US Dollar Continues to Rise against Major Currencies
Daily Review 12/08/2010
Today’s Forex Trading review:
USD Dollar (USD) – The dollar made a big rally versus the majors as a slowdown of the global economic recovery pushed the investors to stay on a safe side favoring the greenback on other currencies. The Trade Balance came out -49.9B worse than expected -42.5B. The Federal Budget Balance came out -165B better than expected -167.6B. The Stock Markets in U.S tumbled with Dow Jones losing -2.49% and the NASDAQ fell by -3.01%. Crude Oil crushed by -3.5% closing at 77.3$ a barrel. Gold (XAU) is still fluctuating near the 1200$ zone closing at 1198$ an ounce. Today, the Initial Jobless Claims are expected at 465K vs. 479K previously. The Import Price Index is expected 0.4% vs. -1.3% previously.
EURO (EUR) – The Euro crushed versus the dollar as concerns about another slowdown in economy and rumors that ECB had to buy Irish debt papers fuelled the selling of the European currency. Breaking the support level of 1.2820 will extend the negative momentum for the pair. Overall, EUR/USD traded with a low of 1.2829 and with a high of 1.3185. Today, the ECB Monthly Report will come out and later the Industrial Production is expected at 0.7% vs. 1% previously.
EUR/USD – Last: 1.2882
| Resistance | 1.2920 | 1.2980 | 1.3030 |
| Support | 1.2820 | 1.2750 |
British Pound (GBP) – The Pound slumped against the dollar on risk aversion of the investors as a main trend in the market. The Claimant Count Change came out -3.8k worse than expected -17.4k. Breaking the support level of 1.5620 will extend the negative momentum for the pair. Overall, GBP/USD traded with a low of 1.5612 and with a high of 1.5861. No economic data is expected today.
GBP/USD – Last: 1.5677
| Resistance | 1.5680 | 1.5750 | 1.5780 |
| Support | 1.5620 | 1.5560 |
Japanese Yen (JPY) – The Yen gained across the board as concern the global economic recovery is moving a pace down spurred demand for the safest assets favoring the Japanese currency. The pair fell to fresh low level of 84.71 and since fluctuating near the 85 zone. Holding below the resistance level of 85.40 keeps the momentum negative for the pair. Overall, USD/JPY traded with a low of 84.71 and with a high of 85.45. No major economic data is expected today.
USD/JPY-Last: 85.12
| Resistance | 85.40 | 85.70 | 86.00 |
| Support | 84.80 |
Canadian dollar (CAD) – Canada’s dollar dropped to the lowest level against the dollar in almost 3 weeks as commodities and stocks tumbled on concern of recovery in the U.S. will be slower. The Trade Balance came out -1.1B worse than expected 0.4B. Holding above the support level of 1.04 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 1.0302 and with a high of 1.0487. No economic data is expected today.
USD/CAD – Last: 1.0463
| Resistance | 1.0500 | 1.0580 | |
| Support | 1.0400 | 1.0300 |
