Market review
The GBP declined against the USD for the fourth day in a row, its longest run since April on concern that the Bank of England will expand its asset-purchase program to revive the economy. The GBP/USD fell from 1.6286 to 1.6139 at its yesterdays closing and extended its losses in the early Tokyo trading hours and slid to 1.6063. The JPY rose versus the EUR and the USD to a six rather five-week high. Released by a Japanese Report which showed that the national machinery orders unexpectedly fell three percent in May, its third decline in the last three month and the tumbling Asian stocks stoke fears that the worldwide slump will be prolonged and prompting Japanese investors to sell overseas assets and bring their money home. The USD/JPY weakened 0.48 % on Tuesday while the EUR even loss 0.91 % against the JPY. Australia’s consumer winning trust in its national economy back as a report showed today. The Index rose 9.3 % in June and climbed to its highest level since 19 months. Though the AUD/USD was driven by the uncertainty of the markets and abates demand for higher-yielding and decreased 0.23 % after a yesterday loss of 1.08 %. This week the CAD fell for the first time after crude oil, Canada’s most important export and tumbled to a six-week low.
EUR/CHF
The EUR/CHF has been trading in a bearish trend-channel and dispenses its June gains bit by bit. Having the currency pair touched for several times the upper trend-channelline, the S1 pivot point seems now to intercept the bears. Also the shrinking ADX indicator suggests that the downward trend may loss its power. It remains to be seen if the support will be strong enough to push the bears across the trend-channel.
NZD/USD
After the currency pair lost its support of the trend-channel on June 2nd, it tried to reenter the channel for two-times and failed, finally having the NZD/USD fell below its pivot point at 0.6371. This point marked a new bearish trend-line and the Momentum indicator assists the bears furthermore after falling below its zero level.
