Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Sep 24 09 08:56 GMT |

Good morning from Hamburg and welcome to our Daily FX Report. We approach the end of the week and have interesting data from the interest rate decision of the Federal Reserve. However, we wish you a successful trading day Markets review The JPY rose against all its 16 major counterparts after a Japanese report showed that the national exports fell for the 11th month, which reduces the demand for higher-yielding assets. The EUR recovered from a one year low against the USD and climbed to 1.4717. The USD climbed about 0.5% to a level 1.0736 versus the CAD. The Chairman of the FED Ben S. Bernanke indicated for the first time since August 2008, that the economy is accelerating, even as they recommitted to keep their benchmark interest rate, exceptionally low for an extended period. At the same time, the Federal Reserve will slow its purchases of mortgage securities for seeking to avoid disrupting the house market. In Europe, the German business confidence rose to a 12-month high in September and indicate that Europe`s largest economy will gather strength after leaving the second largest recession. The AUD/USD increased near to a 13-month high as the Australian central bank said that the nation's lenders are weathering the global recession, adding signs the financial industry is recovering. Technical analysis EUR/JPY Since the middle of September, the EUR has been trading in a bullish trend against the JPY. Now, it reached the bottom Bollinger Band. Four times before when it touched the bottom Bollinger Band, the EUR recovered and started an upward movement. Also it seems that the MA Oscillator may indicate a bullish trend, but it remains to be seen if the currency pair could cross the resistance at 135.45 CHF/JPY During the past two weeks, the CHF has been moving in a bullish trend channel against the JPY. The CHF rebounded always when it touched the upward trend channel line or for the last four days the resistance according to its Pivot point. The MACD shows that the CHF could become a bearish trend. It remains to be seen if the currency pair could cross the bottom trend channel line. The next support would be then around 88.53 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.