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Good morning from wonderful Hamburg and welcome to our Daily FX Report.
Today we are talking about the Japanese economy and the interventions by the Bank of Japan. Furthermore we will have a look at the currencies in New Zealand and Australia and an interesting situation concerning the benchmark rates.
Anyways we hope you had a great weekend and wish you a successful start in the trading week!
Market Review – Fundamental Perspective
The Bank of Japan will release the Tankan survey that may show that the pace of improvement in business is slowing down. Forecasts showed that the Index may rise 6 points in the last month. But the index might add pressure on policy makers to put more cash into the economy. Companies in Japan are still afraid that the JPY can reach the highest level since 1995, against the USD. By the intervention of the Japanese government the JPY weakened in the last week, the Bank of Japan is still trying to support the economy’s recovery. The Tankan Index might be seen by a level around 7. Positive numbers shows optimism. The Bank of Japan paid more attention to economic risks and the global recovery, especially the U.S. The Federal Reserve signaled further monetary decisions if the economic recovery will slow down. When this statement was published the USD lost against the EUR and the JPY. The USD/JPY traded at 84.21 on September the 24th. The pair lost gains after the intervention of the Bank of Japan had pushed the pair above 85. But even a level around 90 will not be enough for the Japanese economy.
The AUD and the NZD increased two days in a row after speculations came up that the Federal Reserve will expand stimulus measures boosted investor’s demand for higher-yielding assets. The Reserve Bank of Australia may increase the benchmark rate in the next week. The AUD climbed to the strongest level since the last two years. The AUD/USD traded at 0.9625 in the last week. Against the JPY the currency gained 0.3 percent to 81. The NZD traded at 0.7360 against the USD and advanced to 62.04 against the JPY. The interest rate in Australia is at 4.5 percent and in New Zealand at 3 percent compared to Japan with 0.1 percent and nearly 0 in the U.S. The risk in such situation may be that quick movements in the currency market will erase profits.
Daily Technical Analysis - Our Focus Currencies for Today
EUR/USD (4 Hour)
The EUR/USD traded in a bullish trend channel during the shown period. At the 22nd of September the pair nearly crossed the trend line, but the Federal Reserve released the benchmark interests and the currency pair climbed above the support line around 1.3307. The upward trend inside the channel may go on and it remains to be seen if the market can break through its next resistance around 1.3496.
Intraday Support & Resistance (4 Hour)Support Levels around Resistance Levels around
1.2677 1.3496
1.2972 N.A.
1.3307 N.A.
AUD/USD (4 Hour)
Since the beginning of September, the AUD/USD rallied to a level around 0.9602. This is the highest level since the last two years. Now it seems that the currency pair is not able to cross the resistance line for further gains. The CCI Indicator fell back under the 100, this may show losses.
Intraday Support & Resistance (4 Hour)Support Levels around Resistance Levels around
0.9478 0.9602
0.9331 N.A.
0.9097 N.A.
Download platform.
http://www.igtfx.com/pro/igtfx4setup.exe
Today we are talking about the Japanese economy and the interventions by the Bank of Japan. Furthermore we will have a look at the currencies in New Zealand and Australia and an interesting situation concerning the benchmark rates.
Anyways we hope you had a great weekend and wish you a successful start in the trading week!
Market Review – Fundamental Perspective
The Bank of Japan will release the Tankan survey that may show that the pace of improvement in business is slowing down. Forecasts showed that the Index may rise 6 points in the last month. But the index might add pressure on policy makers to put more cash into the economy. Companies in Japan are still afraid that the JPY can reach the highest level since 1995, against the USD. By the intervention of the Japanese government the JPY weakened in the last week, the Bank of Japan is still trying to support the economy’s recovery. The Tankan Index might be seen by a level around 7. Positive numbers shows optimism. The Bank of Japan paid more attention to economic risks and the global recovery, especially the U.S. The Federal Reserve signaled further monetary decisions if the economic recovery will slow down. When this statement was published the USD lost against the EUR and the JPY. The USD/JPY traded at 84.21 on September the 24th. The pair lost gains after the intervention of the Bank of Japan had pushed the pair above 85. But even a level around 90 will not be enough for the Japanese economy.
The AUD and the NZD increased two days in a row after speculations came up that the Federal Reserve will expand stimulus measures boosted investor’s demand for higher-yielding assets. The Reserve Bank of Australia may increase the benchmark rate in the next week. The AUD climbed to the strongest level since the last two years. The AUD/USD traded at 0.9625 in the last week. Against the JPY the currency gained 0.3 percent to 81. The NZD traded at 0.7360 against the USD and advanced to 62.04 against the JPY. The interest rate in Australia is at 4.5 percent and in New Zealand at 3 percent compared to Japan with 0.1 percent and nearly 0 in the U.S. The risk in such situation may be that quick movements in the currency market will erase profits.
Daily Technical Analysis - Our Focus Currencies for Today
EUR/USD (4 Hour)
The EUR/USD traded in a bullish trend channel during the shown period. At the 22nd of September the pair nearly crossed the trend line, but the Federal Reserve released the benchmark interests and the currency pair climbed above the support line around 1.3307. The upward trend inside the channel may go on and it remains to be seen if the market can break through its next resistance around 1.3496.
Intraday Support & Resistance (4 Hour)Support Levels around Resistance Levels around
1.2677 1.3496
1.2972 N.A.
1.3307 N.A.
AUD/USD (4 Hour)
Since the beginning of September, the AUD/USD rallied to a level around 0.9602. This is the highest level since the last two years. Now it seems that the currency pair is not able to cross the resistance line for further gains. The CCI Indicator fell back under the 100, this may show losses.
Intraday Support & Resistance (4 Hour)Support Levels around Resistance Levels around
0.9478 0.9602
0.9331 N.A.
0.9097 N.A.
Download platform.
http://www.igtfx.com/pro/igtfx4setup.exe
