UFXBank Daily Outlook - March 18, 2010 | GoLearnForex

UFXBank Daily Outlook - March 18, 2010

Written by article default Thursday, 18 March 2010 07:36

Daily Review 18/03/2010

USD Dollar (USD) – The Dollar weakened against most majors after Wholesale prices in the U.S. fell in February more than anticipated and U.S. central banks pledged to keep interest rates near zero.  NASDAQ and Dow Jones advanced by 0.45% and 0.47% respectively, Crude Oil rose by 1.5% closing at 82.92$ a barrel, Gold(XAU) increased  by 0.14% closing at 1124.1$ an ounce. Today, Core CPI is expected to rise from -0.1% to 0.1%, Unemployment Claims are expected at 456K vs. 462K prior, Philly Fed Manufacturing Index is expected to remain at 17.6.

EURO (EUR) – The Euro declined from a five-week high versus the Dollar after a spokesman for German Chancellor Angela Merkel’s party said Greece should go to the International Monetary Fund if it needs aid, lowering chances of aid from the EU. If EUR/USD breaks above the resistance at 1.3820 levels a long position is preferred. Overall, EUR/USD traded with a low of 1.3726 and with a high of 1.3818.Today, Current Account is expected to rise from 1.9B to 2.9B, Trade Balance is expected at 5.1B vs. 7.0B prior.

EUR/USD – Last: 1.3719

British Pound (GBP) – The Pound advanced against the Euro and the Dollar after a report showed U.K. jobless claims unexpectedly fell in February. Claimant Count Change came out at -32.3K vs.8.2K forecast. The downtrend on the GBP/USD is slowing and a reversal upwards has started. Overall, GBP/USD traded with a low of 1.5208 and with a high of 1.5382.Today, Public Sector Net Borrowing is expected at 14.6B vs. 4.3B prior, MPC Member Sentence will speak.

GBP/USD - Last: 1.5301

Japanese Yen (JPY) –The Yen weakened against most majors after the Japanese and U.S. central banks pledged to keep interest rates near zero, boosting demand for stocks and higher-yielding currencies. BSI Manufacturing Index came out worse than the forecast, 4.3 vs. 15.3. The USD/JPY is trapped between 90.0 - 91.0 levels and there isn't a clear trend. Overall, USD/JPY traded with a low of 90.03 and with a high of 90.71.Today, BOJ Monthly Report will be released.

USD/JPY-Last: 90.21

Canadian dollar (CAD) – The Canadian Dollar reached its strongest level in almost 20 months versus the Dollar after the Federal Reserve said it would keep interest rates near zero, spurring demand for currencies tied to economic growth. Moreover, Canadian wholesale sales rose at the fastest pace in 3 years in January with 3.0% vs. 0.6% forecast. Canadian Prime Minister Harper said the government is concerned about the Canadian Dollar reaching parity with the U.S Dollar, as the Canadian Dollar is getting "too strong". The USD/CAD has been trading downwards since February. As long as the pair is below 1.0350 a short position is preferred. Overall, USD/CAD traded with a low of 1.0071 and with a high of 1.0143. Today, Foreign Securities Purchases are expected at 7.75B vs. 11.23B prior.

USD/CAD - Last: 1.0112