Major currency pairs December overview:
EUR/USD - unexpectedly rallied in the first quarter of the month but corrected down during the last 2 weeks of December. The monthly high was reached on December 18 at 1.4719, the lowest value was reached on December 4 at 1.2552 and the month ended at 1.3936.
GBP/USD - posted a double bottom pattern and continued to form a third bottom in December; it renewed its more than a 6-year record lows; the highest rate was detected on December 17 at 1.5722, the lowest - on December 31st at 1.4354 (the lowest level since April 2002); the month ended at 1.4537.
USD/JPY - continued to fall in December, renewing its 1995 minimums. The highest value was at 95.55 on December 1, the lowest - 87.13 on December 17; the December trading ended at 90.86.
EUR/JPY - rose for the first month sine July this year; it reached its monthly maximum at 131.00 on December 18 and its lowest minimum at 115.88 on December 5. The December trading closed at 126.65.
Fundamental background of the month:
This month Forex market was still under the great influence of the ongoing economic recession in the developed countries. But the focus from the growing yen and dollar was shifted towards the euro, which amidst the very low near-zero interest rates in U.S. and Japan attracted enough traders to propel the euro against the other major world currencies.
Interest rate changes in December:
United States - from 1% to the variable range 0%-0.25%.
Eurozone - from 3.25% to 2.5%.
United Kingdom - from 3% to 2%.
Japan - from 0.3% to 0.1%.
Canada - from 2.25% to 1.5%.
Australia - from 5.25% to 4.25%.
New Zealand - from 6.5% to 5%.
Switzerland - from 1% to 0.5%.
South Africa - from 12% to 11.5%.
Denmark - from 5% to 3.75%.
Norway - from 4.75% to 3%.
Sweden - from 3.75% to 2%.
Slovakia - 3.25% to 2.5%.
Czech Republic - 2.75% to 2.25%.
Hungary - from 11% to 10%.
Poland - from 5.75% to 5%.
South Korea - from 4% to 3%.
