UFXBank Forex News: Pound Strengthens Versus Euro | Learn Forex | GoLearnForex.com

UFXBank Forex News: Pound Strengthens Versus Euro

Written by article default Tuesday, 21 December 2010 08:32

USD Dollar (USD) – The Dollar was mixed in Forex trading against the other major currencies as concerns over the European sovereign debt crisis and tensions on the Korean peninsula dampened risk appetite. The NASDAQ increased by 0.25% and the Dow Jones weakened by 0.12%. Crude oil rose by 0.9% and closed at $88.81 a barrel.  Gold (XAU) strengthened by 0.5% and closed at $1386.10 an ounce. No major economic data is expected today.

Euro (EUR) – The Euro continued to decline against the Dollar as concerns over the euro zone sovereign debt crisis continued to weigh on the common currency. The EUR/USD has been trading in a negative range over the past few days. Therefore, the momentum is bearish for the euro and the next support level on the daily chart is at 1.3000. Overall, EUR/USD traded with a low of 1.3094 and with a high of 1.3183. Today, GfK German Consumer Climate is expected at 5.70 vs. 5.50 prior.

EUR/USD – Last: 1.3170

British Pound (GBP) – The Pound had a mixed performance yesterday, rising against the Euro and fluctuating versus the Dollar. This performance comes amid growing concerns that European nations will struggle to raise funds and also on statements from the Confederation of British Industry announcing that the Bank of England would start raising interest rates within six months, which gave cause for a positive Pound during the sessions. The momentum of GBP/USD for the past week has been bearish and remains so. As long as the pair is trading below the 1.5600 level, a short position is preferred. The RSI indictor on the daily chart continues to support a downward trend and the next support level on the four hours chart is at 1.5450. Overall, GBP/USD traded with a low of 1.5476 and with a high of 1.5577. Today, Public Sector Net Borrowing is expected to rise from 9.80B to 16.80B.

GBP/USD - Last: 1.5546

Japanese Yen (JPY) – The Yen strengthened versus the Dollar on low volume trading in the run up to the Christmas break. This comes in a climate of heightened risk aversion, which also supports a stronger Yen. The interest rate remained unchanged at 0.10%. As long as the USD/JPY is trading above 83.40 levels, the momentum is positive for the US Dollar. The next resistance level on the one hour chart is located at 84.00, and the next support level is located at the 83.00 level. Overall, USD/JPY traded with a low of 83.63 and with a high of 84.12. Today, there is a BOJ Press Conference.

USD/JPY-Last: 83.77

Canadian dollar (CAD) – The Canadian Dollar fell for a third day versus the US Dollar after Canadian wholesale prices unexpectedly stalled (0.0% vs. 0.8% forecast), fueling concerns that North America’s recovery is fading. The resistance level of the USD/CAD on the four hours chart is located at 1.0200, and if the price breaks above this level, the momentum will continue to be positive for the US Dollar. The 10 moving average supports an upwards trend as well. Overall, USD/CAD traded with a low of 1.0102 and with a high of 1.0209. Today, Core CPI is expected at 0.20% vs. 0.40% prior, and Core Retail Sales are expected to rise from 0.40% to 0.70%.

USD/CAD - Last: 1.0160