Good morning from sunny Hamburg und welcome to our newest Daily FX Report. The Forex market keeps on moving very volatile und driven by some important economic data’s. However, we wish you a successful trading day.
Market review
Yesterday the National Statistic Office in London reported that U.K.’s inflation rate unexpectedly held at 1.8 percent this month, which giving the Bank of England less reason to keep the interest rates at a record low. In order of this, the U.K. gilts declined and the GBP/USD rose from 1.6348 at its opening to 1.6587 at its highest level. In the early Tokyo trading hours the JPY strengthened versus the USD and EUR as Japanese equities fell, prompting investors to reduce holdings of higher-yielding assets. The EUR/JPY weakened from 133.84 at its opening to 133.50. The German investor confidence jumped to its highest level in more than three years after a national government stimulus packages and rising exports pulled Europe’s largest economy out of the recession. The index climbed to 56.1bps in August after 39.5bps in July. Yesterday the USD/CHF declined from 1.0780 at its opening to 1.0757 at its closing. The U.S. wholesale prices fell 0.9 percent, more than forecasted. The AUD/USD gained after the national Minister for Resources and Energy Martin Fergusen said that an accord between Exxon Mobil Corp. and PetroChina Co. to supplying China with Natural Gas from Australia was endowed with a record of 42bln USD.
GBP/CAD
The currency pair traded since the beginning of July close to a bearish trendline until the bulls helped to cross the trendline this week. Now it seems that the GBP/CAD build above its new support at 1.8209 a basement. If this support will be strong enough it could boost the GBP/CAD near to its next resistance at 1.8340. The MA Oscillator may also support the bulls if the support will hold.
EUR/AUD
Having the EUR/AUD touched its highest level in July the bears entered the market and led the currency pair down near the 1.6800 level. From this multi-month low a short recovery phase crossed the lower Fibonacci fan and is now close the weekly pivot point. It remains to be seen, if the EUR/AUD could rose sustainable above the lower Fibonacci fan, supported by an increasing MA Oscillator.
