Good morning from sunny Hamburg and welcome to the first June Daily FX Report. Hopefully you enjoyed the weekend and you will start relaxed in a successful trading week. This week we await the next ECB rate decision and signs if the quantitative easing policy will be expand.


Market review

Today the JPY climbed against all 16 of the most-traded currency and especially versus the EUR and USD, as speculation that General Motors Corp., the world largest carmaker in former times, will now files for bankruptcy. In order of this, the demand for the JPY as a refuge from the financial crises boosted. The USD/JPY declined on Friday 1.56 % and extended its losses in the early Tokyo trading about further 0.52 %. Notwithstanding Japan’s wages fell in April for the 11th month in a row for 2.5 %, their longest losing streak in five years. The GBP posted its biggest monthly gain versus the USD in almost a quarter of a century and rose finally 1.53% to 1.6189 on Friday. After a U.K. report showed that the average cost of a home strengthened 1.2 percent and also as the consumer confidence climbed to the highest level in almost a year. The EUR/GBP got under pressure in the early Tokyo trading hour and fell to 0.8711 at its lowest level. U.S. Treasury Secretary Timothy Geithner said in a speech in Beijing today, that the U.S. administration wants to shrink its budget gap as soon as an economic recovery takes hold and reaffirmed a “goal” as a deficit about “roughly 3 percent” of the GDP. On Friday the AUD/USD rose already 2.17 % on concern the U.S. budget deficit will quadruple.


AUD/USD

AUDUSD

The currency pair has been trading in a strong bullish-trend during 2009. After the youngest rally, we saw on Friday’s closing a potentially exhausting gap. This may suggest a rebound, especially if we consider the high RSI indicator, which showed a strong overbought market. The next supports are located at its pivot point at 0.7910 and the support S1 at 0.7804.


GBP/AUD

GBPAUD

Since May 28th the GBP/AUD has been trading close to a bearish trend-line and fell thereby below its support at 2.0313. After crossing this support-line, it seems that the currency pair aimed for the next support at 2.0007. Tough the MA Oscillator crossed today its moving average and may show first bullish signs and could assist to break through the bearish trend-line.