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UFXBank Daily Outlook - March 16, 2010
Written by article default Tuesday, 16 March 2010 07:47
Daily Review 16/03/2010
USD Dollar (USD) – The Dollar finished with gains across the board except against the Yen that was favored by risk aversion. Better than expected NY Empire State Manufacturing Index which came out 22.9 vs. expected 22 and the Industrial production that came out 0.1% vs. expected 0% supported the strength of the Dollar. In the U.S Stock Markets, the NASDAQ lost -0.23% and the Dow Jones advanced by 0.16%. Crude Oil tumbled for a second day losing more than 1.5% closing at 79.85$ a barrel. Gold (XAU) advanced and closed at 1108$ an ounce. Today, investors are waiting for the rate decision that is expected to remain unchanged at 0.25%. Building Permits expected at 0.6M vs. 0.62M previously.
EURO (EUR) – The Euro snapped 3 days of gains versus the Dollar as European finance ministers sparred over assistance for Greece, lowering investors appetite for higher yielding assets. Breaking below 1.3640 levels might extend the downtrend till the 1.3520. Overall, EUR/USD traded with a low of 1.3639 and with a high of 1.3783. Today, The German ZEW Economic Sentiment is expected at 43.5 vs. 45.1 previously and the CPI is expected unchanged at 0.9%.
EUR/USD – Last: 1.3692
|
Resistance |
1.3730 |
1.3750 |
1.3785 |
|
Support |
1.3640 |
1.3606 |
1.3540 |
British Pound (GBP) – The Dollar gained against the Pound on speculation of political uncertainty. Holding below 1.1530 levels might extend the downtrend and reach levels below the 1.5. Overall, GBP/USD traded with a low of 1.5017 and with a high of 1.5205. Today, the DCLG House Price Index is expected at 3.5% vs. 2.9% previously.
GBP/USD - Last: 1.5057
|
Resistance |
1.5080 |
1.5130 |
1.5195 |
|
Support |
1.5025 |
1.4985 |
1.4920 |
Japanese Yen (JPY) – The Yen gained against most of the major counterparts helped by a decline in stocks and commodities. Holding the pair below the 90.50 level might cause to break below 90 levels. Overall, USD/JPY traded with a low of 90.35 and with a high of 90.95. Today the Tertiary Industry Index is expected at 1.3% vs. -0.9% previously.
USD/JPY-Last: 90.22
|
Resistance |
90.30 |
90.50 |
90.80 |
|
Support |
89.70 |
89.40 |
88.95 |
Canadian dollar (CAD) – The Canadian Dollar traded near its strongest level against its U.S. counterpart in almost two years but in a tight range. Holding the pair below 1.0230 levels keeps the Canadian Dollar with additional potential to add gains. Overall, USD/CAD traded with a low of 1.0163 and with a high of 1.0230. Today, the Labor Productivity is expected at 0.7% vs. -0.2% previously. The Manufacturing Sales is expected at 0.7% vs. 1.6% previously.
USD/CAD - Last: 1.0190
|
Resistance |
1.0220 |
1.0245 |
1.0320 |
|
Support |
1.0163 |
|
