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Daily FX Report

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Today the EUR/USD increased to 1.4040 in Tokyo from 1.3988 in New York yesterday

Fri, Jun 26 2009, 08:38 GMT
by Varengold Bank Research Team

Varengold Wertpapierhandelsbank AG

Tonight, the Forex marked froze for several minutes as the news of Michael Jackson’s death appeared on the news tickers. In remembrance to the King of Pop, we are listening to his most successful world music album: ”Thriller” at preparing the Daily FX for you.

Market review

The CHF weakened for a second day against the EUR and the USD on speculation the SNB continues to sell its currency to stem the last exchange rate gains to support the exports of the country. A view on the chart indicates that the national bank entered the market twice. However, the CHF was able to recover after interim losses and the EUR/CHF closed the Thursday with a gain of 0.1 % and the USD/CHF lost 0.4 %.

The GBP dropped against the EUR more than 0.6 % after central bank Governor King said the UK economic recovery will be slow. “I feel more uncertain now than ever,” said King and “,this is not the pattern of a recession coming into recovery that we have seen since 1930s.” Nevertheless, the OECD raised its UK growth forecast for 2010 to “mildly recovery” compared with a previous projection of a 0.2 % contraction.

Today the EUR/USD increased to 1.4040 in Tokyo from 1.3988 in New York yesterday. An incriminating factor is the speculation that the Federal Reserve official statement today will signal the central bank will keep interest rates low. The JPY fall for the fourth day against the AUD as commodities gained, spurring the demand for the South Pacific assets. The NZD/USD decreased 0.3 % after a 0.8 % gain at the previous day, after the government released the economy shrank at a faster pace.

GBP/AUD

Yesterday, the GBP/AUD touched during his bullish movement the lower line of the Andrew Pitchfork analysis. At the same time the MA Oscillator reached a low level and is going to cross the signal line coming from below. Also the Momentum is negative and is pausing on a low level. If these signals are strong enough, the GBP could rebound and could rise to the fan mid line.

USD/CAD

Since the beginning of June, the USD/CAD has been trading in an upward trend channel. The currency crossed the first pivot resistance, but rebounded afterwards on the 50 % Fibonacci level. The next days will decide if the pair could break out of the trend duct and develop more up potential. Or the pair could drop through the trend line and change the direction towards the lower area of the trend channel.

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Published on  Fri, Jun 26 2009, 10:05 GMT