Good morning from beautiful and cold Hamburg. More than half of the week is over and we experienced an exciting FOREX market and hopefully we could give you some support with our Daily FX Report. However, we wish you a successful trading day.
Market review
The GBP fell for the second day in a row against a basket of major currencies after the Bank of England Governor Mervyn King said that measures being taken to revive lending may not work amid U.K.’s deep recession. Additionally it was negative affected by the climbed U.K. unemployment as a report showed the highest level since a decade. U.K. policy makers will probably cut interest rates said Mr. King yesterday. The GBP/USD declined yesterday from 1.4542 on its opening to 1.4317 at its low. The EUR/USD couldn’t profit while the discussion about the effectiveness of Geithner’s bank-rescue plan based on speculations that the European industrial output slid the most in almost 23 years. For that reason the EUR/JPY extended its losses for the third day and fell from 116.83 to 115.93 at its low, yesterday.
The AUD/USD recovered on Wednesday and rose from 0.6548 to 0.6602 at its high having employers unexpectedly added fulltime workers last month as a report showed. This raised the hope that Australia’s economy may avoid a recession. Yesterday, the NZD/USD joined its bullish trend as well although New Zealand’s manufacturing industry shrank for the ninth month.
GBP/JPY
After the GBP/JPY found a basement in the middle of January, it started trading in a bullish trend and crossed even its 61.8 % Fibonacci retracement line. Though the currency pair didn’t get any support over the 61.8 % line and decreased broad to the 38.2 % line. If this support would be breached as well it could boost its bearish trend.
NZD/JPY
The NZD/JPY started trading in a strong bearish trend-channel after a short bullish trend in December. Now it seems that the currency pair recovers again after leaving the trend-channel on February 5th. If the resistance at 47.80 would be crossed it could be a sign for continuing the bearish movement. As well the MA Oscillator indicator trace slowly back to the zero level.
