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Daily FX Report
The EUR jumps by 1,3% against the USD to 1,5830 as ECB's Trichet said euro zone rates are at right level
Thu, Mar 27 2008, 10:10 GMT
by Varengold Bank Research Team
Varengold Wertpapierhandelsbank AG
Good morning from wonderful Hamburg and welcome to Varengold’s Daily FX Report. After a strong coffee and a little market check will follow the FX report for a new exciting trading day without any snowy problems.
Markets review
On Wednesday the EUR jumps by 1,3% against the USD to 1,5830 as ECB’s Trichet said euro zone rates are at right level. That speech stopped expectations of a near-term ECB rate cut. Together with an unexpected improvement in business confidence in Germany and France, his comments prompted investors to focus on the widening yield advantage in the EUR over the USD. Additionally charges a series of weak US economic data and expectations for a big Federal Reserve rate cut the greenback. Some analysts expect that the mix of weak US and strong euro zone economic data should soon push the pair back to record high at 1,5905 and beyond.
USD/JPY fell down 0,5% during the day at 98,56. Rumours in the market say that a big Japanese institutional investor sold USD for a second straight day. Some traders speculate the USD selling could be tied to repatriation flows before Japan’s fiscal year ends on Monday.
The way the RBA see it means the Australian resilient baking system and relatively favourable economic outlook that the country is much better placed to deal with global market turmoil than many others. The AUD/USD raised 0,21% and closed the trading session at 0,9200.
Technical analysis
USD/JPY
The old support at 101,21 of the USD/JPY from the beginning of march develops to a resistance level. This effect is observed also on other Instruments. But on long term view the USD/JPY looks rising.
EUR/AUD
The EUR/AUD trades since the end of February in an upward trend. It has reached a very high level so the trend could break and turn downward. When the EUR/USD converge the 1,60 mark, this could accelerate the motion.
| Currency | Support 2 | Support 1 | Pivotpoint | Resistance 1 | Resistance 2 |
| EUR / USD | 1,5755 | 1,5797 | 1,5822 | 1,5864 | 1,5889 |
| USD / JPY | 98,28 | 98,64 | 98,92 | 99,28 | 99,56 |
| GBP / USD | 2,0018 | 2,0044 | 2,0068 | 2,0094 | 2,0118 |
| USD / CHF | 0,9857 | 0,9872 | 0,9904 | 0,9919 | 0,9951 |
| AUD / USD | 0,9163 | 0,9183 | 0,9204 | 0,9224 | 0,9245 |
| CAD / USD | 1,0153 | 1,0167 | 1,0177 | 1,0191 | 1,0201 |
| NZD / USD | 0,8013 | 0,8034 | 0,8047 | 0,8068 | 0,8081 |
| EUR / AUD | 1,7091 | 1,7146 | 1,7197 | 1,7252 | 1,7303 |
| EUR / CAD | 1,6030 | 1,6080 | 1,6105 | 1,6155 | 1,6180 |
| EUR / CHF | 1,5626 | 1,5646 | 1,5671 | 1,5691 | 1,5716 |
| EUR / GBP | 0,7852 | 0,7871 | 0,7886 | 0,7905 | 0,7920 |
| EUR / JPY | 155,48 | 156,17 | 156,58 | 157,27 | 157,68 |
| GBP / CHF | 1,9788 | 1,9818 | 1,9873 | 1,9903 | 1,9958 |
| GBP / JPY | 197,19 | 197,95 | 198,57 | 199,33 | 199,95 |
| Date | Time (GMT) | Economic Indicator | Last |
| 27.03.2008 | 11:00 | GB CBI distributive trades | -3 |
| 27.03.2008 | 12:30 | US GDP deflator, final Q4 | 2,7 |
| 27.03.2008 | 12:30 | US GDP sales, final Q4 | 2,1 |
| 27.03.2008 | 12:30 | US Jobless claims 4-wk avg | 365,25 |
| 27.03.2008 | 11:00 | US jobless contin claims | 2865 |
| 27.03.2008 | 12:30 | US PCE prices, final Q4 | 4,1 |
| 27.03.2008 | 15:00 | US KC Fed manufacturing | -5 |
Published on Thu, Mar 27 2008, 10:48 GMT
Archive
- Trichet said inflation remains his top concern
Published On Fri, May 9 2008, 08:23 GMT - NZD/USD hit hard
Published On Thu, May 8 2008, 09:21 GMT - The British consumer morale falls in April to its lowest since records began four years ago
Published On Wed, May 7 2008, 13:23 GMT - The USD fell on Monday for the first time in three sessions
Published On Tue, May 6 2008, 08:00 GMT - Focus on Europe with ECB and BoE policy meetings
Published On Mon, May 5 2008, 09:08 GMT
Varengold Wertpapierhandelsbank AG
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