Good morning from beautiful, cold and stormy Hamburg. We hope you enjoyed your weekend and you can start relaxed into the new and maybe interesting week. On Thursday the ECB council will meet and announce in Frankfurt its rate decision. We wish you a good start and a successful trading week.
Market review
The GBP/EUR rose to the highest level in two weeks as the FTSE 350 Banks Index climbed 18 percent in the week after the U.K. government said it will offer 2.3 billion GBP of loan guarantees to carmakers. The U.K. would follow therewith the German government which has set up a 100 bln EUR low-interest loan program to help manufactures during the credit crises. “It was looking much oversold on concern about the financial sector, and got a boost from better-performing bank stock this week” said Paul Robson, a currency strategist in London at the RBS Group Plc.
For the third day in a row the USD/JPY and EUR/JPY declined on speculation an economic slowdown which will increase the appeal of the currency as a haven. Whereas the EUR/USD mainly pressurized on presumption that the policy makers in Europe will lower the interest rates as the region’s economic growth stalls.
In Australia the performance of manufacturing index rose 2.9 points to 36.6 whereas less than 50 points signals manufacturing is shrinking. The AUD/USD fell to the lowest level in two months at 0.6304.
GBP/CHF
The currency pair has been trading in a tight bullish trend-channel the last week and opened today across its resistance at 1.6866. If the GBP/CHF could sustain this level it could be a further bullish signal. If also the upper Bollinger Band will be crossed the trend could get another boost. It seems that its next support will be the middle Bollinger Bands.
GBP/USD
At the End of September the GBP/USD started trading in a bearish trend-channel and could cross its old resistance at 1.4411 on Friday. It seems that the currency-pair tries to use its new support at 1.4411 to leave the trend-channel. A further assistance supply the MA Oscillator which rampant and crossed the zero-level.
