Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Apr 16 09 08:19 GMT |

Good morning from Germany and welcome again to our Daily FX Report. Unfortunately we have to report bad data and pessimistic concerns from Europe, Asia and the USA. The global financial recession doesn't want to end. However, have a nice day and sunny weather. Markets review The JPY strengthened against 11 of the 16 major currencies, after China said its economy expanded at the slowest pace in almost a decade, which heightened concerns that the global recession may deepen. “It looks like people who had sold the JPY on hopes for better China figures had to buy back the JPY to cover their short positions,” a trader said. China's statistics office reported today that the gross domestic product grew 6.1% in the first quarter compare to last year. This is the weakest grow since December 1999. The JPY rose against the USD before a U.S. report may show today that home construction slowed and initial claims for jobless benefits increased. Yesterday, the EUR touched a two-week low versus the JPY on speculation that today a European Union report could show the region's industrial production dropped by a record pace, which supports the ECB to reduce interest rates. The weak EUR may fall for a second day against the USD while economists estimate the European Union's statistic bureau in Luxembourg will say today that industrial production fell 18% in February from the year before, which would be the biggest decline since the data series began in 1986. The USD/JPY fell to 99.16 after it opened the day at 99.37. The EUR/USD decreased a little to 1.3216. The GBP/USD is performing gains for the 4th day after it touched a high at 1.5068. Technical analysis EUR/JPY Since the end of January the EUR has been moving inside an upward trend channel against the JPY. Now the market is trading very close to the psychological support level of 130 and the lower line of the rally trend channel. Additionally we can indicate a small bearish signal from the MA Oscillator indicator. If the pair breaks both support lines it may start a new bearish trend. AUD/NZD Between the 19th of March and the 14th of April the AUD/NZD was trading stable under the resistance line of 1.2430. But during the past two days the strong AUD gained and broke the middle Bollinger band and crossed its resistance level at 1.2430. That analysis could be a clear indicator for more upward movements towards the upper Bollinger band. 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.