Market review
Yesterday a report showed that the manufacturing and service industries in Europe contracted at the slowest pace since six month. As well positive news came from a U.S. report about existing home sales which rose and stayed in March near to a four-month average. This might be a sign that the housing recession has stopped to get worse. “The economic slump is slowing down only a little bit and growth won’t resume before the fourth quarter”, said Ralph Solveen, head of economic research at Commerzbank AG in Frankfurt. The GBP fell versus the USD and JPY having the “Daily Telegraph” reported that Moody’s Investors Service and Standard & Poor’s are reviewing the U.K.’s AAA credit rating in the face of the nation’s rising debt. While the EUR/USD increased on speculation German business confidence rebounded in April and tightening the signs that the worst of Europe’s economic slump may be over.
The NZD continued its losses before the New Zealand central bank decide about a rate cut on April 30th, which the most economists expect. The NZD/JPY fell from 56.33 at Monday’s opening to 54.00 at its lowest point yesterday. The CAD was able to take profit from Bank of Canada’s decision to refrain from using a quantitative easing money policy.
GBP/CAD
On the 22nd of April the GBP/CAD fell below its old support at 1.8051 which boosted the downward trend. At least at its support at 1.7896 the currency pair seems to find some purchaser and stabilized. After a short bullish-trend we saw a doji with a long packing yesterday which could be a sign for a trend-reversal. As well the MA Oscillator comes down to its zero level.
AUD/USD
The AUD/USD has been trading in a bearish trend phase and fell below its psychological important 0.7000 level. Though the currency pair recovered and rose near to its resistance line at 0.7188 and crossed simultaneous its old bearish trend-line. The MACD Indicator assists a test to climb over its resistance, which could be a further sign for an ongoing bullish trend.
