Good morning from rainy Hamburg and welcome to our last Daily FX Report for this week. The FOREX market presents itself very volatile, just as the last week. It seems that every new economic data or news influenced the trend between depression and hope. However, we wish you a nice weekend.
Market review
The GBP rose against the EUR and the USD after the Bank of England decided against extending its asset-purchase program and left the key interest rate at an all-time low at 50bps. The GBP/USD rose from 1.6072 to 1.6380 at its highest level, the biggest jump in almost three weeks and the EUR/GBP weakened 0.66 %. The Group of Eight leader avoided a discussion over the USD’s role as the world reserve currency as they agreed not to devalue their own currencies to promote their exports. The U.S. employment market strengthened surprisingly strong as shown by an unexpected decline of the initial jobless claims to 565,000 from 617,000 a week earlier, the lowest level since January. Today in Japan a report showed that the national producer prices fell to a record pace in June by 6.6 % after a revised sliding of 5.5 % in May. The JPY gained versus the GBP and the EUR 0.38 % rather 0.33 % in the early Tokyo trading hours, while the AUD/JPY and NZD/JPY rose on speculation that the recent losses had been excessive. The CAD increased against the USD from a multi-month low at 1.1681 to 1.1548 at its lowest level as advanced commodities and stocks boosted investor demand for commoditylinked currencies.
USD/CHF
The USD/CHF keeps on trading in a zigzag movement. After the currency pair touched during its youngest bearish movement the S1 pivot point, it rebounded and aimed its pivot point at 1.0828 again. The Momentum indicator shows also a sign for a further recovering phase. If the Momentum could cross its zero level, it may boost the bulls.
GBP/USD
Since the middle of June, the currency pair traded in a small horizontal range, but the bears prevailed and due to this fact the GBP/USD fell near to the important support level at 1.5985 on 8th July. Since that time it recovered and breached the third and second Fibonacci fans. Also the ADX suggests a well supported bullish trend and may assist to extend the trend.
