UFXBank Forex News: Euro Rises for 6th Day on USD | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro Rises for 6th Day on USD

Written by article default Wednesday, 26 January 2011 08:00

USD Dollar (USD) – The Dollar traded mix against the major currencies of Forex trading on expectations that President Barack Obama will propose a five-year freeze on non-security discretionary spending.  CB Consumer Confidence came out at 60.60 better than the expected 53.50.  The Stock Markets in the U.S closed mix as the Dow Jones fell by 0.03% and the NASDAQ rose by 0.06%. Crude Oil slumped by 1.9% closing at $86.18 a barrel. Gold (XAU) fell by 0.8%, closing at $1333.50 an ounce. Today, New Home Sales are expected at 300K vs. 290K previously, the interest rate is expected unchanged at 0.25%, and the FOMC is expected.

Euro (EUR) – The Euro rose against the Dollar for the sixth day and remained trading above 1.3600, reaching 1.3704 and rebounded to the 1.3660 area after words from President Obama. According to the daily chart, trading above 1.6000 will keep the momentum bullish for the pair facing resistance at 1.3780 and finding support at 1.3500, in the case that it rebounds. Overall, EUR/USD traded with a low of 1.3572 and with a high of 1.3704. Today, no major economic data is expected.

EUR/USD – Last:  1.3694

British Pound (GBP) – The Pound slid the most in a month versus the greenback after a report showed that the U.K.’s gross domestic product unexpectedly shrank in the fourth quarter. The UK’s GDP came out at -0.50%, worse than the expected 0.50%. The Sterling dropped yesterday by 250 pips to 1.5750 breaking the support of 1.6000 as expected. The main support is at 1.5785 and 1.5700. If the pair breaks below the support level of 1.5700, it would likely continue on to 1.5600 and 1.5500. Overall, GBP/USD traded with a low of 1.5750 and with a high of 1.6017. Today, the MPC Meeting Minutes are expected.

GBP/USD - Last: 1.5809

Japanese Yen (JPY) – The Yen rose against the Dollar and closed around the 82.30 area. According to the daily chart, the main support is still at 82.00 and it tried to break below this, as expected. In the case that the pair breaks this support level, the rate will fall to 81.50 and then to 81.00. Overall, USD/JPY traded with a low of 81.98 and with a high of 82.66. Today the BoJ Monthly Report is expected.

USD/JPY-Last:  82.08

Canadian dollar (CAD) – Canada’s dollar declined against its U.S. counterpart for a second day, touching just below parity, as commodities fell and the country’s inflation rate accelerated less than forecast in December. The Core CPI (MoM) came out at -0.30%, worse than the expected -0.10%. Breaching the resistance level of 1.0020 might further extend a decline in the pair. Overall, USD/CAD traded with a low of 0.9911 and with a high of 1.0004. Today, no major economic data is expected.

USD/CAD - Last: 0.9971