UFXBank Daily Outlook - March 5, 2010 | GoLearnForex

UFXBank Daily Outlook - March 5, 2010

Written by article default Friday, 05 March 2010 11:54

Daily Review 5/3/2010

USD Dollar (USD) – The Dollar gained versus most majors after better than expected Unemployment Claims were released and investor's expectations toward the NFP figures today rose. Unemployment Claims came out with 469K versus 472K expected. Pending Home Sales plunged by -7.6% versus 1.4% expected. NASDAQ and Dow Jones gained by 0.51% and 0.45% respectively. Crude Oil weakened by -0.82% closing at 80.21$ a barrel. Gold (XAU) weakened by -0.89% closing at 1,133.1$ an ounce. Today, Non Farm Payrolls are expected to show a decrease of -40K versus -20K prior. Unemployment Rate is expected worse with 9.8% versus 9.7% prior.

EURO (EUR) –The Euro fell versus the Dollar and 11 more majors after ECB President Trichet expressed his opposition to the IMF's Aid to Greece. ECB kept the Interest Rate unchanged at 1% as expected. Overall, EUR/USD traded with a low of 1.3551 and a high of 1.3712. EUR/USD was unable to make new highs and fell back downwards. The pair is trading in a daily channel between 1.3780 and 1.3450. Today, German Factory Orders are expected better with 1.6% versus -2.3% prior.

EUR/USD - Last:  1.3595

British Pound (GBP) – The Pound weakened versus the Dollar after better than expected Employment data in the U.S and no changes in BOE's policy were announced. BOE kept the Interest Rate unchanged with 0.5% and stated that the 200B spent so far in the QE program might not be enough to prevent further deterioration. Overall, GBP/USD traded with a low of 1.5005 and a high of 1.5136. GBP/USD has turned back downwards after not being able to rise above the previous day's resistance. The main trend is bearish but the pair is still in oversold conditions. Today, PPI Input and Output are expected lower with 0.1% and 0.2% respectively.

GBP/USD - Last:  1.5055

Japanese Yen (JPY) –The Yen fell versus the Dollar after better than expected Unemployment Claims were released in the U.S. Investors are expecting the NFP data that will come out in the U.S today to see if it will support Risk Aversion and the Yen. Overall, USD/JPY traded with a low of 88.14 and a high of 89.25. USD/JPY has bounced after reaching close to the support at 88. The pair is facing a major resistance at 89.5 and the main trend is still downwards. No economic data expected today.

USD/JPY-Last: 89.25

Canadian Dollar (CAD) – The Canadian Dollar remained little changed versus the Dollar after Building Permits and Ivey PMI both showed surprising contractions. 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. No economic data expected today.

USD/CAD - Last:  1.0305