Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | May 01 09 09:15 GMT |

Good morning from wonderful Hamburg. Since yesterday evening, we knew that even the U.S. government failed to protect Chrysler from the insolvency. It remains to be seen what will happen with General Motor's. The stock markets react amazingly cool-headed. However, we wish you prosperous trading day and a nice weekend. Markets review The JPY strengthened to a two-week low versus the EUR and weaken against USD. Japan's consumer confidence declined in March for the first time since one year and increased the probability that the Bank of Japan will keep the interest rate at 0.1 percent. Economist expects that today a U.S. report will show that the manufacturing rose for the fourth months, from 36.3 in March to 38.4 in April. 'Optimism that the worst of the global recession is over, is re-emerging thanks to an improvement in macroeconomic data', said Akitsugu Bandou, senior economist in Tokyo at Okasan Securities Co. Yesterday the USD/JPY rose 0.99 percent and the EUR/JPY 0.70 percent. Today in the early Tokyo trading session, the AUD and NZD rose against the USD as the global stock market spurred optimism that the world's recession is easing. The AUD/USD headed for its 9th weekly gain, the longest winning phase since December 2003. Also the CAD profits from the optimism and an increased investors demand for commodity-linked currencies. In order of this, the USD/CAD fell to its highest level since January Technical analysis NZD/USD Since the middle of April the NZD/USD traded close to a bearish trend-line and recovered last week. After crossing this line the currency pair has been trading in a zigzag course and failed to climb sustained over its resistance at 0.5739. Now it seems that the market reversals again and shrank near to a new downward trend-line. It remains to be seen if the support at 0.5529 could stop the bears again. CAD/JPY The currency pair lost last week its support at 80.46 and fell near to its 78.00 level. After touching a multi-week low the CAD/JPY recovered close to an upward trend-line. This bullish movement boosted the currency pair over its resistance lines at 80.45 and apparently the 82.47 was sustainable crossed as well. This may support further bullish movements. On the other side the RSI shows a strong overbought market 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.