Welcome to Varengoldbank´s Daily FX-Report. Today we will report about weak low-yielding currencies and positive news about the global economy. We hope this news will be useful and you will make successful trades.
Market review
The USD fell close to a seven-month low versus the EUR after expectations that U.S. pending home sales rose from 0.1% to 0.7%, boosting demand for higher yielding currencies like the European one. The low-yielding JPY fell also against the EUR. It reached a level close to the lowest in seven weeks on speculation gains in Asian and U.S. stocks will prompt investors to have more risk appetite. A further survey shows that U.S. consumer spending in June gained 0.3 % after a 0.3 % increase in May. Yesterday, the EUR/USD climbed for a third day and touched a high at 1.4445, which was the highest level since the end of 2008. Today, the most traded currency pair recovered a little and trades currently around 1.4395. The strong EUR also rose for a third day against the JPY. Today it touched a high at 137.31 before coming back to 137.15. That was the highest peak since June 15th.
The AUD climbed against the USD to its highest level since September on prospects the nation’s central bank RBA will signal at today’s meeting that it will refrain from cutting interest rates. Today the AUD/USD climbed for the fourth day and reached a peak at 0.8470.
GBP/JPY
On a middle-term view, the GBP/JPY has been recovered to its level from the middle of June around 162.30. Before touching this resistance, the market crossed the 160.30 resistance level, which was its highest since the end of June. The market trades currently above the upper Bollinger band, which could be a sign for an overbought market and a short signal.
CHF/JPY
As you can see, the strong CHF has gained against the JPY and reached the resistance level around 90.00. The bullish trend line may be also a significant indicator. The MACD shows still a long signal. If the market breaks both lines, the 90.00 resistance and the bullish trend line, it probably may rise towards the next resistance line around 91.50.
