Good morning from Hamburg to all Forex traders worldwide. Please enjoy the market review.
Market review
Today New Zealand’s central bank kept its benchmark interest rate unchanged at 2.5 % for a second month as a housing recovery and rising business confidence signals an end of the recession. But they left the door open to further cuts while warning that a strong currency is increasing the risk for economic recovery. Therefore, the NZD/USD fell more than 1.0 % to 0.6505 in the Asia session.
On Wednesday the USD was able to gain against most major currencies after China’s central bank said it will stick to a loose monetary policy to consolidate its economic growth. Comments from President Barack Obama gave the greenback further support; he said that the government “may be seeing the beginning of the end of the recession.” The EUR/USD decreased 0.83 % and hit a session low at 1.4008 and the USD also gained 1.1 % against the CHF.
Yesterday the JPY fell broadly after the vice governor of Chinese central bank said he will use market tools instead of quota-style controls to ensure credit growth appropriate. The Japan’s currency declined for the first time in three days against the EUR after a government report showed Japanese manufacturers boosted production for a fourth month. Japan’s production increased 2.4 % from May the Trade Ministry said today. The results reduced the demand for safer assets and strained the JPY.
GBP/USD
In February the GBP/USD started a bullish trend. Now we could notice a slow down of the movement, because of the narrowing Bollinger Bands in July. Additionally, we could see a dojo formation in the circle of the chart. Both signals could indicate a larger price movement soon. According to the MA oscillator the pair could decrease. If the GBP cross the trend line in the next days, there could be more space for further losses.
EUR/CHF
In July the EUR/CHF is trading along an upward trend line. It is noticeable that the EUR was able to cross the weekly Pivot resistance (R1) three weeks in a row. However, the currency pair rebounded afterwards after touching the upper regression level. Therefore, the pair could rebound for the third time near of the average line, because also the RSI is close to show maybe an overbought signal of the market.
