Good morning from Hamburg and welcome to the last Daily FX Report of this week. In spite of all hopes, it seems that the global recession won’t be endure shortly and will impact the economic and the FOREX market for a while. However, we wish you a nice weekend.
Market review
The EUR extended its gains versus the USD and rose from Wednesday closing to Thursday closing around 110 pips and in the early Tokyo trading hours the EUR/USD even increased up to 1.3955, the highest level since January. The debt of the United Kingdom approaches 100 % of its gross domestic product of the country. And as a result of this, yesterday Standard & Poors changed its outlook for U.K.’s credit rating from “stable” to “negative”. S&P said in a report supplementary that the chance of a rate cut is one-in-three. For comparison the U.S. debt is only at about 45 % of the GDP. Though the GBP defended its gains against the USD and strengthened to 1.5843 from 1.5754 at its opening yesterday. The EUR/GBP, in contrast, rose on Thursday 0.26 %.
The AUD climbed against the USD to the highest level since October 2008 as investors sold the USD on speculation that the U.S. credit rating could suffered the same fate as the U.K.’s. “U.S. investors are moving money offshore”, said Richard Grace, chief currency strategist at Commonwealth Bank of Australia. The AUD/USD increased from 0.7751 at its opening to 0.7783 at its closing.
EUR/CAD
Last week the currency pair traded close to a bearish trend-line, but it broke through this line and recovered yesterday. Though for the time being, the EUR/CAD failed to climb over its resistance at 1.5840. The MACD may support a continuing bullish trend, if it will cross the zero level. This may pave the way to retest the resistance level at 1.5840.
NZD/USD
After the NZD/USD rebounded over the last week it resumed the long-term bullish trend. In order of this, the currency pair has been trading close to an upward trend-channel and broke through the important resistance levels at 0.6075 and 0.6111, which now serve as a support line. The MA Oscillator initiates further bullish signs by crossing the Moving Average line.
