UFXBank Forex News: GBP Gains on Euro as Uncertainty Continues | Learn Forex | GoLearnForex.com

UFXBank Forex News: GBP Gains on Euro as Uncertainty Continues

Written by article default Tuesday, 18 January 2011 08:37

USD Dollar (USD) – The Dollar was mixed against the other major currencies in Forex trading. The mixed results comes as there were hopes for a quick agreement on the euro zone’s bailout fund in addition to the Martin Luther King Jr. holiday in the US causing the stock markets to be closed. The NASDAQ and Dow Jones were closed due to Martin Luther King Jr. Day. Crude oil and Gold (XAU) were both very stable during the session and in the end, closed almost unchanged. Today, TIC Long-Term Purchases are expected to rise from 27.60B to 46.70B, and the Empire State Manufacturing Index is expected at 12.00 vs. 10.60 prior.

Euro (EUR) – The Euro fell against the Dollar, for the first time in the last five days, on concern that the European finance ministers meeting today won’t go far enough to stem the spread of the region’s debt crisis. The resistance of the EUR/USD on the daily chart is at 1.3450, and as long as the rate is above the 10 moving average on the daily chart, the euro is still strong. Overall, EUR/USD traded with a low of 1.3244 and with a high of 1.3380. Today, German ZEW Economic Sentiment is expected to rise from 4.30 to 6.30, and ZEW Economic Sentiment is expected to increase from 15.50 to 17.30.

EUR/USD – Last: 1.3282

British Pound (GBP) – The Pound strengthened against the Euro and fluctuated against the Dollar on concern that the region’s debt crisis will worsen, allowing the U.K. economy to outperform its neighbors. The main resistance line of the GBP/USD on the daily chart is still 1.5910, the 10 moving average on the daily chart supports an uptrend. Therefore the momentum is bullish, and as long as the rate is above 1.5800, the pound is more attractive. Overall, GBP/USD traded with a low of 1.5835 and with a high of 1.5954. Today, CPI is expected to remain at 3.3%.

GBP/USD - Last: 1.5923

Japanese Yen (JPY) –The Yen rose a bit versus the Dollar as markets were closed in the US, commodities stayed calm, and no news was released in Japan that could cause the pair to be more attractive. As long as the USD/JPY is trading above 82.00 levels, a long position is preferred. The next resistance on the one hour chart is located at 83.10, and the next support level on the daily chart is at 82.30. Overall, USD/JPY traded with a low of 82.35 and with a high of 83.01. No economic data is expected today.

USD/JPY-Last:  82.58

Canadian dollar (CAD) – The Canadian Dollar stayed almost unchanged versus the US dollar as it was a quiet day in the markets, owing to the holiday, and therefore there wasn’t any cause for big movement. The USD/CAD was very steady, and as long as the pair is below 1.0000, the Canadian Dollar is more attractive. Overall, USD/CAD traded with a low of 0.9856 and with a high of 0.9901. Today, the BOC Rate Statement will occur and the interest rate decision will be released, which is expected to remain at 1.00%.

USD/CAD - Last: 0.9863