UFXBank Forex News: Dollar Weakening on Mixed Data | Learn Forex | GoLearnForex.com

UFXBank Forex News: Dollar Weakening on Mixed Data

Written by article default Thursday, 23 December 2010 08:31

USD Dollar (USD) – The Dollar weakened against most of the major currencies amid concerns raised earlier in the week over Moody's ratings agency putting Portugal’s sovereign debt rating on review. On the same day, there were additional comments from China’s Vice Premier that indicated China would support the European Union debt crisis. The Existing Home Sales came out at 4.68M, worse than the expected 4.75M and the GDP came out at 2.60%, worse than the expected 2.70%. The NASDAQ and Dow Jones strengthened by 0.15% and 0.23% respectively. Crude oil rose by 0.7%, and closed at a 2 years high of $90.48 a barrel. Gold (XAU) fluctuated during the session, at the end closing at $1387.40 an ounce. Today, Core Durable Goods Orders (MoM) are expected at 1.00% vs. -2.70% previously. Initial jobless claim are expected unchanged at 424K and New Home Sales are expected at 303K vs. 283K.

Euro (EUR) – The euro traded near a three-week low against the dollar on speculation that European banks and nations will need to raise more funds, adding to signs that the region’s debt crisis may be prolonged. However, by the end of the day, the euro had strengthened against the green back. 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 1.3078 and with a high of 1.3181. Today, No major economic data is expected today.

EUR/USD – Last: 1.3112

British Pound (GBP) – The Pound weakened against most currencies in Forex trading continuing a trend started after poor data was released earlier in the week. The concerning data showed that British consumer confidence had stayed at a four month low and that Net Government Borrowing rose to 22.8 billion Pounds vs. 16.7 billion prior. The GDP came out at 0.70%, worse than the expected 0.80%. The momentum continues to be bearish for the Pound, and as long the pair remains below 1.5600 levels, 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 1.5356 and with a high of 1.5494. Today, no major economic data is expected.

GBP/USD - Last: 1.5676

Japanese Yen (JPY) –The Yen rose against the Dollar on a one week high after reports showed that U.S. economic growth and existing homes sales increased less than forecast, damping demand for U.S. denominated assets. The USD/JPY has been trading very stable over the last few days, and as long as the pair trades above 83.40 levels, the US Dollar continue to be more attractive. Overall, USD/JPY traded with a low of 83.41 and with a high of 83.85. No economic data expected today.

USD/JPY-Last: 83.16

Canadian dollar (CAD) –The Canadian Dollar rose against the U.S Dollar. Canada’s 10-year notes dropped for the first time in six days, ending the longest winning streak in three months, after a report yesterday showed that gains in inflation slowed. The momentum of the USD/CAD has been bullish over 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 1.0111 and with a high of 1.0177. Today, the GDP (MoM) is expected at 0.30% vs. -0.10%.

USD/CAD - Last: 1.0122