Good morning from Hamburg and welcome to our daily FX Report. The GBP could recover against the EUR and the USD after the publication of important economic data. However, we wish you a good and successful trading day.
Market review
The GBP rose to the most against the EUR since the beginning of June to 0.9138 after an index of the U.K. retail sales climbed to the highest level in five months and a report showed that the economy shrank less than previously estimated. Also the GBP rose versus the USD to 1.5928. The JPY dropped versus the USD to a level at 89.77. The GBP/JPY rose also 1.1 % to 143.76.
At the same time World Bank President Robert Zoellick said that the U.S. should have a strong USD, especially if it takes steps needed to rein in budget deficits and bolster long term financial stability. Furthermore, he said that China has played a very constructive role in helping the world emerge from recession. He expects that Asia get out of the crisis quicker than other regions, posing a dilemma to central banks in the region over when raising borrowing costs in order to tame inflation.
EUR/CHF
Since September, the EUR has lost against the CHF. It started a bearish phase along a downward Andrews Pitchfork channel. Currently, the market trades inside the lower channel and reached the support at 1.5084, but the support line was strong enough to pull back the EUR in the lower channel. Now, it approaches to the upper channel. At the last time as the EUR reached the lower line of the fork, it recovered into the upper channel. This might be a signal for a successful pull back.
EUR/AUD
Since the middle of August, the EUR has been trading in a bearish trend. Now, it reached the bottom of the Bollinger Bands. Three times before, when it touched the low Bollinger Band, the EUR was able to recover over the middle Bollinger Band. Also the RSI could indicate a rising trend and we may expect a recovery from this currency pair.
