Good morning from beautiful Hamburg and welcome to our Daily FX Report. The USD weakened against all of its major counterparts and the GBP could recover versus the EUR. However, we wish you a successful trading day.
Market review
The EUR may extend its rally to a five week high against the JPY to 137.50, while the USD versus all of its major counterparts weakened. Since September last year, the USD reached its lowest level against the EUR at 1.4842. The CHF reached its strongest level at 1.0216 and advanced its gains about 1% versus the USD, the highest level since July 2008.
In the US, the jobless rate rose to 9.7%, the highest level in a quarter century. Since the beginning of the recession, the employers have eliminated almost 7 million jobs. The Federal Reserve Bank will keep its target rate for overnight loans at a range of zero to 0.25%.
In Europe, the GBP rose against the EUR and rebounded from its five-month low after the Goldman Sachs Group recommended selling the currency pair. Also the GBP/USD rose the first time within the last four days as stocks rallied around the world on evidence that the global economic recovery is accelerating.
EUR/USD
Since September, the EUR has been trading close to a bullish trend-line against the USD. It touched the pivot resistance at 1.4814, but couldn`t cross it. The RSI shows an overbought market and may indicate a bearish trend-reversal. The next support could be at 1.4761 according to its Pivot point. Now it remains to be seen, if the recovery phase would be broadening or if the bulls could push the EUR above the trend-line again.
NZD/USD
Since the beginning of September, the NZD has been trading in a bullish trend channel versus the USD. It always rebounded when it touched the upper line and dropped at least again. Also it seems that the MACD may indicate a continued bearish trend, but it remains to be seen if the currency pair could dropped to the bottom trend channel line like before.
