Good morning from sunny Hamburg and welcome to Varengold’s Daily FX Report. The week began very interesting with an important hiring decision in the U.S. Anyway, we wish you a prosperous trading day.
Market review
Yesterday an unofficial report adumbrated that the Chairman of the Federal Reserve Bank, Ben Bernanke, will be nominated to a second term by U.S. President Barack Obama, according to an administration official. Bernanke’s four-year term as chairman expires on 31st of January 2010. While European industrial orders increased more than economists expected by 3.1 percent from May, a report showed yesterday, the EUR/USD declined from 1.4329 at its opening to 1.4281 at its lowest level. Also the JPY gained against the EUR after Asian stocks fell as renewed concerns that the U.S. financial crisis will linger revived demand for so-called safe-haven currencies. The EUR/JPY weakened in the early Tokyo trading hours from 135.27 to 134.23 at its lowest level. The CAD touched a two-week high against the USD after a government report showed that the nation’s retail sales increased in June five times as fast as economists forecasted. The AUD/USD decreased also on expectations that declines in Asian stocks will damped demand for higher-yielding assets. The AUD/USD fell today from 0.8389 to 0.8347.
USD/CHF
The USD/CHF has been trading in a zigzag movement since June 2009 and at the moment the Bollinger Bands are contracting which may result in a burst, as seen in the youngest history for several times. In considering of a falling –DMI indicator the ADX suggests that the bulls could use the low level to enter the market again. On the other hand there is a risk of starting a longterm downward movement, if the currency pair will extend its losses
GBP/AUD
