FX.co ★ Fundamental Analysis, December, 29 / 2011

We said in previous reports that, unless something important happened, the forex market was not going to provide appropriate movements this week.

That "something" happened, and was the European Central Bank in charge of generating a stampede against its currency, the euro.

The nearly 3 billion euros in the state remain deposited by the banks were sufficient to bring the market lethargy, and make the single currency reaches its annual minimum just a day before the end of the period.

Technically alarming measured in terms of monthly charts for those who bet on a rising euro. It is known that a maximum or minimum closure at any timing, indicating a high probability of trend continuation. Imagine this in monthly charts what it means. And we still have two days of activity.

It is a reflection on the matter. Such a mass of liquidity has not served even in part to relieve the distressing situation in Europe. And all that was achieved was that the dollar, until recently beaten, take force on all fronts.

So now the euro is seen as the minimum annual bankruptcy, the British pound for the minimum of 3 months, and coins "commodities" are weakened, alongside oil and gold, especially the latter.

Nevertheless, European exchanges have no losses, while averaging the session, and in some cases earn modest profits.

The slight optimism that had been generated in the market for the placement of debt by the Italian Treasury on Wednesday at usual rates for an economy on the strength of Italy, was diluted a few hours: the placing of today, Thursday, returned to have a rate close to 7%.

As significant data for the U.S. session, expected weekly unemployment requests at 8:30 Eastern, the Chicago PMI at 9:45 and pending home sales at 10:00.