USD Declines vs Most Forex Majors
Daily Review 09/09/2010
Today’s Forex Trading review:
USD Dollar (USD)
The Dollar weakened against the major currencies as risk appetite seemed to push the investors sell the USD and favor other higher yielding currencies. The Stock Markets in U.S. closed positive with Dow Jones and NASDAQ rising by 0.45% and 0.9% respectively. Crude Oil climbed for the first time after 3 days of weakness and closed near the 75$ a barrel. Gold (XAU) declined after reaching a high of 1262.4$ and closed at 1254$ an ounce. Today, the Trade Balance is expected at -47.2B vs. -49.9B previously. The Initial Jobless Claims is expected at 470k vs. 472K previously.
EURO (EUR)
The Euro gained versus the Dollar after an attempt to break the 1.2650 area and soon after recovered to trade back above the 1.27 level. The German Industrial Production came out 0.1% worse than expected 1.1%. Holding above the support level of 1.2670 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.2658 and with a high of 1.2762. Today, the German CPI is expected unchanged at 0%. The French NFP is expected unchanged at 0.2%. The ECB Monthly Report will come out.
EUR/USD – Last: 1.2695
| Resistance | 1.2770 | 1.2820 | |
| Support | 1.2670 | 1.2630 |
British Pound (GBP)
The Sterling soared versus the Dollar reaching 1 week high near 1.5530 zones but failed to hold this level and to trade below the 1.55 levels. The Manufacturing Production came out 0.3% unchanged as expected. The Industrial Production came out 0.3% worse than expected 0.4%. Holding above the support level of 1.5430 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5342 and with a high of 1.5530. Today, the Trade Balance is expected at -7.5B vs. -7.4B previously. The Interest Rate Decision is expected unchanged at 0.5%.
GBP/USD – Last: 1.5460
| Resistance | 1.5485 | 1.5530 | |
| Support | 1.5430 | 1.5380 |
Japanese Yen (JPY)
The USD/JPY pair reached new 15 year low at 83.32 and since then it\’s trading in a narrow range capped under the 84 level. The BSI Large Manufacturing Index came out 13.3 better than expected 6.3. Breaching above the 84 level might turn the momentum to positive for the pair. Overall, USD/JPY traded with a low of 83.64 and with a high of 84.01. Today, the GDP is expected at 0.4% vs. 0.1% previously.
USD/JPY-Last: 83.74
| Resistance | 84.00 | 84.30 | 84.80 |
| Support | 83.35 |
Canadian Dollar (CAD)
Canada\’s Dollar gained versus the U.S Dollar as BOC raised the interest rate by 0.25% from 0.75% to 1% and signaled it may increase them again as the nation’s economy continues to grow. The Ivey PMI came out 65.9 better than expected 55.9 also supporting the CAD. Only breaking the 1.0340 support area might extend the gains for the pair otherwise a rebound could be seen. Overall, USD/CAD traded with a low of 1.0344 and with a high of 1.0507. Today, the Housing Starts are expected at 185K vs. 189K previously. The Trade Balance is expected at -0.8B vs. -1.1B previously.
USD/CAD – Last: 1.0387
| Resistance | 1.0490 | 1.0570 | 1.0670 |
| Support | 1.0340 |
