Daily FX Report
Good morning from wonderful Hamburg and welcome to the Varengold Daily FX Report. Yesterday, the worldwide equity markets traded with some losses. The US indices lost about 2%. In addition, oil had a recovery after its bullish rally on Friday. Let's have a look, and see what will happen today.
Markets review
The CAD slipped against the USD on Monday, as equity markets tumbled on credit market fears, lessening the appeal of North American assets and the demand for CAD to buy them. In response to the falling stock markets, investors bought safe haven government debt. The CAD closed at 1.0509 against the USD and was down from 1.0486 where the market closed on Friday. Because of the thin volume in USD/CAD, the market stayed in a tight range between 1.0440 and 1.0515, also because of a holiday in Britain, which tends to amplify moves.
The USD extended gains against the EUR on Moday, with European data releases being eyed for further evidence of declining economic growth in the euro zone. The AUD reached a seven month low of 0.8564 as investors sold riskier assets and high yielding currencies on renewed credit troubles. The USD/JPY was little changed and traded at 109.32. After New Zealand posted its highest monthly trade deficit in eleven months in July the NZD fell as low as 0.6896 against the USD.
Technical analysis
AUD/USD
The AUD/USD gave some hope for bullish trends in July after a break through its strong resistance around 0.964. However, after a short excursion over this level, the market started a rally downwards and stopped around 0.87. After a short recovery, the market turned down again. It is hard to predict the market's next moves, but it could continue with its bearish trend.
EUR/CAD
In the EUR/CAD, the strong bullish market movement, started in May, was stopped promptly at the end of July. Since the beginning of August the market has been moving downwards, with no signs for a recovery any time soon. If the market breaks the upper trend line, it could comes up some long potential. Otherwise, the bearish trend could persist.
Pivot Points - Daily FX Support and Resistance Levels
Daily Calendar & Key FX Events
Varengold Bank
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