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UFXBank Forex News: Short Lived Moment for USD/JPY
Written by article default Friday, 21 January 2011 00:00
USD Dollar (USD) – The Dollar posted gains versus most of the major currencies of Forex trading after a good macro economic data as the Initial Jobless Claims came out 404k better than expected 425k and the Existing Home Sales also extended more than in December as coming out at 5.28M better than expected 4.8M. The Stock Markets in U.S. closed negative as the Dow Jones lost -0.02% and the NASDAQ declined by -0.77%. The Crude Oil slumped by -2.2% closing at 88.86$ a barrel. The Gold (XAU) crashed as well losing -1.7% closing at 1347$ an ounce. No economic data is expected today.
Euro (EUR) – The Euro was little changed against the dollar, sustaining its previous gains. The German PPI came out 0.7% better than expected 0.5%. Only breaching the 1.3540 resistance level will extend gains in the EUR/USD pair otherwise a rebound could be seen. Overall, EUR/USD traded with a low of 1.3395 and with a high of 1.3523. Today, The German Ifo Business Climate Index is expected at 110.1 vs. 109.9 previously.
EUR/USD – Last: 1.3504
|
Resistance |
1.3540 |
|
|
|
Support |
1.3420 |
1.3370 |
1.3250 |
British Pound (GBP) – The Pound has halted the nine day rally and could not resist greenback's soar and fell to 3 days low level. The worse than expected CBI Industrial Trends Orders which came out -16 vs. expected -1 also supported the Sterling weakness. Holding below the resistance level of 1.6040 turns the momentum to negative for the GBP/USD pair. Overall, GBP/USD traded with a low of 1.5835 and with a high of 1.6008. Today, the Retail Sales are expected at -0.1% vs. 0.3% previously.
GBP/USD - Last: 1.5927
|
Resistance |
1.5920 |
1.6040 |
|
|
Support |
1.5820 |
1.5730 |
Japanese Yen (JPY) – The dollar jumped against the Yen and back to trade near the 93 levels following the strong macro economic data coming out in U.S. Holding above the 92 zone turns the momentum to positive for the USD/JPY pair. Overall, USD/JPY traded with a low of 81.98 and with a high of 83.11. No economic data is expected today.
USD/JPY-Last: 82.94
|
Resistance |
83.15 |
83.40 |
|
|
Support |
82.80 |
82.40 |
82.10 |
Canadian dollar (CAD) – The U.S dollar gained against the Canadian Dollar for a third day on speculation that China will take more measures to cool economic growth, restraining the appetite for commodity linked currencies. Breaching the resistance level of 1.0020 might fuel further extend in the pair. Overall, USD/CAD traded with a low of 0.9947 and with a high of 1.0028. Today, the Core Retail Sales are expected at 0.6% vs. 0.9% previously.
USD/CAD - Last: 0.9962
|
Resistance |
0.9980 |
1.0020 |
|
|
Support |
0.9935 |
0.9890 |
0.9840 |