Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Jan 13 09 09:42 GMT |

Good morning from beautiful and defrosting Hamburg. The first trading day of the week is over and the ships on the Elbe are back. We can't notice a cold winter mood on the FX market. Even at the beginning of the year, the market is very volatile and any economic or political news can trigger large price movements. Markets review The EUR/USD fell near to a one-month low from 1.3470 at its Mondays opening to 1.3289 at its low influenced by speculation that the ECB have to change her monetary policy which could be involved the highest interest rate cut in the history of the ECB on Thursday. As well the EUR/JPY fell close to a one-month low after Standard & Poor's said it may cut Spain's top AAA long-term sovereign rating. The currency pair lost yesterday 2.34 % at its low to 118.66. The GBP/USD fell for the second day in a row as stocks dropped and a Confederation of British Industry report added concerns about an economic slump. Yesterday the GBP/USD decreased from 1.5140 to 1.4809 and is trading currently at 1.4775. The GBP/JPY extended its losing and went down to 131.24 near an all-time-low. The EUR could benefit from GBP weakness and rose 1.65 % to 0.9030 and closed the session above the important 0.9000 level. The CAD declined the most in almost two months as commodities including gold, nickel and oil fell. The USD/CAD climbed from 1.1884 at its Mondays opening to 1.2184 at its closing. Due to the falling commodity prices the AUD and the NZD fell against the USD as well. On Monday the AUD/USD fell to 0.6787 from 0.7017 and the NZD/USD from 0.5905 to 0.5739. Technical analysis USD/CHF After the currency pair fell in December 13.6 % with the beginning of the year and it rebounded to the middle Bollinger Bands at its high on the 12th January. So far the USD/CHF failed its resistance-line at 1.1156. If it will cross the resistance it could be a signal for a bullish trend especially when the USD/CHF jumps across the middle Bollinger Bands as well. EUR/GBP On the 31st December the EUR/GBP crossed its bullish trend-line and started trading in the bearish trend-channel. It seems that the support-line at 0.8839 could stop the downward-trend. Certainly the Oscillator shows a dull ambience against the EUR/GBP due to the fact that as well the signal fell under the zero-level. Should the first support breaks, the next support might be at 0.8671. 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.