Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Feb 24 09 09:09 GMT |

Good morning from Hamburg and welcome. Week for week we have to report more and more news about governments which are trying to support their economy in the region. However, we hope you will have a nice day and make successful trades Markets review The JPY fell for the fifth day against the EUR and touched the lowest level since a month because of expectations a government report would show tomorrow, that the trade deficit increased to 1.2 trillion JPY ($12.7 billion) in January, which would be the most for more than two decades. The JPY also declined to a 12-week low versus the USD after the U.S. financial regulators said yesterday they will begin examinations this week to determine if banks have enough capital, according to the statement. The USD/JPY rose to 95.07 after touching its highest level since December 1st at 95.20. The EUR/JPY climbed to 120.90 from 120.10 yesterday after touching a high of 121.93. As a long term view the JPY decreased 5.5% against the USD in February, which is the worst monthly performance since April 2004. The EUR/USD rose on concern the S&P/Case-Schiller Index of home prices in 20 U.S. cities fell 18.3% in December from a year earlier, which would be the biggest drop since January 2001, a survey showed. As well the USD bonded against EUR among that the U.S. consumer confidence decreased to a new record low, a report will probably show today. The EUR/USD rose to 1.2992 at its high from 1.2844 at its opening. The GBP/USD climbed to 1.4552 from 1.4487. Technical analysis GBP/USD Since the end of September the GBP/USD has been moving in a bearish trend channel. After touching the 1.50 resistance line outside of the channel, the market came down, touched the upper line of the channel and pulled back over the 1.4380 resistance line. This could be a sign for further gains towards the resistance line of 1.5000 EUR/AUD During the past 20 days the EUR/AUD has been trading in Fibonacci retracement lines. As the market broke through the 61.8% resistance line yesterday, the pair seemed to be overbought and came down to the 50% retracement line. If the market breaks the 50% (1.9730) retracement line it could boost the bearish movement towards the 38.2% (1.9574) support level. 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.