Good morning from Hamburg and welcome. We hope you had a great weekend and you are ready to start into the new week with a volatile FOREX market, especially the JPY crosses. However we wish you a nice start in the new week.
Market review
After the speculation that the global recession is easing encouraged investors to buy higheryielding assets, the JPY slid against the EUR and the AUD. The JPY fell almost 3 percent against the AUD and touched its lowest point at 73.56, which was the lowest level since October 14th. The EUR/JPY rose 0.7%, after touching a day-high at 132.88. It is the 5th day that the EUR is gaining against the JPY. The weak JPY also fell against the NZD. The Japanese currency reached its low at 57.24, which is the weakest level since April 17th. The volume of currency trading is likely to be less than usual because of Japan’s “Golden Week” holiday from today to May 6th.
The USD fell to a three week-low versus the EUR before a German report today may show that retail sales in Germany, the largest economy in Europe, rebounded in March. That may be the reason why the demand fell for the USD as a refuge from the worldwide slump. According to a survey Germany’s Federal Statistics Office in Wiesbaden may report that retail sales, adjusted for inflation and seasonal swings, increased 0.2 percent in March from February when sales fell 0.2 percent. The EUR/USD rose 0.4 percent and touched a high at 1.3347.
CHF/JPY
After touching the pivot point at 82.67, the CHF/JPY started a strong bullish phase. As you can see the market already broke through a lot of other pivot point including the upper line of the bearish trend channel. These all might be a sign for further rising movements towards the next pivot point resistance of 89.04.
EUR/AUD
Since the beginning of March the EUR/AUD has been trading inside a downward trend channel. After it decreased below its 1.85 support line, it fell further and started to pull over the 1.80 support level. This physiological and technical support line might be an important indicator for the decision of the market. If it will be broken the pair might continue its bearish trend in the channel.
