Good morning from our offices by the Hamburg Fish market. Yesterday the EUR suffered high losses versus the USD but more of that, later in the Report. As well as the EUR, crude oil price decrease under the important 60 USD level where it supported the last week, a further sign for the possible high correlation of the EUR and the crude oil prices.
Market review
The USD touched a two week high against a basket of currencies on Tuesday. Worries about a deteriorating of the global economy prompt investors to shun riskier assets and to invest in the safety of the USD. A sell off in the worldwide stock markets further dampened investor appetite for risk, which boosts the demand of the strong USD and the growing JPY. A break of the recent trading ranges further exacerbated the selling pressure on the EUR. In the late US trading session the EUR was 1.6 percent down at 1.2529 against the USD, while USD / JPY fell 0.3 percent to 97.71. The US Dollar index was 1.4 percent up and traded at 87.146.
Australia wage price index rose 0.9 percent for the 3rd quarter from the previous quarter. The Index climbs 4.1 percent compare to the earlier year, according the Australian Bureau of Statistics. The Westpac Melbourne Institute consumer sentiment index bounced 4.3 percent, or 3.5 points, to 85.5 in November as sharp falls in interest rates and petrol prices lessen pervasive pessimism about the economy. The AUD lost 1.8 percent versus the USD yesterday and closed at 0.6574.
GBP / CHF
The GBP / CHF trades with two breakouts in the lower half of the Bollinger Bands and resisted sometimes on the middle Bollinger line since mid of September. Since the beginning of November the market follows the middle line with a clear down trend. This could hold on until the middle Bollinger line will be broken.
USD / CAD
The CAD could rebound some of its losses versus the USD after the strong upward trend rally in the currency pair in October. Since the beginning of November the CAD made some new losses regarding the strong USD. If the market will not break through the bullish trend line the trend could hold on.
