Daily FX Report

Good morning from wonderful Hamburg. Yesterday the U.S. government once again affected the FOREX market with its explanations about the rescue-plan for GM and Chrysler. However, we wish you a prosperous trading day.

Markets review

The JPY rose near to a two-week high against the EUR. This movement deployed by the decision of Standard & Poor's to cut Irelands AAA credit rating. But the 16-nation currency recovered in the early Tokyo trading session, based on an increased unemployment rate in Japan. The rate climbed to 4.4 % to a three-year high in February and job openings disappeared at the fastest pace in more than three decades as the recession deepened. An index of executive and consumer sentiment in Europe declined to its lowest level since the indicator began in 1985. The GBP/USD fell for the fourth day as gilts and equities dropped on Monday after the U.S. government said that a “Chapter 11” bankruptcy may the best for chipped U.S. auto makers General Motors and Chrysler. Yesterday also the EUR extended its losses versus the USD and fall 0.71 % to 1.3114 at its low.

Australia's central bank said for the first time that the economy is likely to slide into a recession this year amid slumping global demand for exports. The central bank Deputy Governor Ric Battellino said during a conference in Brisbane, that the GDP is “likely to fall in 2009” after the bank estimated a 0.5 % growth in February.

Technical analysis

EUR/GBP

The EUR/GBP trades near to its supportlevel at 0.9241 and it seems that the Bollinger bands narrows each other like a bottleneck as same as on March 24th. Comparative to this paradigm could this be a sign that the currency pair may test the support again. Should the EUR break clearly through this line, this could accelerate the downward trend.

AUD/JPY

Since March 27th, the currency pair has been trading close to bearish trend line and crossed two of its support-lines. Yesterday the AUD/JPY touched its lowest level and we see a huge candle stick with a long roving which initiate a upward movement. In order of this its resistance at 66.33 was crossed again and now it seems to cross the bearish trend line as well.

Pivot Points - Daily FX Support and Resistance Levels

Daily Calendar & Key FX Events

Varengold Bank

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