Good morning from sunny and warm Hamburg. This Friday we will give you a weekly “Market review” after the low-yielding JPY and USD made record weekly lows against most currencies. Anyways, we hope you had a great week and wish you a nice weekend.
Market review
The USD fell to five-week low against a basket of major currencies ahead of a report today that is expected to show that the U.S cut fewer jobs as the past months. The U.S. lost 325,000 jobs in July, which was slower than the reduction of 467,000 in the prior month, according to a survey. The number of Americans filing claims for jobless benefits decreased by 38,000 to 550,000 in the week ended August 1st, the Labor Department said yesterday. The low-yielding JPY also dipped against a lot of currencies. It posed for a weekly loss against 14 of its 16 major counterparts on signs the global recession is abating, which decreases demand for safe-haven currencies. The USD-Index fell for a fifth week after it touched a low at 77.428, which was the lowest level this year. At the beginning of October 2008 the Index traded around this level. The USD fell for a forth week against the EUR after it touched a low at 1.4447.
The AUD is set to rise a fourth week against the USD and the JPY after the RBA said, it may increase interest rates. The AUD reached its highest level this year against the JPY after it touched a high at 80.83. It also touched its highest level in 2009 against the USD as it touched a high at 0.8471 this week.
CAD/JPY
Since the end of last month, the CAD/JPY has been moving inside a bullish trend channel. The currency pair has already touched its resistance level around 89.50 from the middle of June. Currently the market is trading on the lower line of the channel. If it breaks trough this line, it could make further losses. If it pulls back and cross the resistance, it may continue its bullish trend.
EUR/CAD
On Tuesday the EUR/CAD has entered the bearish Fibonacci fan inside a bullish trend channel. It is trading near the middle Fibonacci line and the lower line of the channel. It depends which line will get crossed. If it crosses the lower line of the channel, it may continue its trend inside the fan. If it breaks through the middle fan-line, it could continue its trend inside the channel on the way towards the upper line of the fan.
