Good morning from beautiful Hamburg and welcome to our Daily FX Report. Today a wealth of important U.S. and European economic data come up and may have influence on the FOREX market. However, we wish you a prosperous trading day.
Market review
The EUR weakened against the USD to its lowest level this week after a U.S. report showed that purchases of new home sales climbed more than forecasted. Home sales increased 9.6 percent in July, the most within four years. Another U.S. report indicated bookings for durable goods climbed 4.9 percent, the most since July 2007. This reinforcing signs that the World’s largest economy will rebound from the worst recession since 1930s. The EUR/USD fell from 1.4297 at its opening to 1.4207 at its lowest level. Today in the early Tokyo trading session the JPY strengthened versus all of its 16 most-traded counterparts as investor’s risk appetite fell before a report may show that Japan’s unemployment rate matched at a record high. The GBP/JPY extended its yesterday’s losses and declined 0.70 percent today. New Zealand posted its smallest annual trade deficit in six years in July. Nevertheless the NZD/USD trades currently 0.35 percent below its yesterday’s closing. Also the AUD slid versus the USD as crude oil fell, one of Australia’s most important exports.
EUR/GBP
Having the EUR/GBP traded in a trend-less zigzag movement during July it broke through its long-term resistance at 0.8695 and began trading close to a strong bullish trend-line. At the moment it seems that the currency pair is in a short recovery near the first pivot resistance at 0.8793. Though the Momentum indicator starts rising again and may suggests that at least at the trend-line the bulls will be back and boost the trend.
CHF/JPY
After the CHF/JPY touched a multi-month high on the 7th of August it pulled back and broke at least through its important resistance at the 61.8% Fibonacci line. During the last three times, the currency pair boosted its downward movement after losing this support. Also the MACD indicator continuing its bearish movement after it crossed its zero level.
