Good morning from beautiful and cold Hamburg. We hope you enjoyed your weekend and you can start with good spirit in the new week. It seems that this week will be impressed by decisions of the U.S. politics. However, we wish you a successful trading week.
Market review
The JPY fell to a one-month low versus the USD and to a multi-week low against the EUR as well. The optimism about the U.S. government’s bank-rescue and economic-stimulus plans spurred demand for higher-yielding assets. Tomorrow the U.S. Senate will assemble and may pass President Barack Obama’s stimulus package. The GBP/JPY rose to the highest level since January 19th to 136.80. It is based on speculations that the lower interest rate level in comparison with Europe will help the U.K.’s economy to recover faster than the rest of the continent. In order to this the EUR/GBP declined to its lowest level since two months from 0.8754 at its opening to 0.8663 at its low. In contrast the EUR/USD recovered on Friday about 1.17 % to 1.2940 on concerns a U.S. report may show this week that the retail sales declined for the seventh month in a row.
As well the AUD/USD was impressed by the speculations of the U.S. stimulus package and increased near to a three week high. The currency pair rose on Friday from 0.6524 at its opening to 0.6802 at its high. Today, the AUD/USD recovered and touched its low at 0.6650 in early Tokyo trading. The CAD gained versus USD as stock markets rose and on speculations that the U.S. stimulus package may strengthen the commerce between both countries.
AUD/NZD
The AUD/NZD has been trading since more than three month in a bullish market and touched a half-year high. It seems that the upward trend is still intact and maybe it will test its resistance at 1.2980. If the currency pair crosses the resistance it could boost the movement and could climb over the 1.30 level.
EUR/JPY
After a huge bearish movement in December 2008 the currency pair crossed the downward trend-line and it seems to build a basement between 114.75 and 119.51. Notwithstanding the MACD indicator still shows a negative field for the EUR/JPY it seems that the currency pair could try to rise over its resistance at 119.51.
