Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Nov 19 09 10:16 GMT |

Good morning to our Thursday's Daily FX Comment of this week. Bad rated banks inside the UK may be the main reason for the weak GBP in the past few trading days. We wish you a nice and relaxed trading day and successful trades. Markets review The JPY and the USD climbed against the EUR on speculation that European banks will disclose more credit losses. This would increase demand for the relative safety of the JPY and USD. Both countries', the U.S. and Japan, have their interest rates near zero. The JPY climbed versus all the 16 major crosses after Asian stocks slipped. The Nikkei 225 Fell 1 percent while the MSCI Asia-Pacific Index dropped 0.6 percent. Yesterday, the Mitsubishi UFJ Financial Group Inc. said that it plans to sell as much as 1 trillion JPY ($11.2 billion) in stock. The USD/JPY dropped to 89.12 after touching a low of 89.07. It still trades in a middle-term downward trend phase. The EUR fell also against the JPY as it reached the low at 132.80. The GBP dipped for a third day against the USD after the Daily Telegraph reported that according to the world's biggest credit-checking company, U.K. banks are in a worse state than lenders anywhere else. The GBP/USD fell to 1.6700 after it reached a low at 1.6686 while opening the day at 1.6749. The U.K currency also fell against the JPY. It reached a low at 148.65, which was the lowest level since November 12th. Technical analysis CHF/JPY Since November 10th the CHF/JPY has been moving in a downward phase. As you can see, the CHF/JPY has crossed the middle Bollinger band and is trading around the first weekly pivot support level at around 87.82. If the market breaks the second support, it may fall further towards the lower Bollinger band (same as the lowest price from the 17th, which is at 87.60) and the second support level of around 87.10 CAD/CHF During the last five trading days, the CAD/CHF has been moving inside a bearish trend channel. After touching the resistance line of 0.9660 for the last time yesterday, the market dipped to the support line of around 0.9550 and the lower line of the channel. This might be a sign for a short-term oversold market. The pair may rebound towards the upper line of the channel. 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.