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UFXBank Forex News: Euro Weakens to 4-Month Low vs. USD

Written by article default Monday, 10 January 2011 06:35

USD Dollar (USD) – The Dollar weakened against most of the major currencies after the Non-farm Payrolls came out at 103K, worse than the expected 150K. The NASDAQ fell by 0.25% and the Dow Jones weakened by 0.19%. Crude oil rose by 12 cents and closed at $88.45 a barrel. Gold (XAU) weakened by 0.2%, and closed at $1368.90 per ounce. Today, no major economic data is expected.

Euro (EUR) – The Euro weakened to a four month low against the Dollar after the Unemployment Rate came out as forecast (10.10%). The pair broke down the strong support level of 1.30 last Friday and stopped at the next support level of 1.2900. The momentum of the EUR/USD is strongly bearish, and as long as the rate is below 1.3050 levels, a short position is preferred. Overall, EUR/USD traded with a low of 1.2859 and with a high of 1.2909. Today, ECB President Trichet Speaks.

EUR/USD – Last: 1.2909

British Pound (GBP) – The Pound rose against the dollar in Forex trading after the Non-farm Payrolls in the U.S came out worse than expected. The main support line of the GBP/USD is 1.5400, and if the rate breaks below this level, the pound could decline to 1.5200, or even lower. Overall, GBP/USD traded with a low of 1.5404 and with a high of 1.5578. Today, the Halifax House Price Index (MoM) is expected at -0.30% vs. -0.10% prior.

GBP/USD - Last: 1.5546

Japanese Yen (JPY) –The Yen rose against the dollar after the Non-farm Payrolls in the U.S. came out worse than expected. The USD/JPY is still in a bullish trend according to the daily chart and now that we are in a second shoulder, it means we are expecting another few days of bearish momentum before returning to a bullish trend. As long it’s trading above 82.50 levels, a long position is preferred. Overall, USD/JPY traded with a low of 82.91 and with a high of 83.68. No economic data is expected today.

USD/JPY-Last: 83.09

Canadian dollar (CAD) – The Canadian Dollar rose against most of the majors after it reached parity with the U.S dollar during the European session. The Employment Change  and the Unemployment Rate  came out better than expected last Friday and the next support level on the daily chart is still located at 0.9900. If the rate breaks below this support level, the US Dollar will be more attractive. Overall, USD/CAD traded with a low of 0.9899 and with a high of 1.0002. Today, Building Permits (MoM) are expected at 0.80% vs. -6.50% prior.

USD/CAD - Last: 0.9938