FX.co ★ Fundamental Analysis for January 25, 2012

The European shares have a downward trend now, which strength is unusual, and that is erasing the gains of the last days.

In addition, Dow Jones index futures plummet, endangering the short-term trend that it had until Tuesday at the American session.

All this happens at a time when there are debates about new solutions of the debt problem of Greece, which default seems fatal, if they do not receive financial assistance urgently.

In this context, the dollar gained strength at all fronts, with special emphasis on the euro, Swiss franc and British pound in particular, as it had fallen hours earlier amid disappointing preliminary UK GDP, which fell again in the fourth quarter of 2011 below zero, plunging the island into a recession that had never been outcome since the outbreak of the crisis.

Taking everything into consideration, the dollar is the winner of the day, which moreover is already proving even several hours before the start of the American session.

In addition to the situation in Europe, the Fed will give more spice to the session on Wednesday, at 2:15 Eastern with the FOMC data release. The fundamentals will be announced in the statement signed by the head of the Fed, Ben Bernanke.

Today you will also see the releases of the pending home sales at 10:00 and at 10:30 - the weekly oil inventories, especially in America, though this will not have much influence on the prices.