Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Nov 17 08 08:49 GMT |

Good morning from wonderful Hamburg. Last weekend the whole world joined the G20 meeting with the leaders of the richest nations and emerging markets. They agreed on an action plan to restore the global growth and bring order on the financial system reeling from the world wide credit crisis. Markets review The JPY dips versus USD and EUR after Japanese Q3 GDP shrank 0.1 %, sending the world's second-largest economy into recession. The CAD fell against the USD on Friday, giving back some of the big gains from the previous session as oil price retreated overnight. Thereby the Canadian manufactures expanded their sales in September by 0.1 % from August thanks strong demand from the aerospace industry. The AUD/USD recovers from hefty early losses. Market observers justify the support with a possible state intervention, though RBA would not confirm it had acted. The AUD sunk to 0.6363 in early trade, from 0.6586 late in New York on Friday, but then quickly jumped to 0.6445, leading dealers to suspect RBA was buying. The central bank intervened on at least two occasions last week, bought Aussie around 0.6350 when the market was disorderly and lacking liquidity. The confederation of British Industry says that Britain will suffer its sharpest econ contraction in almost 2 decades next year and the number of people out of work could rise to nearly 3 million by 2010. It says it expects the British economy to contract by 1.7 % in 2009 Technical analysis EUR/GBP The EUR/GBP performed in November very well that it reached almost every day a fresh all time high. In the end of last week the currency pair gained 5.5 %. But now it seems that the EUR/GBP start to correct its massive profits while trading above the upper line of the Bollinger Bands. USD/MXN The emerging Market currency made many losses versus the USD at the beginning of October. After a correction in the end of October it seems that the currency pair follows a new upward trend. If the USD/MXN don't break through the trend line there might be further gains 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.