Good morning from Hamburg. Today are two important policy meetings inside the Euro-Zone. The ECB and the BoE are both expected to leave their interest rates unchanged at 1.00% and 0.5%. Anyway, we wish you a nice Thursday and good luck in trading signal generating.
Market review
The JPY fell close to a seven-week low versus the EUR after speculation the ECB may leave in its policy meeting today interest rates unchanged and Japanese companies could report stronger earnings, which would revive the demand for higher yielding assets. The GBP climbed almost to a nine-moth peak versus the USD before the BoE’s policy meeting, at which economists say the central bank will also leave its benchmark interest rate unchanged at 0.5 %. The weak JPY also fell versus the high-yielding AUD after the south Pacific nation unexpectedly added workers in July. The JPY fell while the Asian stocks rose, with Japan’s Nikkei 225 Stock Average adding 1.4 % and the MSCI Asia Pacific Index of regional shares, which advanced 0.5 %. The AUD/JPY climbed to 80.00 after touching a high at 80.54. The pair opened the day at 79.82. Today the EUR/JPY opened at 136.78 and touched a high at 137.38. It reached a high at 137.69 on Tuesday, which was the highest level since June 15th. Yesterday the GBP/USD reached its highest price in this year. It was October 21st 2008 as the pair was trading at 1.7000.
AUD/NZD
As you can see, the AUD/NZD has been moved along the weekly pivot points. After getting support from the Pivot S1 (W) at 1.2482, the market came up and reached the currently middle Pivot point at 1.2581. If the market goes through this line, it may rise towards the bearish trend line, the horizontal resistance around 1.2700 and the next Pivot R1 and R2 above these points.
EUR/AUD
Since the middle of July, the EUR/AUD has been trading below a downward trend line. After crossing this line, the market started to trade in a slightly climbing trend channel. If the market crosses the upper line of the trend channel, it may keep rise towards the resistance line around 1.73, which was established during the last month. If not, it may continue its trend inside the channel.
