Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Nov 27 08 08:54 GMT |

Good morning from wonderful Hamburg. Due to the terror attack last night as many people died in India, stock and bond markets will be close on Thursday, countries' central bank said in a statement Markets review Inflationary pressure is coming down in the euro zone and the ECB has room for another rate cut, ECB governing council member Christian Noyer said. Euro zone inflation is expected to remain under 2 % throughout next year, due to a fall in commodity prices and a slowing economic growth, he adds. He doesn't rule out a rate cut by the ECB as inflation in Germany, the euro zone's biggest economy, tumbled this month. The EUR/USD was back again above the 1.29 level while some traders believed in more gains of the currency pair. The ECB is going to hold a policy meeting on December 4th and analysts expects another 50 bps cut, which will take interest rates to 2.75 %, the lowest level for more than 2 years. The EUR/JPY was 0.27 % down and trades currently around 122.60 while the USD/JPY still trades above the 95.00 level. Data on Wednesday showed U.S. consumer spending reached its biggest drop in more than seven years in October while the consumer confidence fell to a 28-year low in November. Australian Q3 capital spending is 0.6 % up qtr/qtr, which is above the forecast of the 0.5 % increase. Actual Q3 capital expenditure is at A$ 23.25 bln (15.2 bln USD). The AUD/USD trades stable at 0.6503 with a day-opening at 0.6517. Technical analysis EUR/USD After breaking through the 1.28 resistance line on November 24th the EUR/USD traded in a zigzag formation. If the market will break the 1.28 support line it could fall further, otherwise it could continue its zigzag formation with a break through the current bearish trend line GBP/CHF Since the middle of September the GBP/CHF has been trading in Fibonacci retracement lines. After touching the 1.75 retracement line the market recovered and trades now at the 38.2% line. If the pair doesn't enter the middle retracements, it could come to a return to the 1.75 support line. 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.