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Daily FX Report

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Yesterday, the EUR/GBP fell 3.08

Wed, Jan 7 2009, 09:20 GMT
by Varengold Bank Research Team

Varengold Wertpapierhandelsbank AG

Good morning from beautiful and cold Hamburg. The week wears on and the World’s Central Banks rate decisions are on the spotlight again. According to an economist survey from Bloomberg most of them estimate that the BoE and ECB cut their interest rates. We will be anxious how the FOREX market will respond. However, we wish you a successful trading.

Market review

Yesterday, the EUR/GBP fell 3.08 % from Fridays close at 0.9569 to Mondays close at 0.9274. This is one of the biggest day-loss ever, even the U.K. consumer confidence fell to its lowest level since at least 2004 to 47 from 50 in November. On the other hand the Euro Zone Consumer Price Index is set to show inflation fell to an annual rate of 1.8 % whereby the squeeze on the ECB to cut its key interest rate again is getting higher. EUR/USD traded near a three-week low at 1.3547 while the EUR/JPY today fell from its opening at 127.35 to its low at 126.40.

Yesterday, the AUD/USD rose to the highest price since more than 2 ½ month at 0.7203 as well the NZD/USD could extend its gains and rose to a high at 0.5919 as prices for commodities increased. AUD/JPY climbed to an eight-week high from its 2nd January opening at 64.01 to its yesterday high at 67.26.

The U.S. auto sales fell 36 percent in December and pushed the industry’s annual volume to a 16-year low. Yesterday, the USD/JPY gained 1.75 % to 93.44 the currency pair barely trades currently at 93.13. USD/CAD fell from its day high at 1.2225 to its close price at 1.1890 and touched the lowest level since more than two weeks.

USD/CHF

With the beginning of 2009 the USD/CHF breached the bearish trend which lingers since End of November and it seems to negotiate its first resistance at 1.1105. If this line could be passed there is bullish fancy up to the second resistance at 1.1505. The Oscillator shows subsidiary that the shortperiod line climbed over the middle-line which could be a sign that the bullish trend will boost.

AUD/JPY

Since the beginning of November the AUD/JPY has been trading in a narrow trend channel between 63.73 and 56.87. On January 2nd the currency pair breached the trend channel, climbed over the upper Bollinger bands and started a bullish trend. Now it seems to reach the first resistance at 69.66. If this line will be crossed it could boost the trend and assisted to test the next resistance.

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Published on  Wed, Jan 7 2009, 09:57 GMT