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UFXBank Forex News: Euro Soars Against Dollar
Written by article default Friday, 14 January 2011 08:58
USD Dollar (USD) – The Dollar lost gains across the board in Forex trading as ongoing positive news coming out of Europe pushed the investors to buy higher yielding assets and drop the greenback. The Initial Jobless Claims came out 445k worse than expected 404k. The PPI came out 1.1% better than expected 0.7%. The Trade Balance came out -38.3B, better than expected -40.6B. The Stock Markets in U.S. closed negative as the Dow Jones fell -0. 2% and the NASDAQ declined by -0.07%. The Crude Oil lost -0.5% and closed near the 91$ a barrel. Gold (XAU) declined below the 1380 area and closed at 1374$ an ounce. Today, the Core CPI is expected unchanged at 0.1%. The Retail Sales are expected at 0.7% vs. 0.8% previously. The Michigan Consumer Sentiment Index is expected at 75.5 vs. 74.5 previously.
Euro (EUR) – The Euro soared against the Dollar for a fourth after auctions and speculations that European Union leaders will put efforts to restrain the region’s debt crisis. The President Sarkozy mentioned that the Euro is better but still too high vs. dollar. The Interest Rate decision came out unchanged at 1% as expected. Breaching the 1.3380 resistance level might extend farther gains in the pair. Overall, EUR/USD traded with a low of 1.3088 and with a high of 1.3382. Today, the CPI is expected unchanged at 2.2%.
EUR/USD – Last: 1.3333
|
Resistance |
1.3140 |
1.3210 |
|
|
Support |
1.3040 |
1.2960 |
1.2875 |
British Pound (GBP) – The Pound rose against the dollar for the fifth day reaching monthly high level as optimism and risk appetite were leading the markets. The Prime Minister David Cameron mentioned that UK will not join new euro mechanisms to help protect the euro. The Interest Rate decision came out unchanged at 0.5% as expected. Breaching the 1.5880 resistance level might extend farther gains in the pair. Overall, GBP/USD traded with a low of 1.5716 and with a high of 1.5882. Today, the PPI Input is expected at 1.6% vs. 0.9% previously.
GBP/USD - Last: 1.5824
|
Resistance |
1.5880 |
|
|
|
Support |
1.5780 |
1.5680 |
1.5590 |
Japanese Yen (JPY) – The Yen posted gains against the dollar after disappointing jobless claims in U.S. but the pair still capped for the sixth day in a tight range between the 82.7 - 83.4 levels. Unless the boundaries are broken we might expect today the same fluctuation once again. Overall, USD/JPY traded with a low of 82.52 and with a high of 83.14. No economic data is expected today.
USD/JPY-Last: 82.62
|
Resistance |
83.45 |
84.40 |
|
|
Support |
82.70 |
81.80 |
Canadian dollar (CAD) – The Canada's dollar fell against the U.S dollar and was among the only currencies declining vs. the greenback as report showing an increase in U.S. initial jobless claims damped growth expectations for Canada. The Trade Balance came out -0.1B, better than expected -2B. Holding above the 0.9850 support zone might rebound the pair upwards. Overall, USD/CAD traded with a low of 0.9853 and with a high of 0.9907. No major economic data is expected today.
USD/CAD - Last: 0.9899
|
Resistance |
0.9900 |
0.9950 |
1.0020 |
|
Support |
0.9850 |
|
|