Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Feb 19 09 10:47 GMT |

Good morning and welcome to our Daily FX Report. Today the market expects new bad results of the Euro-Zone banks. Anyway, we hope you'll investigate good trading opportunities Markets review The EUR recovered from a near three-month low against the USD on speculation that German Chancellor Angela Merkel will support Germany's economy, which is the largest in Europe. She plans to take action to help avert the financial crisis in Europe. Finance Minister Peer Steinbrück said yesterday 'Germany would show its ability to act' while some of the 16 European countries are getting difficulties. Today, Angela Merkel is going to hold a press meeting with European Commission President Jose Barroso in Berlin. The EUR climbed to 1.2589 from 1.2530 against the USD and touched a low of 1.2513, which was the lowest level since November 21st 2008. The EUR/JPY climbed to 117.94 from 117.50. Gains in EUR may be tempered by concerns that European companies could report a deeperthan- expected loss because of the global financial turmoil. According to a survey, Axa SA, which is Europe's second-biggest insurer, could probably show a net loss of 1.76 billion EUR today. The BNP Paribas SA, the largest bank by market value of France, could post a loss of 1.36 billion EUR. The USD weakened against the JPY on expectations the biggest U.S. automakers could fail unless they get increased aid from the government. The USD/JPY fell to 93.46 from 93.76 after touching a day-low at 93.28. Technical analysis CAD/JPY Since the middle of November, the CAD/JPY has been moving under two resistance levels of 80.00 and 75.00. After it broke the long-term bearish trend line, the pair crossed the 75.00 level, touched the 80.00 resistance and came back below the 75.00 line. Now the market seems to try to break through the 75.00 resistance again. If this will happen, it could approach a second time towards the 80.00 resistance line. GBP/CAD The GBP/CAD has been trading inside a bearish trend channel since the middle of August. After touching the lower line of the channel for the 4th time, the market pulled back and touched the upper line. Now the pair has been stopped in the near of the middle Bollinger band. In the next days we have to pay attention if the pair crosses the upper line of the trend channel. This might be a long signal and the beginning of a trend reversal. 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.