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[IMAGE] Forums Discuss these points in the Forums: Forexnews Forum T= echnicals 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] =09 [IMAGE] Weakened By Wall Street Wo= es, USD Falls on Stop-Loss Orders February 11, 7:00 AM: EUR/$..0.8779 $/JP= Y..134.15 GBP/$..1.4220 $/CHF..1.6821 Weakened By Wall Street Woes, USD Fa= lls on Stop-Loss Orders by Jes Black At 11:00:00 AM US Jan K.C. Fed mfg su= rvey (exp n/f, prev 21) The dollar added to last week's losses against th= e European majors but held firm against the yen in London trade on Monday. = Dollar losses were seen as mostly technical after a break of key resistance= at $1.4180 in GBP/USD triggered stop loss orders to a day's high of 1.4235= . That in turn triggered a rise in EUR/USD above key resistance at 87.50 on= to a 2-week high of 87.80. However, the gains in sterling and the euro agai= nst the dollar are still regarded as an upward correction. Heavy buying of= sterling by European banks drove GBP/USD through an earlier high of 1.4176= rising to key resistance at 1.4235. The reaction high of 1.4247 now needs = to be broken in order to wage a move on key resistance at 1.4340, which mar= ks the 61.8% retracement of the 1.4525-1.4038 move. Without a break of that= level, the pair remains heavy, dealers say. Today's producer price data s= howed a small 0.1% increase in output prices and a 0.6% fall in input price= s in January, as expected. But the market will be more interested in tomorr= ow's RPIX inflation data and Wednesday's Bank of England inflation forecast= which should provide clues on interest rate hikes later this year. Stronge= r than expected inflation would lead to further expectations for the UK to = be the first major country to raise interest rates this year as the BoE tri= es to stem debt fueled consumer spending. EUR/USD shot to a two-week high = of 87.80 on a wave of stop-loss buying after breaking 87.50 with the help o= f GBP/USD buying. However, the euro still needs to clear 88 cents followed = by key resistance at 88.75/80 to remove its bearish outlook. That level mar= ks the 61.8% retracement of this year's high to low of 90.63 to 85.63. Th= is should prove difficult ahead of tomorrow's meeting of European Union fin= ance ministers in Brussels where Germany is facing censure for allowing its= deficit to come close to the 3% of GDP limit. An official warning would no= t only be embarrassing for Germany but could also highlight the difficulty = facing the Eurozone's largest economy caught between the European Central B= ank not lowering interest rates and Germany's own brain child the Growth = and Stability Pact. Therefore, if Wall Street finds its footing today and = markets then turn their attention to the growth inhibitive structure of the= Euro area, the single currency could come under renewed selling pressure. = The Swiss franc rose in tandem with the euro and sterling against the dol= lar. USD/CHF fell to a day's low of 1.6820, just pips above Friday's low. W= ith support at 1.6875/80 taken out, the dollar needs to maintain above 1.68= 20 to avoid further fall to the 1.6685 area. This level marks the 61.8% re= tracement of the 1.6350-1.7229 rally, which should hold dealers say. Econom= ic data today showed the Swiss January jobless rate rose to 2.6% from 2.4% = in December, as expected. USD/JPY maintained above 134.00 support but is l= ikely to come under renewed pressure if option barriers rumored to exist ar= ound 135 to 136 prove to difficult to overcome. Repatriation concerns are a= nother reason traders should remain weary to short the yen as Japanese corp= orations bring home overseas assets ahead of the fiscal year end in March. = Support is seen at 134.10 and key support at 133.40. Japanese officials ar= e also likely to try and reign in the yen to a range between 130-135 over t= he short term as the cost of the weak yen policy has been detrimental to as= set prices as it undermines confidence in the ability to hold value. Given = the weakened state of Japanese financial institutions amid falling stock pr= ices, the Japanese are now more likely to shun yen weakness in order to res= tore confidence in the market. The dollar will likely continue to follow W= all Street with dealers weary of further losses ahead. Last week's dollar w= eakness reflected 5 consecutive days of decline before Friday's rally. Stoc= ks suffered from the debacle with Enron that had stoked pessimism throughou= t US markets, leading investors to overlook strong US economic data, such a= s better-than-expected productivity figures. Therefore, the recent fall in = US equities is likely to be contained and the greenback could regain its st= rength as further signs of a US economic recovery emerge. But if the US has= another disappointing day on Wall Street today, the dollar could suffer fu= rther setbacks on the basis of flows to the US market slowing due to invest= or concerns. There is little in the way of economic data this week until W= ednesday. Today's only release is the KC Fed manufacturing survey. in view = of the positive the recent upturn in other national manufacturing indicator= s, the market expects to see similar improvements in the KC area. =09[IMAG= E] Audio Mkt. Analysis EUR/JPY Sets the Pace Articles & Ideas The Sw= iss National Bank and the franc A Weak Yen Bites Articles & Ideas F= orex Glossary Economic Indicators Forex Guides Link Library [IMA= GE] =09 =09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09 =09=09 This e-mail is never sent unsolicited. If you wish to unsubscribe f= rom this or any other Forexnews.com newsletters, please click here . Any = opinions expressed by representatives of Forexnews.com or its affiliates as= to the commentary, market information, and future direction of prices of s= pecific currencies reflect the views of the individual analyst, and do not = necessarily represent the views of Forexnews.com or its affiliates in any w= ay. In no event shall Forexnews.com or its affiliates have any liability fo= r any losses incurred in connection with any decision made, action or inact= ion taken by any party in reliance upon the information provided in this ma= terial; or in any delays, inaccuracies, errors in, or omissions of informat= ion. =09
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