair has since resumed its descending channel path after crossing below 1.4455. Friday's close below this level could be a confirmation of a false break higher. Resistance is seen at 1.4445, the 50% Fibonacci retracement of the move from 1.4830 to 1.4060, followed by 1.4500/10.  Sterling is seen supported against the euro by Friday's remarks from Bank of England Governor George who said that there was a serious risk from a one size fits all monetary policy and that the persistent weakness of the euro was creating problems for the British economy. This highlighted the risk of the UK joining the euro given the ECB's reluctance to stimulate the economy despite the global downturn. EUR/GBP fell to a 5-week low of 61.30 pence, support seen at 61.00.  USD/JPY edged even closer to the key 130 mark and was undaunted by Japanese Trade Minister Hiranuma comments that a further drop in the yen was undesirable. Hiranuma's judgment is important because dealers will remained focused on any remarks coming out of Japan after last week's remarks showed little concern for a weaker yen. Dealers noted that the welcoming of a weaker yen could put JPY under further pressure in thin holiday trade this week. But Hiranuma's comments highlighted the fact that the focus from here will be how Japanese, US and Chinese officials react if USD/JPY passes 130 because of the trade implications of such a weak yen.  	[IMAGE] Audio Mkt. Analysis USDJPY Breaks Above 129       Articles & Ideas  2002: Euro Deja Vu?   USD/JPY: The Return of Dollar Rhetoric?       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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