Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Apr 21 09 09:13 GMT |

Good morning from wonderful Hamburg. Unfortunately, it seems that the bad news around the world about the financial crisis could appoint the markets again. However, we wish you a prosperous trading day Markets review The GBP fell against the JPY, the USD and the CHF as the index for Bank shares, the FTSE 350 Banks Index, dropped 5.3 %. Yesterday the GBP/JPY declined 3.02 % from 146.76 to 142.32 at its closing. As well the Confederation of British Industry lowered its forecast for the U.K. economy and expects a contract of 3.9 % in 2009. The USD rose versus the EUR near to a five-week high on concerns that the global recession could worsen. So it boosted demand for the USD as a refuge. The EUR/USD traded at 1.2888 at its lowest point from 1.3049 at its opening. Since the middle of March the EUR traded close to the weakest level against the JPY on speculation the ECB will lower its key interest rate. 'In this environment, the dollar and the yen are likely to be bought as safe-haven currencies' said Yuji Saito, head of the foreignexchange group in Tokyo at Societe Generale SA. The CAD declined to the lowest level in more than a week as stocks and crude oil tumbled and the Bank of Canada prepared to make a decision on interest rates and issue a report on monetary policy today. The EUR/CAD rose 1.14 % from 1.5828 at its opening to 1.6009 at its closing. Technical analysis GBP/CHF Since the beginning of April, the currency pair has been trading in a bullish trend-channel and climbed over the 1.7200 level. Yesterday the GBP/CHF crossed within two 120- minutes candlesticks its trend-channel and lost this support. It seems that the currency pair would test its next support at 1.6930 but a lot of dojis at least could be a sign for a new trend-reversal. USD/CAD The USD/CAD traded within the first half of April in a bearish trend-channel and fell at the inflection point under the 1.2000 level. After touching a year low, the currency pair started a strong bullish movement and left the trendchannel, crossed its resistance at 1.2308 again and tested the 1.2400 barrier. Though the RSI shows a strong overbought market and demonstrate the risk on the downside. 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.