Daily-FX-Market

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Recent sell offs across global over the past few weeks have succeeded in holding investors on the sideline, while major institutions and central banks assess the potential damage of the most recent correction in equities. The US dollar and gold have emerged as the safest bets in the immediate future, as both continue to benefit from “risk aversion”.

EURUSD
The Euro continues to fall against the greenback, extending its largest monthly drop in over ten years against American currency. The European currency lost 7.4% against the USD in May, its sixth straight monthly decline, as the 16-nation currency has been unable recover from the region’s debt crisis. Any indication of a recovery in the price action is immediately followed by a sell off supporting the argument that all attempts at recovery are simply new opportunities to short the flailing currency

Support/Resistance 1.2200/1.2333

AUDUSD
The Australian Dollar extended losses overnight after RBA governor, Glenn Stevens, opted to hold the nation’s benchmark rate at 4.50% and signaled that the central bank may keep borrowing costs unchanged in coming months. Rising concerns about the global economic recovery and Europe’s sovereign debt crisis have hurt the Aussie. The currency fell 8% against the USD in May – its worse monthly performance since January 2009 in the forex online market.
The Australian currency has suffered proportionally to the loss in global risk appetite and will most likely continue to suffer barring any major change in investor sentiments.

Support/Resistance 0.8195 0.8420

The EUR/AUD, a widely used currency pair for carry trades, fell over 250 pips yesterday, slipping from 1.5000 to around 1.4750. Gold continues to rally, while Oil prices broke out of their slump to rise 4.0%. The OECD recent statement has certainly helped move the markets. The international organization announced that it does not foresee the occurrence of a double dip recession; however, remains concerned that bank finances around the world continue to be vulnerable
Up ahead, economic news is light today; therefore, conditions remain optimal for weakness in safe haven currencies such as the Dollar and Yen, with increased momentum towards to riskier currencies.

EUR/USD
Renewed debt concerns about the Euro-Zone continue to strain the single currency. In overnight forex online trading, the EUR/USD slipped to fresh low of 1.2153, trading just a few pips above the 4-year low it hit last week. However, the highly traded pair has since recovered, and managed to touch on a high of 1.2275 in this morning’s Asian session.  Nonetheless, EUR/USD sentiment remains fairly negative which may limit any additional advance in the pair to its 1.2350 resistance.
Support/Resistance 1.2145/1.2350

GBPUSD
The GBP/USD seems to be strengthening, as the pair successfully bounced off of its 1.4250 support several times over the last seven trading days. The Pound’s recent movement against the Dollar suggests that demand for the pair could be rising. If it continues to trade out if its 1.4250/1.4500 trading range we may see a breakout to the upside occur.
Support/Resistance 1.4250/1.4510

The economic recovery in Japan favor’s the manufacturing companies that will result good in coming days, that is Nissan group is making plans to spend the major part of its capital into buying the new technology equipments for leading the footstep with this world. This will rose the job openings and more number of people will be engaged in working that ultimately raises the demand for goods, provides relief to the economic condition of Japan.

The BOJ had decided to fix the interest rate to 0.1 percent that supports the policymakers to fight against the deflation rate. This will help in recovering from the Global world’s economy because of the increase in demand of exports from Japan which leads to rebound of manufacturing companies in Japan.

Since the Japan’s economy results less as estimated by the experts of the forex online market benefits the EUR/USD currency pairs trading and it reaches to high level of 91.78. It happens due to the failed export recovery along with the less consumer spending. BOJ is in pressure after the two days meeting to decrease the deflation rate in Japan. The Government continues in their expectations from BOJ to do something better in order to reduce the deflation rate but the BOJ is not willing to change its policies after seeing the GDP growth rate.

In terms of Technical analysis it is estimated that the GDP rate of Japan rises to 4.9 percent in past three months till March it was 4.2 percent and was expected to be 5.5 percent from the experts. There was a rise in consumer spending of 0.3 percent in first quarter of this year that was 1.7 percent in the past year’s quarter four. There was a lead in housing investment is shown after the continuous five quarters  of 0.3 percent. This was the first increment shown in the housing investment while in business investment the past rise was of 1.3 percent where as morning results shows gain of 1 percent. After getting all these results the BOJ holds a two day meeting to and also decided to keep the interest rate to only 0.1 percent and it may be expected to announce the leading plan in today’s meeting.