Market review
The GBP rebounded from its lowest level since three weeks versus the USD after Europe’s second-largest retailer, Tesco Plc, announced strong sales data. This aroused hopes that the U.K. economic slump may ease. Last month the U.K. inflation rate dropped to the lowest level in one year and as well the retail price index annual gauge dropped for the first time since 1960. The GBP/USD increased 0.92 % from 1.4539 to 1.4677. Also the EUR declined against the GBP although the German investor confidence rose to the highest level in almost two years in April from -2 points to +13 points. Yesterday the International Monetary Fund (IMF) published a report whereupon the finance crisis will breed losses all in all over $4.1 trillion until the end of 2010.
In Zurich, the Swiss central bank disclosed that the Bank bought 4.52 billion euros in the first quarter of 2009 to weaken the CHF versus the EUR. Since the beginning of March the EUR/CHF has gained more than 2 %. Yesterday the AUD and NZD climbed more than 2 % against the USD after U.S. Treasury Secretary Timothy Geithner said that the “vast majority” of U.S. banks have enough capital. Therewith he revived investors’ appetite for risk.
EUR/GBP
The EUR/GBP has been trading in a bearish trend-channel, since the end of March. On Monday the currency pair accomplished the jump out of the trend-channel for the first time. The Bollinger Bands indicated a trendreversal. But the short bullish phase already broke yesterday. Now it remains to be seen if the support at 0.8794 will be strong enough to stop the long-term downward-trend.
NZD/USD
The currency pair has been trading close to a bearish trend-line, since March 13th. The NZD/USD touched its support point at 0.5530 and rose afterwards near to its barrier at 0.5650. At this level the bearish trend-line is crossing and if this line could cross, it is maybe a signal for a further bullish movement. Though the Momentum Indicator crossed its MA and fell down to the zero level and may assist the bearish trend.
