Good morning from beautiful Hamburg and welcome to our Daily FX Report. Today some important decisions and reports in the USA and Europe will be announced. Especially the statement from the FED after its rate decision could be very interesting for the FX markets.
Market review
The USD/JPY rose for the first time in more than a week, driven by speculation a U.S. report will show today, that the world’s largest economy shrank at a slower pace than expected. This would reduce the demand of the JPY as a “safety-haven”. The currency pair rose in the early Tokyo trading session 0.46 percent. The JPY also weaken against all of the 16 most-active currencies. The EUR/JPY increased 0.51 percent and the GBP/JPY 0.71 percent. The U.S. consumer confidence index jumped for the most since 2005 to a five-month high of 39.2 points. A separate U.S. report showed that the decline in home prices in 20 U.S. cities slowed in February for the first time since 2007.
Today the AUD and NZD strengthened versus USD having a report showed that New Zealand’s gained more than economists expected. The exports rose 18 percent from a year earlier and the trade deficit narrowed as commodity prices increased. New Zealand’s business confidence gained for the most in more than 16 years to -3.8 from -21.2 in March. The CAD was only little changed against the USD after the U.S. consumer confidence index announced. The CAD/USD declined 0.10 percent from 1.2208 to 1.2196 yesterday.
EUR/JPY
The EUR/JPY has been trading close to a bearish trend-line since the beginning of April, now it seems that the currency pair will try to leave this trend. As you can see the movement looks like a flag, a typical chart formation. While the first flag was accomplished, the second one wasn’t full developed, after a doji signalized a trend reversal yesterday. In order of this, it crossed its resistance at 126.23 and the MA Oscillator may show further bullish potential.
EUR/AUD
The EUR/AUD traded until the 22nd of April in a bearish trend-channel. The currency pair traded in a bullish trend-channel afterwards. Now it seems for a further trendreversal. As long as the new downward trend-line wouldn’t be crossed, it may continue this trend. Additionally the EUR/AUD remains to be seen if its support at 0.8870 could be hold. The MA Oscillator suggests a positive purchaser environment.
