Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Oct 16 09 08:44 GMT |

Good morning from Hamburg and welcome to our last Daily FX Report of this week. Today, we would like to report about the GBP and some interesting data from the U.K. However, we wish you a successful trading day and a beautiful weekend. Markets review The GBP climbed the most in more than eight months versus the EUR and reached 0.9186 on speculation that policy makers will reduce their bond buying program as the economy shows signs of recovering from the recession. Also the GBP/USD jumped to 1.6344. This was the biggest three day gain in more than two months. The GBP dropped 7.2 % versus the EUR since June 2008 as the central bank increased its asset purchase program and the Bank of England Governor Mervyn King said that the GBP`s weakening is helpful for the economy. Yesterday the number of people in the U.K. without a job benefits increased by 20,800 in September, less than the forecast, a report showed. The GBP relative strength index climbed to more than 43 above the important 30 threshold. In the U.S. the former Federal Reserve Chairmen Alan Greenspan said that he's not overly concerned about the recent weakening USD, while warning of long term costs to the country and its currency from the rising national debt Technical analysis EUR/CHF Since the middle of September, the EUR has been trading in a bullish trend against the CHF. During the last four days, the currency pair has started a downward movement but at its support line according its Pivot point, it recovered and the prices climbed again. Furthermore, a crossing MACD through the signal line from below may indicate a changing trend. Next resistance Pivot Point is at 1.5233 GBP/AUD During the middle of September, the GBP/AUD has been trading in a bearish trend channel. For a few days, the GBP touched its support line at 1.7380 and recovered to the upper trend channel line. The last two times as the currency pair reached the upper trend line, the prices rebounded. Also the RSI could support a continuing bearish trend for the GBP/AUD 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.