Good morning from beautiful and sunny Hamburg and welcome to our Daily FX Report. Today some exciting economic data’s will be announced which may influence the FOREX market. However, we wish you a prosperous trading day.
Market review
On Monday the GBP weakened for the most in more than two month versus the USD and the most than one month against the JPY after the U.K.’s largest residential property Web site, Rightmove Plc, announced a report which showed that the national home sellers lowered asking prices in August by the biggest amount this year. “The latest house-prices news is adding to the negative outlook for sterling this week” said Ian Stannard, a foreign-exchange strategist in London at BNP Paribas SA. In contrast the homebuilder’s confidence in the United States climbed to a new one-year high at 18bps. The EUR rose versus the USD and JPY on speculation that a report may show today that the German investor confidence strengthened to the highest level in more than three years. Economists expect that the index will rise to 45 bps from 39.5 in July. The JPY declined against all of its 16 major counterparts on concern that Japanese investors took advantage of its strength to the currency. The AUD/USD and AUD/JPY increased from near the lowest level within two weeks on speculation its drop during the past two days was too excessive. The CAD touched its weakest level versus the USD this month as stocks and crude oil dropped.
GBP/JPY
The GBP/JPY has been trading in a bearish environment since last week and lost its support at 157.75. In order of this, the currency pair extended its losses and fell near to its support at 153.76. The Momentum Indicator suggests that the short recovering phase may draw to the close and if it couldn’t cross the second Fibonacci Fan at least, we should allow for a decline near to the supports at 153.76 rather 152.41 again.
USD/CAD
The USD/CAD has been trading close to a bearish trend-line and broke through its support at 1.1464. At the moment it seems that the USD/CAD aimed the trend-line again and will try to leave the bearish market. Though the DMI Indicator shows that the bullish countermovement already loose power and if the bears could assume the control again before crossing the trend-line it may boost the downward trend once again.
