The euro drops as some negative stress-test results become known to the public.
Asian and European trading sessions.
Euro: Market participants are waiting for the results of the ECB stress-test with increased emphasis. Some speculations over the released information that the German bank Hypo Real Estate did not pass the test, immediately influenced on the euro dynamics, and the rate dropped. Therefore, the EUR/USD rate showed minimums in the range of $1,2791.
US Dollar: Positive quarterly corporate reports were released on Wednesday morning. Strong reports of Morgan Stanley, Wells Fargo, Coca-cola and Apple turned out to be above the expectations of the experts. The greenback rallied against the major currencies.
British Pound: The GBP/USD pair set its trading morning minimums around the $1,5200 level.
Japanese Yen: During the morning trading the yen showed some strengthening as concerns over the condition of the European banks increased. The USD/JPY rate dropped to the Y87,00 mark. The investors’ risk appetite reduced and the safe haven currencies strengthened.
Australian Dollar: The increased concerns that the slow-down of the world economy rehabilitation rate would influence the next RBA decision regarding the interest rate resulted in a drop of the Australian dollar rate against the US dollar.
Oil: The oil prices were set at the level of $77.56 per barrel.
American trading session:
US Dollar: The Fed Chairman Ben Bernanke delivered his semi-annual monetary policy report to the Senate Banking Committee today. He stated that economic forecasts stayed “unusually uncertain”. As a result, the US stock markets dropped.
British Pound: The sterling decreased against the US dollar as the Bank of England intended to widen the measures of economic stimulation aimed to rehabilitate the UK economy.
Oil: The increased oil inventories level resulted in the drop of the oil rate to the $77.25 mark per barrel.
Technical analysis
EURUSD
The pair has decline to 1.2701. If the pair breaks this level, the pair will decline to 1.2569. If the pair stays above 1.2701 the pair will rise to 1.2863 and 1.3028.
Resistance: 1.2863, 1.3028, 1.3229
Support: 1.2701, 1.2569, 1.2391
GBPUSD
The pair is trading around 1.5252. Support at 1.5058, resistance at 1.5484.
Resistance: 1.5484, 1.5672, 1.5484
Support: 1.5058, 1.4853, 1.4668
USDCHF
The pair has drawn the pennant. If the pair breaks 1.0514 the pair will rise to 1.0618. If the pair breaks 1.0461 the pair will decline to 1.0399.
Resistance: 1.0618, 1.0726, 1.0821
Support: 1.0399, 1.0275, 1.0150
USDJPY
The pair is declining to 86.10. If the pair breaks 86.10 it will bring the pair to 85.16.
Resistance: 87.01, 88.64, 90.04
Support: 86.10, 85.16, 84.26
AUDUSD
The pair is trading between 0.8903 and 0.8576.
Resistance: 0.8903, 0.9028, 0.9177
Support: 0.8724, 0.8576, 0.8424
Asian and European trading sessions.
Euro: Market participants are waiting for the results of the ECB stress-test with increased emphasis. Some speculations over the released information that the German bank Hypo Real Estate did not pass the test, immediately influenced on the euro dynamics, and the rate dropped. Therefore, the EUR/USD rate showed minimums in the range of $1,2791.
US Dollar: Positive quarterly corporate reports were released on Wednesday morning. Strong reports of Morgan Stanley, Wells Fargo, Coca-cola and Apple turned out to be above the expectations of the experts. The greenback rallied against the major currencies.
British Pound: The GBP/USD pair set its trading morning minimums around the $1,5200 level.
Japanese Yen: During the morning trading the yen showed some strengthening as concerns over the condition of the European banks increased. The USD/JPY rate dropped to the Y87,00 mark. The investors’ risk appetite reduced and the safe haven currencies strengthened.
Australian Dollar: The increased concerns that the slow-down of the world economy rehabilitation rate would influence the next RBA decision regarding the interest rate resulted in a drop of the Australian dollar rate against the US dollar.
Oil: The oil prices were set at the level of $77.56 per barrel.
American trading session:
US Dollar: The Fed Chairman Ben Bernanke delivered his semi-annual monetary policy report to the Senate Banking Committee today. He stated that economic forecasts stayed “unusually uncertain”. As a result, the US stock markets dropped.
British Pound: The sterling decreased against the US dollar as the Bank of England intended to widen the measures of economic stimulation aimed to rehabilitate the UK economy.
Oil: The increased oil inventories level resulted in the drop of the oil rate to the $77.25 mark per barrel.
Technical analysis
EURUSD
The pair has decline to 1.2701. If the pair breaks this level, the pair will decline to 1.2569. If the pair stays above 1.2701 the pair will rise to 1.2863 and 1.3028.
Resistance: 1.2863, 1.3028, 1.3229
Support: 1.2701, 1.2569, 1.2391
GBPUSD
The pair is trading around 1.5252. Support at 1.5058, resistance at 1.5484.
Resistance: 1.5484, 1.5672, 1.5484
Support: 1.5058, 1.4853, 1.4668
USDCHF
The pair has drawn the pennant. If the pair breaks 1.0514 the pair will rise to 1.0618. If the pair breaks 1.0461 the pair will decline to 1.0399.
Resistance: 1.0618, 1.0726, 1.0821
Support: 1.0399, 1.0275, 1.0150
USDJPY
The pair is declining to 86.10. If the pair breaks 86.10 it will bring the pair to 85.16.
Resistance: 87.01, 88.64, 90.04
Support: 86.10, 85.16, 84.26
AUDUSD
The pair is trading between 0.8903 and 0.8576.
Resistance: 0.8903, 0.9028, 0.9177
Support: 0.8724, 0.8576, 0.8424