varengoldbankfx daily fx report_20141010.pdf

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www.varengoldbankfx.com Promotional Document

Friday, October 10, 2014

Good morning from beautiful Hamburg and welcome to our last Daily FX Report for this week.Islamic State fighters seized more than a third of the Syrian border town of Kobani, a monitoring

group said on Thursday, as U.S.-led air strikes failed to halt their advance and Turkish forces

looked on without intervening. With Washington ruling out a ground operation in Syria, Turkey

said it was unrealistic to expect it to mount a cross-border operation alone to relieve the mainly

Kurdish town.

Anyway, we wish you a successful trading day and a relaxing weekend!

Market Review Fundamental Perspective

Investors have long believed that a solid U.S. recovery will eventually help lift many other

sluggish economies around the world, including those in Europe. But now there is growing fear

that the U.S. economy cannot escape unscathed when Europe is stalling and many other big

economies, including China, Japan and Brazil, face their own hardships. The latest shock came

from Germany, which reported on Thursday that its exports fell 5.8 percent in August, the worst

decline since January 2009. While U.S. Federal Reserve policy makers start to raise concerns

that the recetns dollar strenght may impact growth, the Bank of Japan is banking on policies

designed to weaken the yen for boosting its economy.

As stocks declines and signs of a overall global slowdown boosted demand for haven assets,

the yen was set for gains against most of its 16 major peers this week. The yean headed for its

biggest weekly advance in almost nine months versus the dollar. It touched 107.53, which was

the strongest level since Sep. 17. The euro stayed on the back foot after the weak German data.

It had reached a 2-1/2 week high of $1.2791 per euro early on Thursday, but beat a hasty retreat

and was last trading at $1.2688.

Unsurprisingly, commodity currencies were among the hardest hit with the Australian dollar

sliding back below 88 U.S. cents from near 89 cents. It last traded at $0.8764. Its New Zealand

peer fell back to $0.7861 from a two-week high of $0.7975, while the Canadian dollar dipped to

C$1.1187 per USD from C$1.1082.

Concerns about global economic growth hit oil prices hard, with Brent oil prices falling to $89.24

a barrel, its lowest level since mid-2012. U.S. crude futures traded at $84.68, having fallen to

$84.06 on Thursday, its lowest level in almost two years.
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Daily Technical AnalysisEUR/USD (Daily)

After reaching the resistance level at 1.3693 in the end of June, the EUR experienced a sharp

decline against the USD. As we already said on Monday, the currency pair experienced a further

decline and was even able to break through the previous support level of 1.2889. At the moment

the EUR is experiencing a light recovery and both indicators support the evidence that the

recovery phase may hold for a while.

Support & Resistance (Daily)

Support Levels around Resistance Levels around

1.2841 1.3693

N/A 1.3419

N/A N/A
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AUD/NZD (Daily)

After reaching the support level at 1.0642, the currency pair experienced an appreciation untill it

reached the resistance level at 1.1277 where we saw a reversal. At the moment the pair isexperiencing a downward movement which may hold for a while as the indicators are indicating

a further depreciation of the Australian dollar.



1.1127 1.1277

1.0932 N/A

1.0766 N/A


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USD/JPY (Daily)

Since the end of August, the USD was able to appreciate against the JPY and rose from the

support line of 101.13 to the resistance level of 109.88. Since the resistance level at 109.88

seems to be hard to break and the yen was able to appreciate especially during the last week,

we may see a further recovery of the Japane`s currency or at least a sideward movement.



101.80 109.88

101.13 N/A

N/A N/A


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Daily Calendar & Key Events

Date Time (GMT) Economic Indicator Last Survey

10/10/2014 06:45 FR Industrial Production MoM 0.2% -0.3%

10/10/2014 06:45 FR Industrial Production YoY 0.1% -10.0%

10/10/2014 06:45 FR Manufacturing Production MoM -0.3% 0.0%

10/10/2014 06:45 FR Manufacturing Production YoY 0.2% -0.7%

10/10/2014 08:00 IT Industrial Production MoM -1.0% 0.5%

10/10/2014 08:00 IT Industrial Production WDA YoY -1.8% -0.1%

10/10/2014 08:30 UK Trade Balance -3000 -3348

10/10/2014 12:30 CA Unemployment Rate 7.0% 7.0%

10/10/2014 12:30 CA Net Change in Emoloyment -11.0K 20.0K

10/10/2014 12:30 US Import Prie Index MoM -0.9% -0.7%

If you have any questions, please contact us for further assistance. 24 hours a day:

German: +49 40 66 86 49 96

English: +49 40 66 86 49 96

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DISCLAIMERIMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THISPROMOTIONAL DOCUMENTThis document Daily FX Report is a promoti onal document and is created and published by VarengoldBank AG. This Promotional document serves exclusively for information purposes. It is exclusively aimedat German business partners and customers who make their own investment decisions at their own risknotwithstanding the contents of this promotional document. Investment decisions should be made on thebasis of a preceding consultation with an independent financial advisor and prospectus, but not on thebasis of this promotional document.Depending on the individual investor's investment goals, investment horizon or financial situation, thecontents of the present promotional document may not be suitable at all or only in part. This promotionaldocument is not aimed at persons with residence and / or place of business and / or branches abroad,particularly in the United States of America, Canada, Japan or Great Britain. This promotional document is

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