Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Jan 14 09 08:34 GMT |

Good morning from beautiful and cold Hamburg. The FOREX market keeps volatile and day after day there circulate more speculations of the ECB rate decision and the U.S. economy. However, we wish you a successful trading day Markets review Having the EUR/USD weakened on Tuesday to a month-low at 1.3141 it rebounded and rose to 1.3281 today. Weak U.S. retail sales and a government report showed that the U.S. trade deficit narrowed the most in 12 years to put pressure on the Greenback. Also the USD fell versus the GBP after FED Chairman Ben Bernanke said fiscal policy alone won't lead to a lasting recovery in economic growth. Yesterday the GBP/USD traded between 1.4470 and 1.4829 and recovered up to 1.4608 today. The EUR/GBP rose for the second day after a report showed that U.K. home sales dropped the most since 1978 and retail sales had the worst December in almost 14 years. The currency pair climbed beyond the 0.91 level again and closed at 0.9092. In early Tokyo trading the EUR/GBP continued its bullish trend and rose to 0.9108 at its high. The EUR/JPY fell on Tuesday from 119.19 at its opening to 117.81 at its closing after reports revealed Japan's corporate bankruptcies rose the most in eight years in 2008. Standard & Poor's revised its New Zealand's AA+ foreign currency credit rating outlook to negative which leaded the NZD/USD to a loss of 3.89 % to 0.5533 at its Tuesday's closing. Technical analysis NZD/USD The NZD/USD recovered and traded till 12th January in an upward trend after it traded for around two month close to a strong bearish trend-line. In the last two days the NZD/USD lost 7.52 % and breached its important support-line at 0.5584. This development could boost the bearish trend. The MACD declined near to its zero-level and let suggest that the currency pair could test its next support at 0.5181. EUR/JPY Since the End of November, the EUR/JPY has been trading in a small trend-channel between middle and upper Bollinger Bands. On the 9th of January the currency pair lost and crossed the middle Bollinger Bands and declined a huge step near to the multi-monthlow. It seems that only the lowest Bollinger Bands could support the EUR/JPY. The Momentum indicator fell to -8.82 and shows a potential risk that the bearish trend will continue. 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.