The JPY rose from a four month low against the USD

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 01/08/10

 

Good morning from very cold Hamburg and welcome to our last Daily FX Report for this week. Today, we expected a lot of economic data from the U.S. Furthermore we analyze GBP and the AUD. However, we wish you good look today and a wonderful weekend.

Market review

The JPY rose from a four month low against the USD and ended with losses versus the EUR after Japans Prime Minister Yukio Hatoyama said that rapid moves in the currency market were not good. The JPY rose against the USD to 93.27 from 93.77 and the EUR dropped to 133.46 versus the JPY from 133.58. The USD continued its loss against the GBP on speculation a recovery in the U.S. labor market will encourage the Federal Reserve Bank to end its policy of keeping interest rates near zero. Also the EUR could recover against the USD and reached 1.4320 from 1.4308.

Today, we expect a lot of interesting economic data from the U.S. We look for the unemployment rate and U.S. payrolls. A lot of economists expect that the report of the unemployment rate will show that job losses halted. Furthermore were expected that U.S. payrolls were probably unchanged in December after falling 11,000 in the previous month. This data could have influence on the USD today.

GBP/CHF

Since the middle of December, the GBP has been trading in a bearish trend against the CHF. Recently, the currency pair touched its support level around 1.6427 and could recover. Furthermore the MACD may indicate a continuing bullish trend with a breakthrough by the signal line from below for the GBP. It remains to be seen if the prices could climb to its next resistance around 1.6669.

AUD/USD

With the beginning of the New Year, the AUD has been trading in an upward trend against the USD. Recently, the currency pair reached its upper Bollinger Band and dropped to the middle Bolls. As you can see, four times before whenever this happened, the AUD could continue its bullish trend. Also a crossing Momentum through the signal line from below may support a further bullish trend.