Good morning from wonderful Hamburg and welcome to our Daily FX Comment. The EUR continued its downtrend versus it most traded counterparts. Also the AUD dropped as reports showed that the gross domestic expectation increased at a half the pace as forecasted. Furthermore we will report about the strong GBP. We wish you much luck today.
Market Review – Fundamental Perspective
The EUR extended its downtrend versus the USD and traded near an 11 week low on concern that Europe`s financial crisis will spread to other countries such as Portugal and Spain. That is snapping the demand for the region`s assets. The EUR was close to the weakest since the 15th of September against the JPY after the Wall Street Journal said that European policy makers are planning a more rigorous round of stress tests for banks. The USD approaches to a two month high against the JPY and could keep its high level on speculation a private report will show that U.S. employment rose by the most in almost three years. The EUR traded around 1.2987, earlier it touched 1.2969, which is the highest level for the USD since the middle of September. The JPY was at 108.63 against the EUR, before trading at 108.35, also the weakest level since the 15th of September. The USD bought 83.63 JPY.
Furthermore the GBP advanced to its strongest level in 10 weeks versus the EUR as concern that the common-currency area`s debt crisis will worsen. That is spurring investors to buy British assets as they sought safer alternatives. The GBP rose for the second consecutive day and posted its biggest monthly gain since January 2009 versus the EUR. The GBP increased as much as 0.6 percent to 0.8375 against the EUR. Since the end of October, the EUR has lost more over 3.6 percent. The USD traded little unchanged versus the GBP at 1.5569.
The AUD fell for a fifth day, the longest losing streak since August, after a report showed that the nation`s gross domestic product in the third quarter increased at half the pace economists expected. The AUD slid to the lowest level in 10 weeks as the report tempered speculation that the Reserve Bank of Australia will raise interest rates to cool inflation. The AUD lost 0.5 percent to 0.9544 against the USD. The NZD declined 0.2 percent to 0.7411 against the USD.
Daily Technical Analysis - Our Focus Currencies for Today
AUD/NZD (4 Hour)
Since the end of October, the currency pair has started a bearish phase. After touching its lowest level in November, the AUD came back and crossed all of its Fan`s. It remains to be seen if the prices could break the next hurdle around 1.2922. Then there might be more room for further gains.
Intraday Support & Resistance (4 Hour)
GBP/NZD (4 Hour)
At the beginning of November, the GBP has been trading inside a bullish pitchfork against the NZD. Currently, the price moves in the lower channel. The Moving Average could be a sign for a continuing bullish trend, but it remains to be seen if the GBP could reach the upper channel. Next resistance could be around 2.1093.
Intraday Support & Resistance (4 Hour)
No comments:
Post a Comment