UFXBank Daily Outlook - March 17, 2010 | GoLearnForex

UFXBank Daily Outlook - March 17, 2010

Written by article default Wednesday, 17 March 2010 07:51

Daily Review 17/03/2010

USD Dollar (USD) – The dollar fell against most major currencies as Federal Reserve officials once again kept the main interest rate unchanged, near zero, at 0.25% as predicted by economists. It encouraged demand for riskier assets. Earlier, the Building Permits came out 0.61M better than expected 0.6M. The US stocks rallied with NASDAQ gaining 0.67% and the Dow Jones advanced by 0.41%. The Crude Oil gained 2.5% closing at 82$ a barrel and the Gold (XAU) advanced 1.7% closing at 1127$ an ounce. Today, the PPI is expected at -0.2% vs. 1.4% previously.

EURO (EUR) – The Euro strengthened versus the dollar after European finance ministers worked out a strategy for emergency loans to Greece and advanced more after Fed’s decision to leave rates unchanged. The German ZEW Economic Sentiment came out 44.5 better than expected 43.5 and the CPI came out unchanged as expected at 0.9%. Holding above 1.3730 levels might extend the uptrend till the 1.3860. Overall, EUR/USD traded with a low of 1.3655 and with a high of 1.3783. Today, no economic data is expected.

EUR/USD – Last: 1.3780

British Pound (GBP) – The pound rose against the dollar as the nation’s main stock FTSE 100 Index added 0.5%. Speculations the U.K. will move to reduce its deficit after this year’s elections fueled the optimism. The DCLG House Price Index came out 6.2% better than expected 3.5%. Holding above 1.5230 levels might extend the uptrend till the 1.5380. Overall, GBP/USD traded with a low of 1.4975 and with a high of 1.5258. Today, The Claimant Count Change is expected at 8.5K vs. 23.5K previously. The Average Earnings Index plus Bonus is expected at 1.7% vs. 0.8% previously.

GBP/USD - Last: 1.55240

Japanese Yen (JPY) – The Yen is still trading in a narrow range but posted small gains versus the dollar. The Tertiary Industry Index came out 2.9% better than expected 1.3%. Holding the pair below the 90.50 level might cause to break below 90 levels. Overall, USD/JPY traded with a low of 89.98 and with a high of 90.72. Today, investors are waiting for the rate decision that is expected to remain unchanged at 0.10%.

USD/JPY-Last: 90.22

Canadian dollar (CAD) – Canada’s dollar touched its strongest level in almost two years versus the greenback as the Federal Reserve’s kept the interest rate unchanged. Canada’s dollar also was supported by commodities as Crude Oil and Gold that soared. The Labor Productivity came out 1.4% better than expected 0.7%. The Manufacturing Sales came out 2.4% better than expected 0.7%. Holding the pair below 1.0180 levels keeps the Canadian Dollar with additional potential to add gains. Overall, USD/CAD traded with a low of 1.0134 and with a high of 1.0201. Today, The Wholesale Sales is expected unchanged at 0.7%.

USD/CAD - Last: 1.0140