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UFXBank Forex News: Euro Weakens on USD Rebound

Written by article default Wednesday, 05 January 2011 07:59

USD Dollar (USD) – The Dollar was up against most of the major currencies in Forex trading after official data showed that orders placed with U.S. factories unexpectedly rebounded in November (came at 0.7% vs. -0.1% forecast). In addition, during the meeting of the Committee of the Federal Reserve, it was said that improvements in the economy didn’t meet the threshold for scaling back their plans to purchase $600 billion in bonds. The NASDAQ weakened by 0.38% and the Dow Jones rose by 0.18% respectively, Crude oil weakened by 2.4%, and closed at $89.38 a barrel. Gold (XAU) fell by 3.1%, the lowest rate during the past three weeks, and closed at $1378.80 an ounce. Today, the ADP Non-Farm Employment Change is expected to rise from 93k to 100k, and ISM Non-Manufacturing PMI is expected at 55.7 vs. 55.0 prior.

Euro (EUR) – The Euro weakened versus the Dollar after better that expected data from the US and a weakening of commodities during the session, led investors to prefer a safety investment like the Dollar. The EUR/USD will trade on a negative range as long as the rate is bellow 1.3450 levels. The next support level on the one hour chart is at 1.3250. Overall, EUR/USD traded with a low of 1.3291 and with a high of 1.3434. Today, Industrial New Orders are expected to be positive at 1.60% vs. -4.20% prior.

EUR/USD – Last: 1.3286

British Pound (GBP) – The Pound strengthened against the Dollar and the Euro as reports showed that U.K. manufacturing expanded at the fastest pace in 16 years in December. The report came out at 58.3 vs. 57.3 forecast. The momentum of the GBP/USD has been unclear over the last few days, and as long as the pair is trading below 1.5650 levels, a short position is preferred. The next support level on the one hour chart is at 1.5450. Overall, GBP/USD traded with a low of 1.5454 and with a high of 1.5645. Today, the Construction PMI is expected at 51.20 vs. 51.80.

GBP/USD - Last: 1.5569

Japanese Yen (JPY) –The Yen weakened to a four day low against the Dollar as strong Japanese share prices weighed in, boosting demand for higher yielding assets. The USD/JPY has been trading on a bullish trend during this past two days. As long as the pair is trading above the 81.50 level, the US Dollar continues to be more attractive. Overall, USD/JPY traded with a low of 81.61 and with a high of 82.28. No economic data is expected today.

USD/JPY-Last: 82.11

Canadian dollar (CAD) – The Canadian Dollar fell for the first time in 10 days versus the Dollar after crude oil, the nation’s largest export, dropped below $90 a barrel and drifted the Canadian along with it. The momentum of the USD/CAD has been bullish over the last three weeks, and the next resistance level on the daily chart is located at 1.0020. If the rate breaks above this level, the pair could strength to 1.0100-1.0150 levels .Overall, USD/CAD traded with a low of 0.9916 and with a high of 1.0034. No important data is expected today.

USD/CAD - Last: 0.9995