UFXBank Daily Review - March 2, 2010 | GoLearnForex

UFXBank Daily Review - March 2, 2010

Written by article default Tuesday, 02 March 2010 08:32

Daily Review 2/3/2010

USD Dollar (USD) – The Dollar finished higher against most of the currencies not including commodity linked currencies such as the Canadian and Australian Dollar. Personal Spending data came out better than expected with 0.5% versus 0.4% forecast and ISM Manufacturing Index came out 56.5 worse than 58 expected. Dow Jones gained by 0.76% and NASDAQ jumped by 1.58% after improved outlooks from several large caps. The Crude Oil failed to keep above 80$ and closed at 78.8$ a barrel. The Gold (XAU) finished almost unchanged at 1118.6$ an ounce. No major economic data expected today.

EURO (EUR) – The Euro declined against the Dollar as Greece's debt problems continue to worry investors. The Euro wasn't able to rise despite better than expected employment and manufacturing data. Unemployment rate came out 9.9% vs. 10.1% expected and the Manufacturing PMI came out 54.2 vs. 54.1 expected. EUR/USD has been trading between the 1.3680 resistance and 1.3460 support for almost 10 sessions until major economic surprises occur it is expected to remain in that range. Today, CPI is expected unchanged at 1%.

EUR/USD – Last: 1.354

British Pound (GBP) – The Pound dropped versus the Dollar, falling below 1.5 for the first time in almost 10 months, amid concerns that political uncertainties might delay the efforts to reduce the U.K.’s debt. The Manufacturing PMI came out 56.6 worse than 56.7 expected. GBP/USD is on a clear downtrend and broke right through the 1.50 support level. The pair is in oversold conditions according to the daily RSI, which may lead it to a correction upwards. Overall, GBP/USD traded with a low of 1.4780 and a high of 1.5237. Today, The Nationwide Consumer Confidence is expected at 71 vs. 73 previously.

GBP/USD - Last: 1.494

Japanese Yen (JPY) – The Japanese currency weakened slightly versus the Dollar after another narrow range trading session. The Unemployment rate came out better with 4.9% versus 5.1% forecast. If USD/JPY sustains above 88.70 a move upward toward the 91 resistance could be seen. Overall, USD/JPY traded with a low of 88.69 and with a high of 89.47. Today, Average Cash Earnings are expected at -1.2% vs. -5.9% previously.

USD/JPY-Last: 89.21

Canadian dollar (CAD) – The Canadian Dollar strengthened to the highest level in almost a week versus the Dollar after the GDP report showed the nation’s economy expanded in the 4^th quarter more than economists forecast. GDP came out 0.6% stronger than 0.4% expected. USD/CAD's support is in the areas of 1.04 and 1.0370 and a break below could send it to the 1.02 level. Overall, USD/CAD traded with a low of 1.0408 and with a high of 1.0572. Today, BOC will release its Interest rate decision which is expected unchanged at 0.25%.

USD/CAD - Last: 1.0420