The JPY fell near its lowest level versus the EUR

Daily FX Report

Good morning from sunny Hamburg. Today we’ll report about a weak JPY and USD after increases in equities and expectations of more acts against the crisis from the Federal Reserve in Washington. Anyway, we wish you a nice day and successful trades.

Market review

The JPY fell near its lowest level versus the EUR after the BoJ commented that it will step up purchases of government debt, spurring investors to seek higher-yielding assets overseas. The USD fell close to a one-month low against the EUR as Asian shares extended a rally in global equities, reducing demand for the USD as a safe haven from the financial crisis. The USD-Index decreased for a seventh day, which was the longest bearish phase in a year. One of the reasons why the USD is becoming weak, could be the expectations that the Federal Reserve will say at the end of a two-day policy meeting today, it is shifting toward more aggressive monetary expansion.

The JPY fell for a fifth trading day against the EUR to 128.36 after it touched a low at 128.82, which was the lowest level since December 29th. The EUR/USD climbed to 1.3040 from 1.2987 after touching its highest level since February 10th at 1.3072. The USD/JPY is trading near flat´in the Asia session after rising the previous four trading days over 100 pips. The USD-Index fell 1.13% this weak. It touched a low of 87.182 today, which was the lowest level since February 25th.

EUR/USD

The EUR/USD ended its bearish phase after it crossed the middle Bollinger band last week. Now the market is trading close to the 1.31 resistance level. It is also touching the upper Bollinger band which is a sign for an overbought market. According to this analysis, we could expect a pull-back towards the middle band or the 1.2450 support level.

EUR/CHF

During the past four trading days the EUR/CHF raised over 600 pips. Yesterday the pair stopped rising after it touched its one-year-resistance line at 1.5450 and the bearish trend line. Due to these huge upward movements, we could expect an overbought market which could be a short signal.

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Published On Wed, Mar 18 2009, 09:18 GMT

About this Report

Varengold Wertpapierhandelsbank AG

http://www.varengold.de/

info@varengold.de

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