Choppy trading on currency markets
The dollar slipped in choppy tradingon Wednesday, as investors kept their bearish view on the low-yielding currency, while the yen firmed amid persistent worries about the health of the global financial system. The yen and Swiss franc may extend gains against major currencies as declines in gold and oil feed speculation investors are exiting purchases of commodities that were financed with cheap loans from Japan and Switzerland. Crude oil futures with delivery in May fell to 101.80 for barrel, which is a 6 dollar drop compared with Tuesday’s close price. The gold futures with June’s delivery fell with 45 dollars to 937.10.
On the other hand the Canadian dollar sunk, leaded by the commodity’s drop. USD/CHF crossed again the parity level and close at 1.0113.
The US currency fell on early day trading, but after that it managed to recover some of its losses. The euro started the day with raise to 1.5782 against the dollar, but the couple closed at 1.5610.
During the Tokyo session, the yen passed again the 100 level per dollar and marked a day high at 97.64. With the start of the London markets the US currency managed to recover some of its losses and close at 98.75.
The sterling remained negative against most of the major currencies, after minutes from the Bank of England's Monetary Policy Committee showed two of nine policymakers favored a rate cut this month, which added to speculation that UK rates are heading lower soon.
Today the news from the economic calendar will start with Switzerland’s data about the trade balance for February. Later from Britain the interest will be focus on the data about retail sales for the past month. Overseas, from Canada we will watch for the leading indicators change in February and from US the main data’s will be from Philadelphian Fed index for February and initial jobless claims for the past week.
TECHNICAL OVERVIEW
EUR/USD
The euro started yesterday’s session with a raise to 1.5782, but after that it stepped back and closed at 1.5642. Support of the euro is seen at 1.5560, which is also 23.6% Fibo of the 1.4440-1.902 movement. If this level gets break next supports will be expected at 1.5450 and 1.5345, which is also 38.2% Fibo of the same movement. If euro starts gaining, resistances will be expected at 1.5815, followed by the psychological 1.5900 and 1.6000.
EUR/USD (chart)
| Support | 1,5560 | 1,5450 | 1,5345 |
| Resistance | 1.5815 | 1.5900 | 1,6000 |
USD/JPY
The dollar fell again versus the yen, as passing the 100 level and closing below 99.00. So today’s supports are seen at 96.60, 91.00 and 88.40. In positive direction the resistances are expected at 100.20, 102.10 and 103.70, as the first one is also 23.6% Fibo retracement of the 114.63-95.75 movement.
USD/JPY (chart)
| Support | 96.60 | 91.10 | 88.40 |
| Resistance | 100.20 | 102.10 | 103.70 |
GBP/USD
With the start of the London session the sterling started its slump against the dollar. The day low was reached at 1.9803. After dropping below its two short-time supports at 1.9985 and 1.9910, the pound will expect support from 1.9745, 1.9610 and 1.9400. In positive direction the sterling will meet resistances at 1.9910, 2.0090 and 2.0230, as the first two are also 38.2% and 50.0% Fibo retracement of the 2.0831-1.9337 movement.
GBP/USD (chart)
| Support | 1.9985 | 1.9910 | 1.9750 |
| Resistance | 2.0260 | 2.0400 | 2.0480 |
*****
To view the original document, please click on the link below:
http://reports.aiidatapro.com/BBB/STS_Finance/FX_daily_review_20.03.2008.pdf
*****
Copyright: 2007 STS Finance AD. All rights reserved.
For further Information please contact STS Finance, 1 Chervena Stena Str. , 1421 Sofia
Phone: + 359 2 963 11 38, fax: +359 2 963 09 36, e-mail: research@finance.sts.bg, web site: http://www.finance.sts.bg
*****
AII Data Processing does not endorse in any way, the views, opinions or recommendations expressed above. The use of the Information is subject to the terms and conditions as published by the original source, which you have to read and accept in full prior to the execution of any actions taken in reliance on Information contained herein.
 | SeeNews SeeNews is a business and financial news and information provider which brings its visitors and customers access to detailed coverage on the fast-growing companies, economies and markets of ten Southeast European nations. |
Search for: news |
Search for: index |
Search for: currencies |
Search for: economic calendar |
Search for: chart |
Search for: sales |
Terms & ConditionsPrivacyCopyrightPublished by All Data Processing. All rights reserved. Created by Ladger.
FX daily review 20.03.2008.pdf, 166 Kb
