Good morning from beautiful Hamburg and welcome to our Daily FX Report. Around the World many of the leading companies satisfy the markets with very well quarterly figures and tighten the hope that the global recession is easing. Anyway, we wish you a successful trading day.
Market review
After the EUR/USD climbed about 0.90 % to 1.4249 at its highest level on Monday, the 16-nation currencies declined against the USD in the early Tokyo trading hours, due to the fact that Ben Bernanke, Federal Reserve Chairman, said that the central bank will eventually need to “tighten monetary policy” to prevent the emergence of inflation. The index of U.S. leading indicators rose for the third consecutive month in June, the first time since 2004. The outlook for the next three to six months strengthened 0.7 %. In spite of these good economic indicators for the U.S. economy the GBP/USD increased 1.37 % to a two-week high and also the CAD gained versus the USD 0.84 %. The GBP benefits from advancing stock markets and a survey showed that the demand in the U.K. housing markets picked up, which may signaling that the global recession may be easing. The average cost of a British home increased 0.6 % this month, after contracting 0.4 % in June.
Having the AUD/USD surged yesterday from 0.7989 to 0.8176 at its highest level, it rebounded in the early Tokyo trading hours after Ben Bernanke said that the U.S. central bank will likely need to maintain an accommodative policy for an extended period.
EUR/AUD
In 2009 the EUR/AUD has been trading in a bearish environment. Due to this fact, the currency pair broke through its first important support at 1.8007 and fell down to its long-term support around 1.7200. At this level the bulls entered the market and pushed the EUR/AUD temporarily above the second Fibonacci fan. Nevertheless the Momentum indicator, couldn’t cross its MA and could suggest further bearish movements.
USD/CAD
The USD/CAD has been trading close to a bearish trend-line and notwithstanding this line breached in July, the currency pair failed to stop the bears. Quite the contrary the growing DMI and ADX may suggest that the downward movement could be enforced. On the other hand side, its support level at 1.0815 could mark a vantage point for the bulls to enter the market.
