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UFXBank Forex News: Dollar Weakens on Fed Concerns

Written by article default Tuesday, 11 January 2011 08:32

USD Dollar (USD) – The Dollar weakened against most of the major currencies of Forex trading after a Federal Reserve official sounded concerned about the strength of the U.S. economic recovery.  The NASDAQ rose by 0.17% and the Dow Jones weakened by 0.32%. Crude oil rose by 1.4% and closed at $89.25 a barrel. Gold (XAU) gained by 0.4%, closing at $1374.10 an ounce. Today, no major economic data is expected.

Euro (EUR) – The Euro rose against the Dollar as a correction for being oversold the last 4 days. The pair still traded below the resistance area of 1.30. The momentum of the EUR/USD is strongly bearish, and as long as the rate is below 1.3000 levels, a short position is preferred. Overall, EUR/USD traded with a low of 1.2859 and with a high of 1.2965. Today, no major economic data is expected.

EUR/USD – Last: 1.2940

British Pound (GBP) – The Pound rose against the dollar after the NFP in the U.S came out worse than expected. The pair is still trading in last month’s range (1.59-1.53). The main support line of the GBP/USD is 1.5400, and breaking the 1.5650 levels will take the pair toward 1.5800. Overall, GBP/USD traded with a low of 1.5473 and with a high of 1.5601. Today, no major economic data is expected.

GBP/USD - Last: 1.5554

Japanese Yen (JPY) –The Yen rose against the dollar after a worse than expected NFP was released in the U.S. The momentum is bearish according to the hourly chart, and indicators are turning flat below their midlines while bigger time frames show a stronger downward momentum. Below 82.40, stops should be building. Therefore, the break of that area should extend the fall towards the 81.80 price zone. As long as it’s trading above 82.50 levels, a long position is preferred. Overall, USD/JPY traded with a low of 82.65 and with a high of 83.27. No economic data is expected today.

USD/JPY-Last: 83.04

Canadian dollar (CAD) – The Canadian Dollar fell against the U.S Dollar after the Building Permits (MoM) came out -11.20%, worse than the expected 0.80%. The next support level on the daily chart is still located at 0.9900. According to the 1 hour chart, the trend looks bearish for today. Overall, USD/CAD traded with a low of 0.9982 and with a high of 0.9910. Today, no major economic data is expected.

USD/CAD - Last: 0.9940