Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Jul 24 08 07:20 GMT |

Good morning from wonderful Hamburg and welcome to Varengold Bank's Daily FX Report. The weather looks great in Hamburg and hopefully the summer will come back with some warm summer days. Some interesting business data will come out today in the Euro zone that could move the markets, which is a good sign for an exciting trading session with very good market opportunities. Markets review The USD hit a one month high against the JPY this morning, caused by the drop in oil prices and signs of improved confidence in the US financial sector on Wednesday. The month high in USD/JPY was set at 107.99. Oil extended its losses yesterday to fall more than 20 USD from all time high above 147 USD, while US financial shares rose after President Bush dropped a threat to veto a housing rescue bill. The USD was also supported by the comments from Philly Fed President Plosser we wrote about yesterday. The EUR/USD was little changed at 1.5681 this morning. The CAD fell to its lowest close in two weeks against USD and closed at 1.0103. The Reserve Bank of New Zealand cut its cash rate by a quarter percentage point to 8 %, in its first interest rate cut in five years and said further reductions were likely to counter a rapidly slowing economy. The NZD/USD stood at 0.7444, having fallen from around 0.7500 following the rate decision. Technical analysis GBP/CHF The GBP/CHF broke through its strong resistance around 2.06 a second time. The long term sideways trend has existed since May. After the newest break, the market could go on with its bullish trend. If the market returns to the channel again, it could come back to its support around 2.02. USD/JPY In USD/JPY the market took a second attempt to try to break through its resistance around 108.50. Since then, the market recovered to its very strong support at 105.5. The second try to break 108.50 could be a sign for continuing the long term upward trend. Otherwise, the market could come back to its support again. Pivot Points - Daily FX Support and Resistance Levels Daily Calendar & Key FX Events Varengold Bank IMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THIS DOCUMENT This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational urposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.