UFXBank Daily Outlook - March 10, 2010 | GoLearnForex

UFXBank Daily Outlook - March 10, 2010

Written by article default Wednesday, 10 March 2010 08:00

Daily Review 10/3/2010

USD Dollar (USD) – The Dollar gained versus the Euro and the Pound and weakened versus the high yielding commodity linked currencies. Stock markets finished higher but weak fundamentals and fears across Europe helped the Dollar to gain. NASDAQ and Dow Jones gained by 0.36% and 0.11% respectively. Crude Oil weakened by -0.46% closing at 81.49$ a barrel. Gold (XAU) weakened by -0.14% closing at 1,122$ an ounce. Today, Federal Budget Balance is expected with -199.5B versus -42.6B prior. Crude Oil Inventories will be released and volatility in Crude prices is expected.

EURO (EUR) –The Euro weakened versus the Dollar after lower than expected CPI data in Switzerland contributed to the assessments that the next rate hike in Europe will be at 2011 and not sooner. Overall, EUR/USD traded with a low of 1.3537 and a high of 1.3635. EUR/USD is still trading in a daily channel between 1.3780 and 1.3450 waiting for a catalyst to break out of this range. Today, French Industrial Production is expected with 0.3% versus -0.1% prior. ECB President Trichet will speak in Frankfurt.

EUR/USD - Last:  1.36

British Pound (GBP) – The Pound declined versus all of the 16 major currencies after Fitch Ratings said U.K debt problems are worsening. Trade Balance came out worse with -8B versus -6.9B expected. Concerns about a possible minority government in the upcoming elections in the U.K this year helped drag the Pound lower. Overall, GBP/USD traded with a low of 1.4935 and a high of 1.5043. GBP/USD is on a bearish trend and near daily oversold RSI conditions. Today, Manufacturing Production is expected with 0.3% versus 0.9% prior. NIESR GDP Estimate will be released, prior was 0.4%.

GBP/USD - Last:  1.4980

Japanese Yen (JPY) –The Yen gained versus the Dollar and most other majors on estimations better earnings from Japanese companies will be reported at the end of the nation's fiscal year at the end of March. Core Machinery Orders came out slightly better than expected with -3.7%. Overall, USD/JPY traded with a low of 89.63 and a high of 90.31. USD/JPY has retraced after touching resistance at the 50 period daily moving averages near 90.6 and continues lower. Today, Final GDP is expected with 1% versus 1.1% prior.

USD/JPY-Last: 89.95

Canadian Dollar (CAD) – The Canadian Dollar continued gaining versus the Dollar reaching a 7 week high, after stocks kept advancing and Crude continued trading above 80$ a barrel. Overall, USD/CAD traded with a low of 1.0236 and a high of 1.0320. USD/CAD has been trading near yearly lows at 1.02. The downtrend is slowing down and could head to a reversal upwards. No major economic data expected today in Canada but Crude Inventories could have an effect on the currency.

USD/CAD - Last:  1.0270