Good morning from Hamburg and welcome to a new interesting Forex 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
Since eight months, the JPY rose to the highest level against the USD and reached 89.10 amid speculation that Japanese exporters are repatriating profits before the fiscal first half ends this week. Also the JPY gained versus all its 16 major counterparts before a report tomorrow forecast to show the nations consumer prices dropped at a record pace and the jobless rate climbed to an all time high. The JPY climbed to 131.02 against the EUR. On Friday the EUR/USD gained 50 pips and closed the week at 1.4702. However, in the early Tokyo trading session the EUR gave back the gains in a low volume market and is now trading around the level at 1.46.
In the U.S., the Chairman of the Federal Reserve Ben S. Bernanke had some good news for investors. For the first time in ten years, the treasury bondholders will lose money, an unprecedented decline in the gap between the interest rate on 30th year’s mortgages and government notes, signaling an end to the worst financial crisis since the great Depression.
NZD/JPY
Since the beginning of September, the NZD has been trading in a bullish trend. Now, the NZD reached the bottom of the Bollinger Bands. Five times before, when it touched the low Bollinger Band, it recovered to or over the middle Bollinger Band line. Also the RSI may indicate a reversing trend. These signals might indicate that the last down trend could be over and we might expect a recovery.
GBP/CHF
During the past month, the GBP has been trading in a bearish trend versus the CHF. At the time, it reached the support at 1.6228 according to Pivot. The RSI indicator could indicate a bullish counter movement from the GBP, but it remains to be seen if the support line is strong enough so that the currency pair could start a bullish trend.
