Good morning from beautiful Hamburg and welcome to the last Daily FX Report before the weekend. After yesterday a lot of important economic data were announced we’ll go today in the second round and look forward for further trend-setting data. We wish you a nice weekend.
Market review
The EUR/GBP gained for the eight day, its longest winning streak since March 2005, on concern a European report may show today that the confidence in economic outlook increased in August to the highest level within 10 months. In Germany inflation rate rose to zero, while economists expected a 0.4% decline. The EUR rose against the GBP 0.41% and versus the USD 0.60% on Thursday. “The euro-zone economies look like they’re starting to recover”, said Masanobu Ishikawa, general manager of foreign exchange at Japan’s largest currency broker. The U.S. gross domestic product shrank with 1% annual rate at a slower pace than economists expected, a Commerce Department report showed yesterday. Today the Japan’s statistics bureau announced that the national unemployment rate climbed to a new all-time high at 5.7 percent in July and also the consumer prices fell at a record pace by 2.2%. Thereupon the USD/JPY rose in the early Tokyo trading session 0.20% and the GBP/JPY strengthened 0.11%. The USD weakened against the CAD by the most within two weeks as crude oil erased earlier losses which boosted the demand for so called commodity driven currencies.
GBP/JPY
Since the beginning of August the GBP/JPY has been trading close to a downward trendline and fell near to its support at 150.73. At this low level the Bollinger Bands began contracting which indicated the last two times an accelerated bearish trend. But now the RSI is on a relative low level as well in contrast of the last two contracting times, which may suggest a trend reversal.
EUR/CHF
After the currency pair traded from July till middle of August close to a bullish trendline, it rebounded and plunged down to its support at 1.5152. Henceforward the bulls entered the market again though failed to cross the bearish trend-line and pulled back towards the support level. If the EUR/CHF could build a basement above the 1.5152 level it might be the starting point for a further attempt to brakes through the bearish trend.
