UFXBank Daily Review - March 4, 2010 | GoLearnForex

UFXBank Daily Review - March 4, 2010

Written by article default Thursday, 04 March 2010 08:00

Daily Review 4/3/2010

USD Dollar (USD) – The Dollar weakened versus all 16 majors after Greece's budget package was announced and the Fed released a bearish outlook for the economic recovery. ADP Non Farm Employment Change came out worse with -20K versus -15K expected. ISM Non Manufacturing PMI came out stronger with 53 versus 51 expected. NASDAQ and Dow Jones finished almost flat after trading in new one month highs led by the materials sector. The gains in stocks weren't able to sustain as the Fed signaled a slow recovery, despite improved economic activity. Crude Oil gained by 1.49% closing at 80.87$ a barrel. Gold (XAU) gained by 0.52% closing at 1,143.3$ an ounce. Today, Unemployment Claims are expected lower with 472K versus 496K prior. Pending Home Sales are expected with 1.4% versus 1% prior.

EURO (EUR) –The Euro gained versus the Dollar after Greece announced measures to cut spending and raise taxes. The Euro is dominated by investors' debt fears and any announcements regarding Spain and Portugal's debt could lead to great volatility. Overall, EUR/USD traded with a low of 1.3593 and a high of 1.3735. EUR/USD has jumped from the 1.3450 support and is heading toward the 1.38 resistance after rising from oversold conditions. Today, ECB is expected to leave the Interest Rate unchanged at 1% and will hold a Press Conference following the decision.

EUR/USD - Last:  1.37

British Pound (GBP) – The Pound gained versus the Dollar as better economic data was released and Greece's debt uncertainty lowered. Services PMI came out stronger with 58.4 versus 55 expected. Investors are eyeing today's rate decision. Overall, GBP/USD traded with a low of 1.4975 and a high of 1.5131. GBP/USD has started retracing upwards after reaching oversold conditions. A continuance of the Pound's move upwards could lead it to 1.54. Today, BOE will announce the Interest Rate Decision which is expected unchanged with 0.5%. QE announcement is also expected unchanged with 200B.

GBP/USD - Last:  1.51

Japanese Yen (JPY) –The Yen gained versus the Dollar after bearish comments from the Fed signaling a slower recovery. Overall, USD/JPY traded with a low of 88.32 and a high of 88.99. USD/JPY is on a clear downtrend, facing support at 88 and almost getting oversold according to the daily RSI. No economic data expected today.

USD/JPY-Last: 88.6

Canadian Dollar (CAD) – The Canadian Dollar gained for the 4^th straight day versus the Dollar as commodities advanced and speculations BOC will raise its interest rates before the Fed rose. Overall, USD/CAD traded with a low of 1.0274 and a high of 1.0362. USD/CAD has continued downwards and is near oversold RSI conditions and yearly lows at 1.02 which is expected to hold as a strong support. Today, Building Permits are expected with 1% versus 2.4% prior. Ivey PMI is expected higher with 56 versus 50.8 prior.

USD/CAD - Last:  1.032