Daily FX Report

Good morning from wonderful Hamburg. Some of the currency pairs started with big gaps this week specially the GBPUSD. It opened about 230 pips higher than Friday which partly could be caused by the news from the US credit market. For the new week we wish you a nice start with your trading.

Markets review

Crude Oil is up nearly 2 $ and trades around the 109 $ level, back from a five-month low on worries that Hurricane 'Ike' could destroy energy facilities in the Gulf of Mexico and on the decision of the US government to take over Fannie Mae and Freddie Mac. Gold is also up nearly 20 % with an uncertain outlook on the USD. The EUR/USD is up to 1.4412 today and back from its 11-month low at 1.4196 on last Friday.

The JPY sharply recovered from its record highs last week, down more than 2 % against the AUD, NZD and GBP. Big moves in the spot market could be caused by option traders who tried to cover their gamma positions in Cross/JPY after the currency reached its 2-year high against the AUD and NZD and a near 5-year high against the GBP last week. The AUD/JPY jumped 2.7 % to 90.29, sharply above its 84.98 hit last week. The EUR/JPY is up to a high of 157.02 for a gain of over 2 % from late US trading on Friday. According to a trader of a Japanese bank, gains in equities are helping to trigger short-covering in USD/JPY and Cross/JPY. The USD/JPY has reached the 108.75 level and is up 0.9%.

Technical analysis

EUR/GBP

Since the beginning of April, the EUR/GBP has been trading in a horizontal trend channel with a support at 0.784 and a resistance line at 0.803. After the market broke trough the resistance in August, it started a recovery toward the channel. If the market breaks trough the 0.803 level we might assume further downward movements into the direction of its support.

GBP/JPY

Since the beginning of August the GBP/JPY has been trading in a bearish trend channel. After the first break trough the lower trend line, the market has shown a comeback to the channel in combination with a gap to its upper trend line. If the market breaks trough the upper trend line we might be able to expect a bullish trend development.

Pivot Points - Daily FX Support and Resistance Levels

Daily Calendar & Key FX Events

Varengold Bank

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