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UFXBank Forex News: Pound Weakens on Poor Data

Written by article default Wednesday, 22 December 2010 08:11

USD Dollar (USD) – The Dollar was mixed in Forex trading against the other major currencies, amid fresh concerns over the European sovereign debt crisis after Moody's ratings agency put Portugal’s sovereign debt rating on review. This, in addition to comments made earlier in the day by China’s Vice Premier, which indicated that China would support the European Union debt crisis, caused the Dollar to be mixed. The NASDAQ and Dow Jones strengthened by 0.68% and 0.48% respectively. Crude oil rose by 0.4%, closing at $89.92 a barrel. Gold (XAU) fluctuated during the session, and in the end, closed approximately to $1386.00 an ounce. Today, Final GDP is expected to increase to 2.70% vs. 2.50% prior. Existing Home Sales are expected to rise from 4.43M to 4.65M.

Euro (EUR) – The Euro fluctuated versus the Dollar after Chinese Vice Premier, Wang Qishan, said his nation had taken “concrete action” to help the European Union with its debt problems. The EUR/USD is still trading in a negative range, and therefore the momentum is bearish for the euro. The next support level on the daily chart is at 1.3000 levels, and both the RSI and the 10 moving average support a negative momentum. Overall, EUR/USD traded with a low of 1.3073 and with a high of 1.3201. Today, No major economic data is expected today.

EUR/USD – Last: 1.3130

British Pound (GBP) – The Pound weakened against most currencies as a survey showed that British consumer confidence stayed at a four month low and that Net Government Borrowing rose to 22.8 billion Pounds vs. 16.7 billion prior. The momentum continues to be bearish for the Pound, and as long as the pair is trading below the 1.5600 level, a short position is preferred. The next support level on the daily chart is at 1.5300. Overall, GBP/USD traded with a low of 1.5436 and with a high of 1.5568. Today, Current Accounts are expected at -8.1B vs. -7.4B prior, MPC Meeting Minutes will be read, and Final GDP is expected to remain at 0.80%.

GBP/USD - Last: 1.5470

Japanese Yen (JPY) –The Yen continued to rise against the Dollar, touching a 1-week high, amid speculation that Japanese exporters bought the currency to bring home funds before the end of the year. The USD/JPY has been trading very stable over the last few days and as long as it’s trading above 83.40 levels, the US Dollar continues to be more attractive. Overall, USD/JPY traded with a low of 83.50 and with a high of 83.90. No economic data is expected today.

USD/JPY-Last: 83.69

Canadian dollar (CAD) – The Canadian Dollar extended its loss versus the US Dollar, as a government report showed consumer prices advanced in November from a year ago less than economists had forecast(0.1% vs. 0.3% forecast). The momentum of the USD/CAD has been bullish in the last few days and the next resistance level is located at 1.0200. 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 1.0151 and with a high of 1.0206. No economic data is expected today.

USD/CAD - Last: 1.0171