Good morning from Hamburg. It gets more and more difficult to appraise the FX market after there comes good and bad news from each country around the world. However, we hope you have a similar sunny weather like in Hamburg and are enjoying this Thursday morning.
Market review
The JPY and the USD rose versus the EUR after CIT Group Inc., which is a bank holding company providing commercial financing and leasing products, said it probably won’t receive a federal bailout. That news spurred speculation the U.S. commercial lender will file for bankruptcy. On concern the U.S. banking-industry crises will be prolonged, the low-yielding currencies JPY gained against 15 of the 16 major currencies. Stock gains inside the Pacific zone could be another reason for the positive JPY performance. The MSCI Asia-Pacific Index of regional shares gained 1.7 %. The USD-Index recovered from near a five-week low after the S&P 500 performed a 3 % climb yesterday. The USD-Index climbed to 79.547 after it reached a low at 79.291, which was lowest level since June 11th.
The EUR/USD fell to 1.4070 after opening the day at 1.4107. Yesterday it climbed 140 pips and touched a high at 1.4135, which was the highest level since July 2nd. The EUR/JPY is rebounding from yesterday gains. It fell 0.61 % after rising over 230 pips yesterday. The strong JPY also rose against the USD. It trades currently at 93.90 after opening at 94.22.
NZD/JPY
Since the beginning of February, the NZD/JPY has been moving along a bullish Fibonacci fan. After entering the fan and touching the middle line, the currency pair turned back and crossed the 60.37 resistance line. This could be a sign for further gains towards the possible resistance levels at 62.74 and 63.33.
GBP/CHF
As you can see, the GBP/CHF has leaved the bullish trend channel, in which it traded from May to the middle of June. Now the market pulled already back from its support line at 1.7484 and is trading on the middle of the Bollinger band. If the market reenters the channel, it may rise towards the upper Bollinger band. If not, it could turn back towards the support line at 1.7287.
