Forex Bull

China Eastern Airlines plans to raise 7 billion yuan from selling shares to its state-owned parent company — more than double the amount originally planned — to help it weather a financial crisis.

The Euro recovered to the 1.41 level in overnight trading after the sharp 450-pip tumble from the spike high at 1.4362. Germany?s Consumer Price Index is set to print at the lowest in over 2 years in European hours, threatening recent strength in the single currency with the prospect of substantial ECB interest rate cuts in 2009.

The companies whose tainted milk products sickened nearly 300,000 children and were blamed in the deaths of six will likely pay 1.1 billion yuan in compensation to victims’ families, a state-run newspaper said Tuesday.

Anyone curious about whether China is intentionally allowing the RMB to depreciate, need look no further than the Central Bank's latest forex reserve figures, which registered a decline for the first time in nearly six years. At the same time, Chinese trade figures indicate that exports fell for the first time in seven years, which limits the government's ability to build up new reserves

The dollar was unchanged against the Japanese yen late Monday night. The greenback was flat at 90.33 yen, the same as what it bought in late afternoon trading.

Oil rose for a third day on Tuesday as traders kept scrutiny on Middle East crude supply amid the Israeli-Hamas conflict, but prices were still on track to end the year down 60 percent, the biggest annual loss on record.

As 2008 comes to a violent end, forex analysts are releasing their predictions for 2009. Most believe that risk aversion and interest rate discrepancies will cease to weigh on forex markets, especially compared to 2008, when investors unwound carry trades and parked their money in low-yielding (but apparently less risky) US and Japanese securities

With no US economic data on the calendar today, the dollar weakened against every major currency except for the British pound. Trading continues to be very thin with commodities being the only products that are really moving. The tensions in the Middle East have driven oil and gold prices higher.

During the first six months of 2008, commodities looked to be the savior of investors who were losing money in the stock market.

Fundamental forecasts and technical price patterns are rarely clean and clear for any market. For recent GBPUSD congestion, this reality leaves the pair on the edge of a potentially lucrative range setup or major breakdown.