Search
Daily FX Report
0
0
Yesterday the crude oil decreased 11$
Wed, Sep 3 2008, 08:17 GMT
by Varengold Bank Research Team
Varengold Wertpapierhandelsbank AG
Good morning from wonderful Hamburg and welcome to the Varengold Daily FX Report. Yesterday the crude oil decreased 11$ and reached the 105$ level for the first time since the beginning of April. This development ensured that the Equity markets escaleted.
Market review
The USD is trading close to a 10.5-month high against a basket of major currencies due to a negative development in other major economies and a sharp drop in oil prices. According to a dealer at an European bank, the low oil prices will continue to support the USD. The market will probably be also drew support from weakness in high-yielding currencies triggered by the Reserve Bank of Australia’s interest-rate cut.
Today big offers in GBP and NZD come through the market. It also drive the EUR/USD to a fresh 7-mth low. No news seen behind the big flows and it is not fastened to commodities so much since gold and oil are relatively calm compared to Tuesday. The EUR/USD drops 0.7% to 1,4415 and is geting closer to the 1.4400 support level. The NZD/USD plunges nearly 2% at one point to a 1-year low of 0.6735 and the GBP/USD falls also down 0.7% to 1.7707.
The economy of Australia has reached its lowest development in over 3 years last quarter. The weaknes in consumption and housing overshadowes the economic outlook and reinforces the assessment for further rate cuts. The AUD/USD is down about 30 pips to a low of 0.8295. That is still close to a 1-year low of 0.8270 hit the previous day. The AUD/JPY is also down to 90.20 from around 90.24, close to a 5-month low of 89.80.
GBP/CAD
Since the end of last year the GBP/CAD has been trading in a horizontal large trend channel with a resistance at 2.0545 and a support level at 1.9303. At the end of August the market broke trough the support and touched its 10-month low at 1.9. If the market doesn’t break trough this new support level we will assume a recovery phase.
EUR/JPY
The EUR/JPY has shown a bullish trend development from the middle of march to the beginning of August with a resistance level at 169.77. Since the beginning of last month the market has shown a strong bearish face and broke trough the 165.21 and the 158.56 support level. This could indicate a further continuation of the downward trend with a support level at 151.84.
Published on Wed, Sep 3 2008, 08:26 GMT
Archive
- The JPY gained against a basket of major currencies
Published On Mon, Dec 1 2008, 11:44 GMT - The USD headed for its biggest weekly decline in almost three years against the EUR
Published On Fri, Nov 28 2008, 09:09 GMT - The EUR/USD was back again above the 1.29 level
Published On Thu, Nov 27 2008, 09:08 GMT - The JPY has gained against the EUR
Published On Wed, Nov 26 2008, 08:37 GMT - Yesterday the EUR/USD rose 2.8 %
Published On Tue, Nov 25 2008, 09:49 GMT
Varengold Wertpapierhandelsbank AG
| Große Elbstraße 27, 22767 Hamburg
http://www.varengold.de/ | info@varengold.de
Legal disclaimer and risk disclosure
This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational purposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.