UFXBank Forex News: Pound Gains for Third Day vs USD | Learn Forex | GoLearnForex.com

UFXBank Forex News: Pound Gains for Third Day vs USD

Written by article default Thursday, 03 February 2011 08:55

USD Dollar (USD) – The Dollar was a bit higher against the most of other major currencies of the world after a report showed that U.S. private sector employers (ADP) added more jobs than expected in January (came at 187k vs. 150k forecast). Also, the turmoil in Egypt caused the investors to prefer the Dollar as a refuge. The NASDAQ and the Dow Jones remained almost unchanged at -0.06% and +0.02%, respectively. Crude oil strengthened by 0.1% and closed at $90.86 per barrel. Gold (XAU) weakened by 0.6% and closed at $1332.10 an ounce. Today, Unemployment Claims are expected to decrease from 454K to 425K, Fed Chairman Bernanke is set to Speak, and Prelim Nonfarm Productivity is expected at 2.20% vs. 2.30% prior.

Euro (EUR) – The Euro weakened against the Dollar for the first time in three days of Forex trading after Ireland’s credit rating was cut by Standard & Poor’s, reviving concern that Europe’s sovereign debt crisis may worsen. The EUR/USD is facing very serious levels between 1.3800-1.3870, and as long as the rate is between these levels, the momentum of the Euro is on hold. Overall, EUR/USD traded with a low of 1.3767 and with a high of 1.3861. Today, the interest rate decision is expected to remain at 1.00%, and there is an ECB Press Conference.

EUR/USD – Last: 1.3804

British Pound (GBP) – The Pound extended its third day of gains versus the Dollar as the construction industry PMI came out better than the expectations for January (53.7 vs. 49.8 forecast). The GBP/USD has been trading very positive in the past three days, and the next resistance line on the daily chart is at 1.6280. As long as the rate is above 1.6050, the pound is more attractive and a long position is preferred. Overall, GBP/USD traded with a low of 1.6128 and with a high of 1.6230. Today, the Services PMI is expected to rise from 49.70 to 51.10.

GBP/USD - Last: 1.6191

Japanese Yen (JPY) –The Yen was lower against the Dollar after the release of U.S. data on ADP nonfarm employment change supported the Dollar over other currencies. The momentum of the USD/JPY has been bearish in the last week, and if the pair breaks below the 81.00 level, the pair will probably continue to decrease to the 80.00 level. Overall, USD/JPY traded with a low of 81.33 and with a high of 81.86. No economic data is expected today.

USD/JPY-Last: 81.63

Canadian dollar (CAD) – The Canadian Dollar continued to gain versus the US Dollar, reaching the strongest level in two weeks as oil traded at almost a two year high, drifting the Canadian as well. As long as the USD/CAD is trading below 1.0000 and below the 10 moving average on the daily chart, the Canadian Dollar is more attractive, and the next support level on the one hour chart is located at 0.9930. Overall, USD/CAD traded with a low of 0.9860 and with a high of 0.9916. No economic data is expected today.

USD/CAD - Last: 0.9881