UFXBank Forex News: Euro Falls on Debt Concerns | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro Falls on Debt Concerns

Written by article default Monday, 20 December 2010 08:37

USD Dollar (USD) – The Dollar rose against the other major currencies as Treasury yields reached a seven month high on stronger than forecast economic data, and concern that Europe’s debt crisis will spread, boosted demand for the U.S. currency. The NASDAQ increased by 0.21% and the Dow Jones weakened by 0.06%. Crude oil rose by 52 cents and closed at $88.22 a barrel. Gold (XAU) strengthened by 0.3% and closed at $1374.90 an ounce. No economic data is expected today.

Euro (EUR) – The Euro dropped to a two week low against the dollar on concern that an agreement reached at the European Union summit this week won’t contain the region’s debt problems. The next support of the EUR/USD on the one hour chart is 1.3130, and if the pair breaks below this rate, the euro will continue with its negative trend. Overall, EUR/USD traded with a low of 1.3133 and with a high of 1.3359. Today, Current Accounts are expected to decline from -13.10B to -6.20B, and German PPI is expected at 0.30% vs. 0.40% prior.

EUR/USD – Last: 1.3140

British Pound (GBP) – The Pound weakened versus the Dollar on Friday as European debt concern, and the good Treasury result, supported a weaker pound. The momentum of GBP/USD in the past week has been bearish, and as long as the pair is trading below 1.5600 levels, a short position is preferred. The RSI indictor on the daily chart also supports a downward trend. Overall, GBP/USD traded with a low of 1.5454 and with a high of 1.5647. No major economic data is expected today.

GBP/USD - Last: 1.5508

Japanese Yen (JPY) –The Yen was stable versus the Dollar as the greenback strengthened owing to good data from the Treasury and Europe’s debt crisis, both of which caused investors to prefer safety assets. As long as the USD/JPY is trading above 83.50 levels, a long position is preferred, and the next resistance level is located at 84.50. Overall, USD/JPY traded with a low of 83.69 and with a high of 84.20. No economic data is expected today.

USD/JPY-Last: 83.92

Canadian dollar (CAD) – The Canadian Dollar fell to a two week low versus the US Dollar in a day of Forex trading, as concern that Europe’s debt crisis will broaden, damped investors’ risk appetite. This and U.S. Treasury yields reaching a near seven month high, made the U.S. currency far more attractive. The resistance level of the USD/CAD on the four hour chart is located at 1.0150, and if the price breaks above this level, the momentum will continue to be positive for the US Dollar. Overall, USD/CAD traded with a low of 1.0037 and with a high of 1.0146. Today, Wholesale Sales are expected to rise from 0.40% to 0.70%.

USD/CAD - Last: 1.0130