Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Sep 29 09 09:13 GMT |

Good morning from Hamburg and welcome to the Daily FX Report. Today we will report about the US market and some other important details about some currency pairs. Anyway, we wish you a successful trading day Markets review The EUR climbed for the first time in six days versus the JPY to 131.45 as the Asian stocks rebounded and before a report forecast to show that the European confidence in the economy improved. The JPY declined to 90.01 against the USD as the Japanese Trade Minister Masayuki Naoshima mentioned a stronger JPY will hurt exporters and stoking speculation that Japan may intervene in currency market. The USD climbed and touched the 1.4606 level versus the EUR. Speculations that the Federal Reserve may keep its benchmark interest rate at a record low for too long and that increases the pressure on the USD. Federal Reserve Chairman Ben. S. Bernanke and many other policy makers may hold off increasing rates until the mid-term Congressional elections in November 2010 is over, as inflation stays within the central bank`s target rate. In Europe said European Central Bank President Jean-Claude Trichet, that the USD is extremely important for the world economy and it`s too early for the ECB to unwind emergency stimulus measures. He mentioned that only a strong USD will support a recovery from the recession. Technical analysis USD/CHF Since the middle of August, the USD has been trading in bearish trend channel. When it reached or crossed the upper line from the trend channel, the currency pair rebounded always. Now it reached the upper line of the trend channel again and it seems that the USD can`t cross it. Also the RSI may indicate a weakening trend XAU/USD Since the beginning of September, the XAU has been trading in a bullish trend. Now, it reached the bottom of the Bollinger Bands. Four times before, when the XAU touched the low Bollinger Band and was able to recover close to or over the middle Bollinger Band line and it seems that support line at 984.94 is strong enough. Also a crossing MACD could indicate, that the last down trend is over and we might expect a recovery. 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.