Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Oct 02 09 08:11 GMT |

Good morning from beautiful Hamburg and welcome to our last FX report of this week. The JPY could gain versus all of its 16 major counterparts. The GBP had suffered losses in the third quarter. Anyway, we wish you a successful trading day Markets review The JPY climbed to a two month high against the EUR to 129.98 after a global equity slump and concern that U.S job losses will worsen that boosted demand for safe haven currencies. The USD reached a three week high versus the EUR at 1.4519, after the European Central Bank President Jean-Claude Trichet said that disorderly exchange rate movements have adverse implications for economies before the Group of Seven meets in Istanbul tomorrow. The JPY headed for a second weekly gain against the USD as the Asian stocks dropped and reached a level at 0.9853 before a U.S. report forecast to show the jobless rate climbed a second month. Furthermore, the JPY could gain versus all of its 16 major counterparts as the MSCI Asia Pacific Index of regional shares dropped 1.4 % and the Nikkei 225 stock average slipped 2.2 %. The GBP rose against the EUR to 0.9114 but made losses versus the USD and drooped to 1.5920. In the third quarter, the GBP dropped 6.9 % against the EUR and 2.9 % versus the USD. However, in the first half the GBP was able to grow 12 % against other major currency pairs. Technical analysis CAD/JPY Since August, the CAD/JPY has been trading along a bearish trend line. When it touched its support, the currency pair was always able to recover for a short pull back. After that, the prices rebounded again and fell under its support level. Now it seems that this trend will repeat after touching its last support. Also a crossing MACD through the signal line from the top may indicate that the CAD will continue its bearish trend. USD/JPY During the last two month, the USD has been trading in a bearish trend channel against the JPY. When it tried to cross the upper line from the trend channel, the currency pair rebounded always back. The last attempt failed at its resistance at 90.20 to leave the trend channel. Also it seems that the MACD will cross the signal line from the top which could support a further bearish trend 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.