A beautiful weekend is coming to its end after the world’s largest cruiser, the Queen Mary 2, visited Hamburg on Saturday and yesterday one of Germany’s most important and also international bicycle tournament took place. However, we wish you a successful trading week.
Market review
The JPY go on where it had to break up last week and rose in the early Tokyo trading hours to a two-week high against the EUR as Asia-Stocks slide and investors reduce holdings of higheryielding assets. The EUR/JPY declined to 1.4139 at its lowest level. Also the USD/JPY rose on concern the U.S. banking crises may be prolonged after the U.S. regulators closed five lenders at the weekend. Japan’s economy grew for the first time in five quarters as a revival in exports and consumer spending helped the country to climb out of its worst recession after the Second World War. The GDP climbed at an annual pace of 3.7%. The GBP fell versus the USD having a U.K. report showed that British home sellers lowered asking prices by the most in eight months.
The average cost of a home fell 2.2 percent after gaining 0.6 percent in July. The Chinese commerce ministry said today in a report that the national foreign direct investments fell for the tenth month in July by 35.7% from a year earlier. The demand for the NZD strengthened as a report showed that the national services industry grew for the first time since March 2008.
EUR/JPY
Having the currency pair lost firstly its support at 132.85 at the beginning of July, the countermovement drew an S+H+S formation, which heralded a trend-reversal, though failed anew to cross its resistanceline at 138.77. Since that time the EUR/JPY has been trading in a strong bearish environment and it remains to be seen, if the support levels at 133.50 rather 132.85 could stop this trend.
GBP/CHF
On the long-term view we can see, that the GBP/CHF traded during May close to a bullish trend-line, but failed to cross its resistance-level at 1.8115. In order of this the market rebounded, lost the trend-line support and fell near to its next support at 1.7459. Also the following increase couldn’t pass the resistance and the currency pair pulled back. The MACD indicator suggests an anew test of the 1.7459 support.
