Comments currency at 22 March 2011
Market Summary
Foreign exchange market yesterday, as the Western Group of Seven on Friday joined hands to intervene against the yen, while Japan's nuclear accident a certain improvement, combined with instability caused Libya's oil prices, commodity currencies are the Canadian dollar and Australian dollar rose appears , while the European currencies the euro and British pound, the more intense the interest rate expectations, have also hit a new high. Continued weakness in the dollar index.

Major currency transactions
GBP / USD: High: 1.6328 Low: 1.6202 Close price: 1.6304

Pound rose yesterday, the pound / dollar had touched a two-week high of 1.6328. British real estate agency network announced in the UK Rightmove house prices index in March was up 0.9%, better than the previous value of 0.3%, the Bank of England will raise interest rates in the near future provide a basis. Because we know that the recent rate hike is expected to boost the pound has been a key factor, but taking into account the slow economic recovery in the UK, coupled with relatively weak housing market, so that the Bank of England caught in a dilemma, overwhelmed by the rising price index for pounds is undoubtedly a good news. Today, the United Kingdom will be announced in February consumer price index CPI data, the market expected the annual rate of 4.0% from January rose to 4.2%, technical graphics point of view, the pound has now dropped out of the channel since the beginning of its Upside to see where the previous high of 1.6350 near the bottom of support came from the 55-day moving average - the location of 1.6040 near the market outlook is expected, the pound under the influence of the inflationary pressure will continue upward, the target bit to see in 1.64 nearby.

If the data in line with expectations, the Bank of England will raise interest rates again increase the possibility. At the same time will be announced on Wednesday the United Kingdom Bank of England meeting minutes and budgets, investors can then focus on its wording in the fight against inflation, such as the film again some tough words, does not preclude the possibility of sterling hit a new high . It now appears that the Bank of England rate hike as early May, which the Bank of England Monetary Policy Committee Dell optimistic tone, saying the recovery of the UK economy is still on track, but played down the importance of weak growth in broad money. It is expected that afternoon, the pound will continue to maintain the support of the data upward trend shocks.

EUR / USD: High: 1.4240 Low: 1.4137 Close price: 1.4220

Euro 4 and a half months yesterday, near the high narrow trading range, the current may be more of a look at this on Friday the euro rose to a technical correction. Yesterday, the euro area and there is not much economic data, but the European Central Bank Governing Council member Moore Xu communique issued on Monday said the ECB is prepared to take timely and decisive measures to prevent the risk of threats to price stability. He revealed in the words of the ECB tends to raise interest rates next month and said the next meeting on interest rates will remain on high alert before. Just a few weeks ago, the central bank president Jean-Claude Trichet has said the accident may raise interest rates in April. Effect by this speech, the euro fell slightly from early to recover some upside momentum. We see about the recent euro mainly from two factors, one of which is expected to raise interest rates just mentioned, but on the other hand is the progress of the debt crisis of the euro area, both with each other game, technical graphics point of view, euro intraday record yesterday 4 months high of 1.4240, from November 2010 record high of 1.4281 is not far. See below support of its decline in the euro last year, 61.8% Fibonacci retracement of the 1.3742 which, while the overhead resistance is seen in November last year, where the high point near 1.43, the euro zone rate hike expectations in the near future the continued support of the next the euro may still maintain the upward trend shocks.

Shock formed upstream of the situation in the euro recently. Although the pre-rating agencies continue to downgrade the euro zone second-tier national sovereignty credit rating, but because of financial stability in Europe, European countries on the Fund's efforts to some extent been recognized by the market and, therefore, the euro is not too much to bear resistance. Will be held later this week summit of EU leaders, will continue to be strong and stable European Monetary Fund, the details of the agreement to consult, if further breakthrough, I believe the euro is still further room to rise.

AUD / USD: High: 1.0070 Low: 0.9950 Close price: 1.0061

Australian rally in commodity currencies, the more obvious yesterday, up more than 100 basis points, or 1%. Then this was mainly due to a turnaround in recent days the world's stock markets, combined with higher energy prices continue to result. We see that due to the earthquake in Japan, the global stock markets last week there were different degrees of decline, and joint intervention in currency markets in the West after the Group of Seven, making the stock market has been largely improved. On the other hand, due to further escalation of the situation in Libya, the West for its military action to stop oil exports, the international oil price is expected to continue rising recently, which led this round of the Australian dollar rally. Technical graphics point of view, the Australian dollar is currently once again back above parity against the dollar, and its support to see at the previous low of below 0.97 is located near the top of the resistance is located where the previous high of 1.02 near the market outlook is expected, Australian stock market and oil prices helped by the boost, or will remain high and volatile movements.

We see that although China announced on Friday again raised the deposit reserve ratio by 0.5 percentage points for the ninth time since last year, but little effect on the trend for the Australian dollar, the market is widely expected that China's import demand remains strong, short-term the leading role for the Australian economy is still more obvious, before raising the deposit reserve ratio several times also did not much affect the formation of the Australian dollar.

USD / CAD: High: 0.9852 Low: 0.9745 Close price: 0.9782

Canadian dollar closed up yesterday, the U.S. dollar / Canadian dollar back to 0.98 at the bottom. As the recent rebound in global stock markets, the risk of the market will rebound in commodity currencies, the Canadian dollar so get support. Combined with instability caused Libya's international oil prices, but also to some extent, the trend to boost the Canadian dollar. But there is news that the minority government of Canada may encounter mistrust, the market for the spring election in Canada worry that the market may fluctuate, but on the other hand, will be released today, Canadian Finance Minister Jim Flaherty's Budget, the Canadian dollar may be affected Another trend of the risk, then investors can focus on.

Technical graphics point of view, the U.S. dollar / Canadian dollar in the earthquake in Japan fell briefly broke through the channel, the current back to the channel, its resistance to look at the channel top rail is also where the 55-day moving average near 0.9850, while the bottom Support is located near the previous low of 0.97 which, it is expected that afternoon, the Canadian dollar, or will continue to maintain the high and volatile.

USD / JPY: High: 81.33 low: 80.72 close: 81.08

Japanese yen fell for a second day yesterday as investors worried about multinational central bank may take further action to suppress the yen continues to sell. As the host just mentioned, the Western Group of Seven agreed on Friday agreed to in their trading hours to the yen's excessive appreciation in the near future to ensure the orderly nature of the foreign exchange market intervention. Because Japan had a major earthquake and the resulting leakage of Fukushima nuclear power plant accident, insurers and the market speculated that Japanese companies will have to temporarily withdraw from overseas assets to respond to Peifu insurance and post-disaster reconstruction, the yen appeared within a few days a surge in the dollar / yen fell below 80 from the rapidly near the integer 83 mark, and hit a record low 77.16. We know that the world's third largest economy, Japan, its economy is good or bad to a certain extent, the world economy affect the recovery process, in view of the Japanese economy, dominated by the appreciation of Japanese exporters as the yen losses Japan has cut its 2011 GDP forecast year, technical graphics point of view, because the Japanese were closed yesterday, the dollar rose against the yen yesterday, modest, and stabilized in the top 81, is widely expected to line 80 is an important psychological barrier at the same time is also the USD / JPY support the location, the top of the high resistance to see where in the last 83 nearby. Shadow of the nuclear crisis and the joint G7 intervention is expected to exist, the yen is expected to organize short-term trend will be the main shock, finishing in the 80-83 range at between.

This time the Bank of Japan intervention so it can be said for the inevitable. However, Western Group of Seven was able to intervene jointly on this the first time in 10 years. To the effect of intervention, the current see quite successful, the dollar / yen has stabilized at around 81, and the volatility of the yen fell from a high rate, but more long-term impact remains to be seen in the validation. Moreover, as global stock markets rally as investors borrowed yen to start to consider buying risky assets, this carry trade resumption, to some extent, also weighed on the yen's movements.

USD / CHF: High: 0.9075 Low: 0.9009 Close price: 0.9047

Swiss franc on Monday continued losses, seven western countries after the tsunami in Japan suffered a severe foreign exchange market intervention, so that market confidence can be restored to some extent, the beginning of the intervention on Friday, was sharply lower against the euro and Swiss franc against the slightly lower dollar, risk appetite improved, making the safe-haven currency Swiss francs a certain extent suppressed. On the other hand, the Swiss franc has risen to record highs recently, the technology also exists the callback needs. Yesterday, the Swiss money supply in February released the data, shown as an increase of 7.7%, 6.7% higher than the previous month, technical graphics point of view, the USD / CHF is still in the open since February of this year down channel, its Look at the Tongdaoxiagui 0.89 below support near the top of the resistance is located at the previous high of 0.93 near the market outlook is expected, the Swiss franc will remain the trend of strong shocks.

Combined on Thursday, the Swiss central bank has hinted that the recent policy meeting will be to tighten monetary policy, the trend is expected to make the Swiss franc late are subject to certain support.

Gold: High: 1434.70 Low: 1423.19 Close Price: 1425.05

Gold prices finished lower yesterday, after earlier integer used to stand on the 1430 mark, but in the end still end up the star, the recent market risk aversion triggered safe-haven buying pushed up to a certain extent, the price of gold. We see that previous gold sharply lower mainly due to the Japanese stock market crash after the earthquake, caused investors to sell gold to cover losses, but overwhelmed by rising mainly due to further escalation of the situation in the Middle East, technical graphics point of view, the current gold Look below at the previous low support, but also 55,89,100 day moving average where more than around $ 1380, while resistance is at the top of the previous high of $ 1,440 which, given the situation in Japan, earthquakes and Libya short-term change is unlikely to be big, it is expected that the market outlook, upward trend of gold will be the main shock.

Japan nuclear accident has not been significantly improved, the market risk aversion and bargain hunting access, and ultimately makes the price of gold higher again. On the other hand, the U.S. dollar's recent weakness and as the representative of the oil commodity prices also further upstream to provide a kinetic energy of gold. Taking into account the recent risk aversion remains the dominant, gold may still be strong in the short term.