Daily Market Review 8 of January

In recent 24 hours the US Dollar lost 0.5-1% to all major currencies and even Yen. Analysts assume that it is related to the coming changes in the US government. Already this week Barack Obama might announce the name of a new finance minister of the US. Most likely it’ll be Jimmy Lew, who really fits well this position. In 2011 he managed to convince republicans to stop the drama and vote for rising of the governmental debt. A lot of people hope that he’ll succeed in repeating it again. However it would be a negative scenario for the US Dollar and some weakness of the currency against the background of such events is quite possible. But now it is too early to talk about the end of another political battle in the USA. In the market there’s not much action and there are no clear trends. The only exception is the Yen. The finance minister of Japan Taro Aso recently stated that the country would buy obligation of the ESM (European Stability Mechanism) without any limits in order to support Europe and to solve the problem of the strong Yen at the same time. Gold is growing and today is expected to test 1690.



The pair continues to develop its growth. Today is relevant to consider consolidation on the current level and continuation of growth. The short term goal is 1.3190. After an insignificant correction if the pair crosses 1.3200, it will be the end of the first stage of growth and then there might be another correction.