Good morning from wonderful Hamburg. We are looking back to a volatile FOREX week, especially in the USD pairs. Trading in currencies may be more subdued than usual due to a national holiday in Japan today. However, we hope you had a successful week and wish you a nice weekend.
Market review
The EUR rose to a monthly record high against the USD, after the Federal Reserve ramped up supply of the national currency by unexpected saying that it will start buying Treasuries. Yesterday the pair reached almost a two-month high, after touching a record high at 1.3738. It was the highest level since January 9th of 2009. The USD decreased the second week in a row against the JPY after the Fed said on March 18th its balance sheet will grow up as much as $1.15 trillion after it buys up to $300 billion of government debt. It also wants to secure more mortgage bonds. Today the EUR/USD rose to 1.3659 from 1.3638. The currency pair rose 5.4% this week, which was the biggest weekly performance since EUR’s debut in 1999. At the moment the USD/JPY rebounded a little to 94.64 from 94.54. Yesterday the pair fell over 3.5% and touched a low at 93.55, the weakest price since February 23rd. This week the Dollar-Index fell 4.9 %, the biggest weekly decline since 1985.
The AUD and NZD gained for a third week against the USD after export prices of commodities in the south pacific nations surged. The AUD/USD reached its highest level since December 1st in 2008 at 0.6944. The NZD/USD increased almost 5% after touching as high as 0.5612, which was the strongest level since January 13th.
EUR/JPY
It’s the third time since the end of October that the EUR/JPY is touching the 1.30 resistance line. In the middle of January the market started a bullish phase inside a trend channel. The MA Oscillator analysis signals further gains inside the channel. If the market breaks through the 1.30 resistance level it could continue its bullish phase.
EUR/GBP
Since the beginning of February, the EUR has been gained inside an upward trend channel against the GBP. Yesterday the market reached the 0.95 resistance line from January. If the EUR is strong enough and breaks through the 0.95 resistance level, it could gain further towards the resistance line at 0.98.
