Good morning to our FX News. We have reached the last day of the week and aside from the nice weather here in Hamburg, we were unfortunately not able to report very well financial news. Anyway, we hope this will change next week. Have a nice weekend!
Market review
The JPY rose for a second day against the EUR and the USD after explosions in Jakarta (Indonesia) and concern that U.S. commercial lender CIT Group Inc. may file for bankruptcy, spurred demand for safer assets. CIT may need as much as $6 billion to avoid bankruptcy, CreditSights Inc. analysts said. The JPY raised also against the 14 other major currencies on speculation Japanese exporters brought home their overseas earnings before the three-day weekend in Japan. The NZD/JPY fell to 1.2410 and touched a low at 1.2400 while the AUD/JPY fell 1.23 %, touching a low at 74.67.
The USD-Index climbed for the first time in three days as U.S. Treasury Secretary Timothy Geithner reassured that the Obama administration is committed to a “strong” USD and curbing record budget deficits to achieve that objective. The EUR/USD fell to 1.4100 after opening the day at 1.4148 and touching a low at 1.4094. The USD lost for a second day against the JPY after it fell to a low of 93.48. The strong JPY also gained against the EUR, recovering from big losses on Wednesday. It fell to 132.12 from 132.89 after touching a low at 131.88.
EUR/USD
Since the beginning of March, the EUR/USD has been trading along a bullish Fibonacci fan. After touching the 1.4180 resistance, the pair entered back the fan and traded near the middle line. Currently the market is trading on the 1.4180 resistance inside the Fibonacci fan. If it will break this level, it may rise towards the next resistance line at 1.4330. If not, it may come back towards the middle line of the Fibonacci fan.
CHF/JPY
Since January, the CHF has been moving along a bullish trend line against the JPY. After the market crossed finally the line, it reached its lowest level on the 84.00 support level. Now the market pulled back again and trades on the middle Bollinger band and upwards trend line. If it goes trough this two levels, it may climb towards the resistance level at 90.00.
