Good morning from beautiful Hamburg welcome to our Daily FX Report. While the stock markets around the world rose and the companies make more money again, the incertitude is back on the FOREX markets. However, we wish you a successful trading day.
Market review
The JPY extended its gains versus all 16-major currencies on concern that the financial will delay a recovery in the global economy, according to an interview with the White House budget Chief Peter Orszag. He said that the U.S. unemployment will surge to 10 percent this year and the budget deficit will be $1.5tln next year, both are higher than previous President Obama’s administration forecasts. The USD/JPY declined from 94.56 at its opening to 93.79 at its lowest level and also the GBP/JPY declined by 0.8 percent on Tuesday. Japan’s exports weakened for the tenth month in a row. The shipments abroad tumbled 36.5 percent from a year earlier. Yesterday an U.S. report showed that the U.S. home prices fell in the second quarter at a slower pace as in the first one. The prices decreased 6.1 percent from a year earlier after 7.1 percent in the first quarter 2009. The EUR/USD closed little changed at 1.4296 from its opening at 1.4304. Economists expect the fifth monthly gain of the German business confidence from 87.3bps to 89.0bps which a report may show today. The USD/CAD recovered from its three-week low as crude oil weakened and a central bank official said is strength to growth.
GBP/USD
Since the beginning of August the GBP/USD has been trading in a bearish environment. At least the support at 1.6269 averts the GBP for even stronger losses. After the countermovement failed to cross the last Fibonacci Fan, it seems that the bears take control again which may result in a further test of the support, especially in considering of the strong –DMI and a rising ADX indicator.
AUD/JPY
In July a V-formation heralded a trend-reversal and in order of this, the AUD/JPY traded close to a bullish trend-line up to 82.01. At this high level the bears entered the marked again and pulled the currency pair back near to its support at 76.94. The downward movement may assist by a declining MA Oscillator and suggest a further test on the downside.
