Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Feb 10 09 09:31 GMT |

Good morning from snowy and cold Hamburg. The FOREX markets will be obviously further impressed by political decisions around the world. It seems that news concerning the world's financial crisis have the market under control again. However, we wish you a prosperous trading day. Markets review The USD declined on Monday against a basket of major currencies as the economic stimulus package of the U.S. government was likely to be approved by the Senate. The EUR/USD rose on Monday about 1.38 % to 1.3093 at its high. In early Tokyo trading, the currency pair fell to 1.2810 after a Nikkei newspaper report showed that Russian bank and business may ask foreign lenders to reschedule loans worth about $400bln. Further incriminating for the EUR/USD was that European finance ministers signaled increasing apprehensiveness that some governments find it harder to borrow in financial markets. The JPY extended its gain versus USD for the second day on speculation that the financial crisis in Europe will broaden and thus higheryielding assets can profit. A report of the BoE this week may show that consumer-prices growth picked up and diffuse any interest rate cut rumors. The GBP/USD climbed therefore for a fifth day from its opening at 1.4798 to its day high at 1.4986. After Australia's business confidence index fell 12 points to -32 points, its lowest level ever. The AUD and NZD follow the index and decreased today the USD about 1.61 rather 1.54 percent Technical analysis USD/CHF Having the USD/CHF sustained a top loss of 15.12 % in December it recovered and has been trading in a bullish trend-channel. The Momentum indicator will maybe assist the upward trend and it seems that the currency pair tests its resistance at 1.1879. Should the bullish trend break, the next support is apparently at 1.1280. GBP/CAD The GBP/CAD has been trading in a bearish trend since the end of November 2008 and broke out of the trend-channel with the beginning of February. The Currency pair crossed the 1.7940 level which labelled now its support. On the upside the next resistance will be at 1.8745. 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.