Daily FX Report
Good morning from wonderful Hamburg and welcome to the Varengold Daily FX Report. The ECB and BoE are widely to leave interest rates at 4.25 % and 5.00 % when they will meet later on the day. However we hope for an successful trading day.
Markets review
The JPY is snaping an 8-year slide against the EUR and the AUD as the abrupt global economy slowdown forced investors to unwind long-entrenched positions, pushing these currencies into a downward trend. These investors were surprised by the outlook towards that interest rate cuts in economies such as Euro zone were suddenly shifted. The JPY rises against a basket of currencies. The EUR/JPY was down 0.2 % to 156.55, while GBP/JPY reached its 3.5-year low at 191.60. According to a trader in a Japanese trust bank, the EUR could continue its bearish moves due to signs of economic recession in the euro zone. The trader adds that decreasing Asian equity markets may be pressuring cross/JPY currency pairs in general. The EUR/USD is also down to 1.4490 after it gives up earlier gains. Some traders guess stops are starting to be placed on the upside in EUR/USD at 1.4530/1.4560.
Exports in Australia fell 1 % while imports rise 4 %. This information gives margin traders another reason to sell the weak AUD. AUD/USD decreased 0.5 % on the day to a low at 0.8303, back close to its 1-year low at 0.8233 struck the previous day.
Technical analysis
EUR/CHF
Since the end of April the EUR/CHF has been trading in a horizontal trend channel with two resistance lines at 1.636 and 1.625 and a support level at 1.6. After the fourth touch of the 1.625 resistance line the market reached the support level for the third time. If the market doesn’t break trough the support level we could expect a repetitive comeback to the resistances.
USD/CAD
Since Monday the USD/CAD has been trading in a rising trend channel. Yesterday the market reached the 1.0595 level from the end of last month. If he market breaks trough the new support level we could assume a short-term bearish movement with a support at 1.047.
Pivot Points - Daily FX Support and Resistance Levels
Daily Calendar & Key FX Events
Varengold Bank
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