Good morning from Hamburg and welcome to our daily FX Report. Unfortunately we have to report again about record economic slowdowns in some countries. But the best news comes from Germany, even the very nice spring weather. Anyway, we wish you a successful trading week.
Market review
The JPY and the USD gained against higher-yielding currencies on expectations the global recession will deepen, which spurred investors to seek both currencies as a safe haven. The Japanese currency increased for the fifth time in six days versus the EUR after a report this week may show China’s economy slowed down to the lowest level in almost a decade. In addition Singapore said its economy may shrink the most in its 44-year history. The EUR/JPY fell to 133.11 after it reached a low at 132.65. The NZD/JPY dipped to 58.97 after it touched a day-low at 58.69 while the CHF/JPY declined to 88.00. The strong USD performed gains against the AUD and reached a high of 0.7271 before it pulled back to 0.7288.
Yesterday the EUR/USD rose for the second day on concerns a German report will show that wholesale prices fell for a series of eight months, tomorrow. The weak EUR performed losses against a few other currencies after investors still looking forward for signals from the ECB. Council member Axel Weber will speak here in Hamburg tomorrow and Erkki Liikanen will deliver a speech in Helsinki the following day. However the EUR/USD rose 1.37% to 1.3368 before it pulled back to 1.3330.
CHF/JPY
During the past three months, the CHF/JPY has been moved in a bullish trend channel. After the pair crossed the important 76.4% Fibonacci resistance level, it reached a peak at the 100% level of 90. This level is additionally an important psychologically resistance. If the market crosses the 100% Fibonacci resistance line, it may continue its upward trend towards the next Fibonacci profit target at 93.50.
GBP/USD
Since the end of February the GBP started a gain phase in a bullish trend-channel against the USD. After the market broke the bearish trend line in March it performed further gains and touched the 1.50 resistance level. If the currency pair is strong enough to cross the 1.50 resistance level, it could continue its bullish trend towards the next feasible resistance lines.
