After having a stormy night in Hamburg, welcome to our Daily FX Report. After Goldman Sachs quarterly report surprised the markets beneficially, J.P. Morgan’s report showed quite plainly that the crisis isn’t all over. However, we wish you a successful trading day.
Market review
Yesterday the GBP weakened against the USD as a government report showed that the U.K. house-price declines will persist until 2012. A report of the Daily Telegraph caused a lot of excitement on the markets as reported that Barclays Plc and Royal Bank of Scotland will need more capital. Due to this fact the FTSE 350 Banks Index lost more than 1.5 % and the GBP/USD fell from 1.6459 at its opening to 1.6311 at its lowest level. The European industrial orders dropped for the 10th month in a row and declined 30.1 % in May, more than economists expected. The EUR/USD closed nearly unchanged at 1.4220 while the EUR/GBP loss 0.17 %. The U.S. home prices decreased 5.6 % in May from a year earlier as job losses deterred buyers during the spring selling season when the bulk of U.S. real estate sales typically occur. The USD strengthened versus JPY on speculation that investors will buy more overseas assets in search of higher returns. Japan’s exports rose 1.1 % from a month earlier, adding signs that the recession is easing. The NZD/JPY climbed from 61.68 to 62.29 in the early Tokyo trading hours after yield advantage of three-year New Zealand government bonds over similar-dated Japanese debt widened to the most in three weeks.
XAG/USD
The Silver has been trading close to a bearish trend-line since the beginning of June, until a trend-reversal starts on July 13th. Since that time Silver has been trading close to its upward trend-line supported by a high ADX and +DMI indicator. Now it remains to see, if the resistances at 13.80 and 14.12 could be stable enough to stop the bullish movement for a longer time.
EUR/JPY
The EUR/JPY touched its lowest level at 127.07 in July following a short recovering and rose to the 76.4 % Fibonacci retracement line. Having the currency pair failed to climb sustainable over this resistance, the bears take over the control again and pushed the EUR/JPY to the 61.8% line. In considering of a contracting Momentum indicator it could continue its bearish trend.
