UFXBank Forex News: Euro Stumbles on Sovereign Debt and Strong USD | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro Stumbles on Sovereign Debt and Strong USD

Written by article default Thursday, 06 January 2011 08:16

USD Dollar (USD) – The Dollar strengthened versus most of the major currencies as companies in the U.S. boosted payrolls in December by the most since records began in 2001. The numbers came out at 297K vs. 101k forecast. Moreover, the ISM Manufacturing report that was released came out beating its forecast (57.1 vs. 55.6), and this also continued to support a stronger Dollar during the session. The NASDAQ and Dow Jones strengthened by 0.78% and 0.27% respectively. Crude oil rose by 1.0%, closing at $90.03 a barrel.  Gold (XAU) weakened by 0.4%, closing at $1378.30 an ounce. Today, Unemployment Claims are expected to rise from 388K to 405K.

Euro (EUR) – The Euro weakened in Forex trading versus the Dollar on concern the debt crisis in the euro region will spread to other countries. The EUR/USD is still trading within a negative range, and as long as the rate is bellow 1.3300 levels, a short position is preferred. The next support level on the daily chart is at 1.3050. Overall, EUR/USD traded with a low of 1.3125 and with a high of 1.3325. Today, German Factory Orders are expected to weaken from 1.60% to 1.10%.

EUR/USD – Last: 1.3142

British Pound (GBP) – The Pound weakened against the dollar after a report showed construction in the U.K. declined for the first time in 10 months in December (49.1 vs. 51.1 forecast). The momentum of the GBP/USD has been unclear in the last few days, and as long as the pair is trading below 1.5600 levels, a short position is preferred. The next support level on the four hour chart is at 1.5450. Overall, GBP/USD traded with a low of 1.5450 and with a high of 1.5628. Today, Services PMI is expected at 52.90 vs. 53.00 prior.

GBP/USD - Last: 1.5507

Japanese Yen (JPY) –The Yen weakened the most in three months against the Dollar as reports showed U.S. companies almost tripled the forecast of jobs added in December and services industries grew at the fastest pace since May 2006. The USD/JPY has been trading on a bullish trend during the last few days, and as long as it’s trading above 81.50 levels, a long position is preferred. Overall, USD/JPY traded with a low of 81.88 and with a high of 83.37. No economic data is expected today.

USD/JPY-Last: 83.22

Canadian dollar (CAD) – The Canadian Dollar fluctuated versus the US Dollar after a report showed U.S. companies added almost three times as many jobs as forecast, prompting speculation that the economy of Canada’s largest trading partner is gaining strength. The momentum of the USD/CAD is still bullish, and the next support level on the daily chart is located at 0.9900. If the rate breaks below this level, the pair could decline to 0.9800 levels. Overall, USD/CAD traded with a low of 0.9933 and with a high of 1.0023. Today, Ivey PMI is expected to decline from 57.50 to 52.70.

USD/CAD - Last: 0.9948