UFXBank Forex News: Dollar Rises as Debt Concerns Loom in Europe | Learn Forex | GoLearnForex.com

UFXBank Forex News: Dollar Rises as Debt Concerns Loom in Europe

Written by article default Thursday, 16 December 2010 08:24

USD Dollar (USD) – The dollar gained versus most of the major currencies in Forex trading as a possible downgrade of Spain's credit rating pushed investors to the safety of the greenback. The Core CPI came out unchanged at 0.1% as expected. The Stock Markets in the U.S. closed negative as the Dow Jones lost -0.17% and the NASDAQ fell by -0.4%. Crude Oil has been difficult to determine a further trend for, as it has been fluctuating around $88.40 a barrel for the last 8 trading sessions. Gold (XAU) declined by -1.3% and came back to trade at $1380 an ounce. Today, the Building Permits are expected at 0.57M vs. 0.55M previously. Housing Starts are expected to come out at 0.55M vs. 0.52M previously. The Initial Jobless Claims are expected to come out at 425k vs. 421k previously. The Philadelphia Fed Manufacturing Index is expected at 14.1 vs. 22.5 previously.

Euro (EUR) – The euro fell against the Dollar as debt concerns in the euro zone keep hitting the market, and this time, Spain's credit rating downgrade was the focus. The Employment Change came out at 0%, worse than the expected 0.2%. The critical support level rests at 1.3170 areas, and breaking this level will push the euro back to 1.3 zones, otherwise a rebound to the 1.34 zone is possible. Overall, EUR/USD traded with a low of 1.3208 and with a high of 1.3380. Today, The French PMI is expected at 58 vs. 57.9 previously. The German Manufacturing PMI is expected at 58.2 vs. 58.1 previously. The Manufacturing PMI is expected unchanged at 55.3 and the CPI is expected unchanged at 1.9%.

EUR/USD – Last:  1.3211

British Pound (GBP) – The Pound was crushed against the Dollar, as worse than expected UK employment data and the euro zones debt crisis, created cause for risk aversion among investors. The Claimant Count Change came out at -1.2k, worse than the expected -3k. For further decline to occur in the pair the 1.55 support area has to break, otherwise, a rebound to 1.57 zones is possible. Overall, GBP/USD traded with a low of 1.5528 and with a high of 1.5773. Today, Retails Sales are expected unchanged at 0.5%.

GBP/USD - Last: 1.5550

Japanese Yen (JPY) – The dollar gained versus the Yen for the second day in a row as the USD/JPY pair once again approached the 88.4 critical resistance level. Breaching this area will take the pair above the 85 zone, or otherwise, it will fall back to 83 areas. Overall, USD/JPY traded with a low of 83.58 and with a high of 84.49. No economic data is expected today.

USD/JPY-Last: 84.26

Canadian dollar (CAD) - The Canadian dollar rallied against most of its major counterparts as the Manufacturing Sales came out at 1.7%, better than the expected 1.1%, and completed its sixth consecutive day of strength versus the dollar. Only breaking the critical support level of 0.9980 will push the par lower, otherwise, a rebound above 1.01 is possible. Overall, USD/CAD traded with a low of 1 and with a high of 1.0930. Today, The Foreign Securities Purchases are expected at 10.97B vs. 12.25B previously.

USD/CAD - Last: 1.0041