The heads of the G20 gathered today in Berlin approved a plan to help restore confidence in markets and agreed on the need to tighten global regulation to prevent future crisis that the one we are actually having. With global recession deepening, coordinated actions to boost banks transparency and crack down on tax havens was the central point of the meeting.
In other order of things, rumors of banks nationalization in the U.S. (Citigroup and Bank of America at the head of the list)could impact the dollar, as such measures only increase the debt and the liabilities of the US Federal Reserve and hence taxpayers.
Also, the ECB is studying unconventional policy tools to ease financial strains, but isn't in a rush to introduce them because of more scope to lower interest rates, said Athanasios Orphanides member of the ECB governing council.
EUR /USD - Holding above the 1.2800, 4 hours charts suggest some exhaustion to the upside, and we could see some downward correction before another attempt to move higher. With resistances at 1.2827 and 1.2886, above the last 1.2942 should hold. Clear break above will open doors for a retest of the 1.3100 zone. Supports for the next hours will be at 1.2800, 1.2758, 12720/30 zone and finally 1.2680-
GBP/USD - Looking a bit exhausted to the upside, the pair needs to break above the 1.4466 zone, the 4hours 200 EMA also a daily descendant trend line, to regain bullish steam. Next resistances from there will be at 1.4486, 14548 and 1.4607. Supports under 1.4386 will be at 1.4331, 1.4302 and the tough zone around 1.4350.
USD /JPY - Rejected form the key 94.60, the pair made a nice comeback to the 93.00 zone. Some more Japanese Yen strength could be seen, with supports at 93.10, 92.60 zone and 92.20. Expect a bounce back up from that level. Resistances at 93.65, 94.00, 94.45/60 zone and above, 94.90.