• Online Forex trading Community

The JPY gained for the first time since October 7th against the EUR

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 10/27/09


Good morning from Hamburg. Yesterday the losses along the stock market caused aggressive movements at the FOREX market. Investors cut high-yield trades to avoid more losses. However, have a nice Tuesday and good luck in Trading.

Market review

Yesterday, low-yielding currencies climbed on concern that U.S. bank losses will derail the global economic recovery. The USD and the JPY climbed against the most of the major currencies while Asian stocks and the S&P weakened, which increased demand for the relative safety of those both currencies. The EUR/USD fell about 160 pips and touched the 1.4840 at its lowest level. Yesterday, the JPY gained for the first time since October 7th against the EUR. The EUR/JPY dipped more than 100 pips after it touched a low of 169.82. The U.S. bank shares fell 3.3 percent collectively while the S&P 500 slid 1.2 percent in New York. The Nikkei 225 declined 1.3 percent while the MSCI Asia Pacific Index of regional shares decreased 1.5 percent today. The USD also climbed to its highest level in one week against the NZD after Prime Minister John Key said the NZD’s gains were dumping inflation concerns. That supported the expectations the RBNZ will hold off increasing interest rates in the future. The RBNZ, which acts independently of the government, will hold its next rate decision on October 29th. The NZD dipped for a fourth day versus the USD. It reached its lowest level at 0.7448, which is also the lowest since a week.


During October the EUR/USD has gained inside a bullish trend channel. After it touched the lower line of the channel several times, it finally broke through it and fell to the support level of around 1.4840. If the market doesn’t break this support level and rebound back over the 1.4900, so we probably see more gains towards the 1.50 and the bullish trend channel.


As you can see, the GBP/CHF has been moving along the Fibonacci retracement lines. After it fell to the 61.8% support at 1.6377, it pulled back and crossed the 50% level before finally reaching its high at the 23.6% resistance. Anyways, the market looks to get resistance from this level, while it already moved around this level during the middle of the month. This might be a sign for a recovery towards the 38.2 % (1.6536).

Main Menu