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UFXBank Forex News: Portuguese Bonds Slow Down the Dollar

Written by article default Thursday, 13 January 2011 08:18

USD Dollar (USD) – The Dollar lost gains across the board in Forex trading as positive news coming out of Europe pushed investors to buy higher yielding assets and drop the greenback. The Import Price Index came out at 1.1%, worse than the expected 1.2%. The Stock Markets in the U.S. closed positive for another day as the Dow Jones gained 0.72% and the NASDAQ rose by 0.75%. Crude Oil posted a fourth day of gains as it appreciated by 0.8%, ending the day close to $92 a barrel. Gold (XAU) also made gains, closing at $1387 an ounce. Today, Initial Jobless Claims are expected at 415k vs. 409k previously, the PPI is expected at 0.7% vs. 0.8% previously, the Trade Balance is expected at -40.6B vs. -38.7B previously, and the Fed is expected to Speak.

Euro (EUR) – The Euro rose against the Dollar for a third day after the success of the Portuguese bonds auction, helping to ease fears of euro zone debt levels. Breaching the 1.3170 resistance level might extend further gains in the pair. Overall, EUR/USD traded with a low of 1.2961 and with a high of 1.3144. Today, The Interest Rate decision is expected unchanged at 1%.

EUR/USD – Last:  1.3103

British Pound (GBP) – The Pound rose against the dollar for the fourth day reaching a high for the month. This occurred as optimism and risk appetite were seen in the market despite the results of the Trade Balance, which came out at -8.7B, worse than the expected -8.2B. Breaching the 1.5780 resistance level might extend further gains in the pair. Overall, GBP/USD traded with a low of 1.5581 and with a high of 1.5778. Today, the Manufacturing Production is expected at 0.4% vs. 0.6% previously and the Interest Rate decision is expected unchanged at 0.5%.

GBP/USD - Last: 1.5744

Japanese Yen (JPY) – The Yen posted small gains against the dollar but the pair was still capped for the fifth day in a tight range between the 82.7 and 83.4 levels. Unless the boundaries are broken, we might expect similar fluctuations today. Overall, USD/JPY traded with a low of 82.80 and with a high of 83.45. No economic data is expected today.

USD/JPY-Last: 83.02

Canadian dollar (CAD) – The Canadian Dollar rose against the US dollar, reaching a high for the month, as the greenback showed weakness across the board. Breaking the 0.9850 support zone might extend further weakness in the pair. Overall, USD/CAD traded with a low of 0.9846 and with a high of 0.9909. Today, the Trade Balance is expected at -2B vs. -1.7B previously.

USD/CAD - Last: 0.9863