The XAU has been trading in a bullish trend

Daily FX Report

Good morning from Hamburg and welcome to the Daily FX Report. Today we will report about the US market and some other important details about some currency pairs. Anyway, we wish you a successful trading day.

Market review

The EUR climbed for the first time in six days versus the JPY to 131.45 as the Asian stocks rebounded and before a report forecast to show that the European confidence in the economy improved. The JPY declined to 90.01 against the USD as the Japanese Trade Minister Masayuki Naoshima mentioned a stronger JPY will hurt exporters and stoking speculation that Japan may intervene in currency market. The USD climbed and touched the 1.4606 level versus the EUR.

Speculations that the Federal Reserve may keep its benchmark interest rate at a record low for too long and that increases the pressure on the USD. Federal Reserve Chairman Ben. S. Bernanke and many other policy makers may hold off increasing rates until the mid-term Congressional elections in November 2010 is over, as inflation stays within the central bank`s target rate. In Europe said European Central Bank President Jean-Claude Trichet, that the USD is extremely important for the world economy and it`s too early for the ECB to unwind emergency stimulus measures. He mentioned that only a strong USD will support a recovery from the recession.

USD/CHF

Since the middle of August, the USD has been trading in bearish trend channel. When it reached or crossed the upper line from the trend channel, the currency pair rebounded always. Now it reached the upper line of the trend channel again and it seems that the USD can`t cross it. Also the RSI may indicate a weakening trend.

XAU/USD

Since the beginning of September, the XAU has been trading in a bullish trend. Now, it reached the bottom of the Bollinger Bands. Four times before, when the XAU touched the low Bollinger Band and was able to recover close to or over the middle Bollinger Band line and it seems that support line at 984.94 is strong enough. Also a crossing MACD could indicate, that the last down trend is over and we might expect a recovery.

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Published On Tue, Sep 29 2009, 09:06 GMT

About this Report

Varengold Wertpapierhandelsbank AG

http://www.varengold.de/

info@varengold.de

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