Good morning from Hamburg and welcome to our last FX report of this week. The USD rose against 15 out its 16 most active counterparts, because of the good news from the middle of the week. However, we wish you a successful trading day and a nice weekend.


Market review

The USD advanced for a third day against the EUR. This is the longest strength of gains in this month. The EUR/USD touched its lowest level at 1.4613 in the early Tokyo trading hours. The CAD dropped 1.4% versus the USD to the 1.0882 level. The GBP reached the lowest in more than three month versus the USD at 1.5918. Also against the EUR, the GBP fell to 91.93 and touched its weakest level since April 2009. In the U.S. the sales of existing homes fell last month for the first time since March. That could signalize that the housing recovery will be at a slower pace than economists expected. The purchases dropped 2.7% in August to 5.1 million, the second highest level in the last 23 month. The unemployment job claims fell to 530,000 from 551,000, this signaling that the job market is healing.

The AUD and NZD climbed against the USD and headed for weekly gains as the Group of 20 reported that they will seek to avoid a premature withdrawal of stimulus measures.


GBP/AUD

GBPAUD

Since the beginning of September, the GBP has been trading close to a bearish trend-line against the AUD. The GBP rebounded as it touched the support according to its Pivot point and could start a bullish trend. Also the RSI may indicate a recovery for a bullish trend. The Next resistance could be around 1.8806. Now it remains to be seen, if the recovery phase could continue the trend.


EUR/CAD

EURCAD

Since the middle of August, the EUR has been trading close to a bullish trend-line versus the CAD. Now, it touched the upper Bollinger Band. Three times before when it touched the upper Bollinger Band, the EUR rebounded to or under the middle Bollinger Band. In the last month, always when the MACD reached the resistance the EUR rebounded. It remains to be seen if the currency pair could continue or will break the trend.