Good morning from beautiful and cold Hamburg. A further exciting week is draw to a close and we’ll have a look on yesterday’s events which impressed the FOREX market. We wish you a successful trading day and a nice weekend.
Market review
The JPY fell versus EUR and USD on speculation that Asian stock gains may revive investors’ appetite for riskier assets and reducing demand for the Japanese currency as a haven. The USD got further assistance by the U.S. Commerce Department which reported that the retail and food services sales rose unexpectedly by 1 percent in January and broke therewith a long string of monthly declines. Also the U.S. Senate and House reached an agreement for the economic stimulus package. While the EUR/USD declined from 1.2906 to 1.2722 at its low yesterday. In early Tokyo trading the currency pair recovered and rose to 1.2942 at its high. The USD/JPY on the contrary extended its gains and climbed up to 91.27 in the morning. The GBP was further bonded on apprehension that U.K. economic slump will be deeper than previously expected and extended its losses against the USD for the third day.
In Australia the Senate approved a $28 bln economic stimulus package which could help to avoid a recession and in order of this, the AUD/NZD rose about 0.70 percent to 1.2569 at its high. The NZD profits on speculation that gains in U.S. equities allure investors to purchase higher-yielding assets.
EUR/USD
The EUR/USD quit its strong bearish movement on February 9th having the trend stopped at 1.2883. It seems that the currency try to build a new basement as long as the support line at 1.2883 could assist. If the EUR/USD breaches its resistance at 1.3093 it could boost the movement and maybe start a bullish trend.
CHF/JPY
Having the CHF/JPY has been trading in a bearish trend-channel it crossed the trend with the beginning of February. The MACD indicator roses a few and will probably show a further recovering. A first resistance will be potentially at 79.35 and if the currency pair could cross this level it could be boost the bullish movement and try to test the next resistance at 80.23
