Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Jun 24 09 09:54 GMT |

Good morning from Hamburg. An exciting day with large price movement’s are behind us and the Wednesday promise excitement, too Markets review On Tuesday the USD fell the most in six weeks against the EUR as market participants expect the Federal Open Market Committee will keep the benchmark rate unchanged at 0.25 % at the end of its policy meeting today (announcement at 18:15 GMT). The assessment of the trader is corroborated that the Fed will play down the expectations of higher interest rates which have built in the market, for fears these will choke the economic recovery. Therefore, the EUR/USD surged 1.5 % at 1.4077 and the USD/JPY dropped 0.7 % to 95.22. The decline in the USD buoyed prices for crude oil and copper. So the CAD was able to take profit and increased 0.5 % and the NZD closed the session with a gain of 1.7 % against the greenback. In the Asia session the JPY weakened against a basket of currencies after a Japanese report showed exports declined 40.9 % in May from a year earlier. Also the imports slid 42.4 % from a year ago. Both economic data were worse than expected. The GBP fell 0.9 % against the EUR by comments of BoE Chief Economist Spencer Dale. He said that a weaker currency is making the U.K. assets more attractive to foreign investors and that the exchange rate is a key instrument to increase economic growth. Also the other cross rates showed a reaction, so the GBP/JPY dropped 0.5 % and the GBP/CHF even declined 1.2 %. Technical analysis GBP/USD Since April, the GBP/USD is very bullish. But in the last two weeks the pair trades in a horizontal trading range and the Bollinger Bands narrows noticeably. In spite of the breakout of the Pitchfork, there seems to be a strong support level at 1.6235. Also the Momentum just crossed the signal line and starts to rise. The all might indicate the GBP could increase and come back in the old fork formation in the next trading days 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 mean