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UFXBank Forex News: Euro Jumps as Egypt Quiets

Written by article default Wednesday, 02 February 2011 07:56

USD Dollar (USD) – The U.S Dollar weakened against the major currencies after the ISM Manufacturing PMI came out at 60.80, better than the expected 58.2, and extending the fast growing sense of risk aversion. The Stock Markets in the U.S closed positive as the Dow Jones rose by 1.25% and the NASDAQ gained by 1.89%. Crude Oil declined by -1.5% from monthly highs back to $90.80 a barrel as the conflicts in Egypt have calmed down. Gold (XAU) gained 0.4% and closed near $1340 an ounce. Today, the ADP Non Farm Employment Change is expected at 148K vs. 297k previously.

Euro (EUR) – The Euro jumped against the U.S Dollar above the 1.38 area, for the first time since November 2010, after better than expected macroeconomic data came out. The German Unemployment change came out at -13k vs. a forecast of -11k and the Unemployment rate came out at 10%, vs. a forecast of 10.1%. Trading above the support level of 1.3770 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.3689 and with a high of 1.3841. Today, the PPI is expected at 0.8% vs. 0.3% previously.

EUR/USD – Last:  1.3854

British Pound (GBP) – The Pound rose against the greenback as the Nationwide HPI came out at -0.1%, better than the expected -0.3% and the Manufacturing PMI came out at 62, better than the expected 58.1. Trading above the support level of 1.6080 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.6008 and with a high of 1.6163. Today, the Construction PMI is expected at 49.8 vs. 49.1 previously.

GBP/USD - Last: 1.6172

Japanese Yen (JPY) – The Yen gained against the Dollar on the overall weakness of the greenback. Trading below the resistance level of 81.90 keeps the momentum negative for the pair.  Overall, USD/JPY traded with a low of 81.30 and with a high of 82.14. No economic data is expected today.

USD/JPY-Last:  81.41

Canadian dollar (CAD) – Canada’s dollar gained in Forex trading against the U.S Dollar, and the pair went back to trading below parity as the protests in Egypt quieted down and boosted demand for riskier assets. Only breaking the support level of 0.9850 might extend the decline in this pair, otherwise a rebound could be seen. Overall, USD/CAD traded with a low of 0.9898 and with a high of 1.0008. No economic data is expected today.

USD/CAD - Last: 0.9890