Good morning from Hamburg and welcome to a new interesting week. We expect a lot of information, which could have an important influence on the FOREX market. However, we wish you a successful trading week.
Market review
The EUR climbed to the highest level in this year versus the USD. It touched 1.4767. Against the JPY, the USD recovered from the lowest level this year 90.13 and rose 0.6% to 91.29. The JPY dropped 1.6% to 134.33 and versus the EUR, too. The GBP fell against all of its 16 most traded currency pairs. The GBP slid versus the EUR 3.4% and touching 0.9057, the weakest level since April. The biggest mortgage lender of the U.K, the Lloyds Banking Group Plc, said it may pull out of the government`s asset-insurance as the Financial Times reported that the bank`s capital position was too weak. Against the USD, the GBP depreciated 2.3% and slipped 1.7% versus the JPY.
The cost of three-month loans in USD between banks fell to a record low of 0.289%. The London interbank offered rate, the Libor, is lower than that of the CHF and the JPY and making the USD the cheapest funding currency. The Fed will keep the rate for loans in a range of zero to 0.25%.
USD/JPY
Since August, the USD has been trading in a bearish trend channel against the JPY. Always when it touched the upper line from the trend channel, the price rebounded. After touching its support at 90.02 the USD recovered and rose to its resistance level around 91.55. Two times before, it couldn’t break through this resistance and a crossing MACD may indicate that the currency pair will fail again to rise above the resistance level.
USD/CAD
Since the beginning of September, the USD/CAD has been trading in a bearish trendchannel. Three times before, the USD tried to break out of the trend channel but failed to cross the resistance. Also the MA Oscillator denote a bearish trend, beccause the signal line is broken by the top and may boost the downward movement within the trendchannel. The next support could be around 1.0547 according Pivot.
