Good morning from wonderful Hamburg and welcome to Varengold Bank’s Daily FX Comment. The Chinese economic data seems to have an influence on the Japanese currency after the JPY fell against other currencies inside the Pacific region. Anyways, we wish you a nice trading day!
Market review
The JPY fell to a two-week low versus the NZD on speculation that the Japanese economic rebound will lag behind the rest of the Asia-Pacific region. The Japanese currency fell close to its deepest level in two weeks versus the AUD after a Chinese report today showed that the regions exports increased the most in three years. China’s exports climbed 45.7 percent in the previous month from a year earlier. It was the third monthly increase and the biggest gain since February 2007. The figure was expected to increase just 38.3 percent, according to a survey. The AUD/JPY has climbed for the fourth day in a row and rose to a high at 82.50, which was close to its highest level since February 22nd. The NZD/JPY has gained to a high of 63.63, which is the highest peak since February 23rd. The GBP fell versus all the 16 major currencies before a U.K. report today, is expected to show that manufacturers increased the production at a slower pace. According to a survey, the output in U.K. expended 0.2 percent in January from December. The data for the month before showed an increase of 0.9 percent. The GBP fell for a third day against the USD after it reached a low at 1.4957.
GBP/USD
As you can see, the GBP/USD has been trading bearish from March 8th along the Fibonacci fan and broke two retracement levels. After touching the 38.20% (around 1.4940), the pair pulled up, entered the bearish Fibonacci fan, but pulled down again after it touched the middle line of the fan. This might be a sign for a continuing development along the fan, which shows in the direction of the 1.4940 support level.
USD/JPY
As you can see, the USD/JPY has been trading along a bearish trend channel with a support around 88.15, including the two resistance levels around 90.70 and 92.10. The “Williams’ Percent Range” as well as the “Stochastic Oscillator” both may signalize a continuing movement towards the support level around 88.15.
