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Hey everyone, today I prepare a currency buffet for you, I analyze the Euro USD, Cable, Pound Swissy, Aus USD and an old favorite, the Aussie Yen cross. Very simple analysis, I think much of today’s market direction will depend on where we start London relative to support and resistance. Good luck and I hope you enjoy the video!! David Pegler

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EUR/USD

The US currency secured limited net gains in Asia on Tuesday before consolidating around 1.45 in early Europe.

The Greek government announced that it would launch a fiscal stability plan on Wednesday, designed to cut the budget deficit to around 3% of GDP in three years time. A credible plan could boost sentiment surrounding the weaker Euro-zone members to some extent, but underlying confidence will still be fragile and fears will continue to limit the scope for Euro support.

China’s increase in reserve requirements, allied with weaker than expected earnings from US company Alcoa unsettled the Euro to some extent as risk appetite deteriorated, although the impact was measured as the dollar ...

Biggest % gainers: GBP/JPY up 1.01%, EUR/JPY, AUD/JPY on JPY weakness.

Biggest % losers: USD/CAD down 0.55%, USD/CHF on mild USD weakness.

Oil $80.23
Gold $1,133

Comments from BOE's Andrew Sentance stoking the pound this morning as he said, "interest rates may have to increase this year". Pound Rises as Bank of England Comment Fuels Rate-Increase Bets - Bloomberg.com

GBP Manufacturing Production m/m worse at 0% vs. 0.3% expected and 0% last time.

USD Beige Book comes out at 2pm EST (Fed's assessment of economic conditions). Comes out two weeks before the next rate decision.

NZD Building Consents m/m out tonight at 4:45pm EST.
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EUR/USD

The dollar weakened further in Asian trading on Monday with lows beyond 1.4520 against the dollar as there were further generally dovish comments on interest rates from Regional Fed President Bullard. Risk appetite was also generally firmer which curbed any defensive demand for the US currency.

Following the weaker than expected US payroll report on Friday, there will be a downgrading of market expectations surrounding higher US interest rates during the first half of 2010 and this will tend to undermine dollar support. Comments from Fed officials will remain under close scrutiny over the next few days with a particular focus on any remarks from Chairman Bernanke.

Bond yields over equivalent ...