The CAD increased against the EUR and the JPY
Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 02/02/10
Good morning from beautiful Hamburg and welcome to our Daily FX Report. The latest U.S. economic data spread hopes that the world’s largest economy could recover faster than expected. However, we wish you a prosperous trading day.
The EUR/USD rose on Monday for the first time since four days before it rebounded during the early Asia trading hours today and fell near to its seven months low again. The EUR resumed its downturn before the European Union issues a review of Greece’s budget-cutting plans tomorrow. The U.S. manufacturing increased in January at the fastest pace since August 2004. The ISM index rose to 58.4 points from 54.9 a month earlier. Japan’s wages tumbled at a nearrecord pace in December. Monthly wages including overtime and bonuses slipped 6.1 percent from a year earlier to 549,259 JPY, the Labor Ministry said today in Tokyo. The USD/JPY expanded yesterday’s gains and rose to 90.91 at the highest level during the Tokyo trading hours.
The AUD declined versus the USD after the Reserve Bank of Australia unexpectedly left the key interest rates unchanged at 3.75 percent at today’s meeting, ending a record stretch of threestraight increases. The CAD increased against the EUR and the JPY as equities and crude oil advanced, one of Canada’s most important exports.
After a countermovement in December 2009, it seems that the metal built a basement around the 1074.60. Starting from this level it climbed above its first weekly resistance pivot point before some bulls brought its earnings home. It remains to be seen if the bulls have enough power to aim the long-term downward-trend line. Otherwise we have to allow further throwbacks near to the 1074.60.
The EUR/GBP failed to break away from its long-term bearish trend-line at the beginning of 2010. Now it seems that the currency pair will boost its downward movement as the youngest recovery come to a quick end as indicated by the tumbling +DMI. On a longterm view the next important support for the EUR could be located at 0.8400.
