Good morning from Hamburg and welcome to our Daily FX Report on the last day of August 2009. We hope you were able to relax and enjoy your weekend and you are ready to start a successful trading week. We may have a look on the JPY, while it got a bit volatile against the major currencies.
Market review
The JPY climbed against all 16 major currencies, after the opposition Democratic Party of Japan swept to power in the nation’s general elections yesterday. It spurred optimism that the new Japanese government may stimulate the economy. The EUR fell against the JPY for a fifth day before a German report tomorrow, which is expected to show that retail sales rose in Europe’s largest economy for the first time in three months. The EUR traded close to a 12-week high against the GBP while an index of executive and consumer sentiment in the 16-nation region climbed to 80.6, which was the highest level since October, from 76 in July, the European Commission in Brussels said on Friday.
The EUR fell to 132.44 against the JPY after it touched a low at 132.19, which is the lowest level since August 19th. The USD/JPY fell 0.78 percent and touched a low at 92.55, which was the lowest price since July 13th. The EUR/USD is still trading in a sideway phase around 1.4280 with a resistance around 1.44. The EUR/GBP fell on Friday for the first time since August 18th while it climbed repeatedly today, trading around 0.8790.
AUD/CHF
Since the beginning of July, the AUD/CHF has been moving inside Fibonacci retracement and fan lines. After it touched the lower line of the fan for the second time, it pulled back to 23.6% at 0.8933 and tried to break this level. The market is currently trading around 0.89 and we maybe could see further gains, if it breaks the 23.6% Fibonacci retracement line at 0.8933.
NZD/USD
Since March, the NZD/USD has been moving along a bullish trend line. After the market touched the upward resistance line several times, it reached finally its highest level since the end of September, which could be a resistance level. If the market breaks this resistance, which stays at 0.6890, it could rise further along the bullish trend line.
