Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Aug 19 09 09:33 GMT |

Good morning from sunny Hamburg und welcome to our newest Daily FX Report. The Forex market keeps on moving very volatile und driven by some important economic data's. However, we wish you a successful trading day. Markets review Yesterday the National Statistic Office in London reported that U.K.'s inflation rate unexpectedly held at 1.8 percent this month, which giving the Bank of England less reason to keep the interest rates at a record low. In order of this, the U.K. gilts declined and the GBP/USD rose from 1.6348 at its opening to 1.6587 at its highest level. In the early Tokyo trading hours the JPY strengthened versus the USD and EUR as Japanese equities fell, prompting investors to reduce holdings of higher-yielding assets. The EUR/JPY weakened from 133.84 at its opening to 133.50. The German investor confidence jumped to its highest level in more than three years after a national government stimulus packages and rising exports pulled Europe's largest economy out of the recession. The index climbed to 56.1bps in August after 39.5bps in July. Yesterday the USD/CHF declined from 1.0780 at its opening to 1.0757 at its closing. The U.S. wholesale prices fell 0.9 percent, more than forecasted. The AUD/USD gained after the national Minister for Resources and Energy Martin Fergusen said that an accord between Exxon Mobil Corp. and PetroChina Co. to supplying China with Natural Gas from Australia was endowed with a record of 42bln USD Technical analysis GBP/CAD The currency pair traded since the beginning of July close to a bearish trendline until the bulls helped to cross the trendline this week. Now it seems that the GBP/CAD build above its new support at 1.8209 a basement. If this support will be strong enough it could boost the GBP/CAD near to its next resistance at 1.8340. The MA Oscillator may also support the bulls if the support will hold. EUR/AUD Having the EUR/AUD touched its highest level in July the bears entered the market and led the currency pair down near the 1.6800 level. From this multi-month low a short recovery phase crossed the lower Fibonacci fan and is now close the weekly pivot point. It remains to be seen, if the EUR/AUD could rose sustainable above the lower Fibonacci fan, supported by an increasing MA Oscillator. 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.