UFXBank Forex News: Euro Drops on Interest Rate Decision | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro Drops on Interest Rate Decision

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USD Dollar (USD) – The Dollar gained against major currencies of Forex trading after the release of stronger than expected unemployment claims data (415k vs. 420k forecast) and ISM non manufacturing PMI that came 59.4 vs. 57.2 forecast ,caused the Dollar to be more attractive. Moreover, Federal Reserve Chairman Ben Bernanke said that the U.S. economic recovery should gain speed this year, causing the investors to be optimistic about the US economic. NASDAQ and Dow Jones strengthened by 0.16% and 0.17% respectively, Crude oil weakened by 0.4%, closed at 90.54$ a barrel, Gold (XAU) rose by 1.6%, closed at 1353$ an ounce. Today, Non Farm Employment Change is expected to rise from 113k to 163k, Unemployment Rate is expected to increase from 9.40% to 9.60%.

Euro (EUR) – The Euro declined versus the Dollar after the region’s central bank left interest rates unchanged at 1.0%, damping demand for the common currency. The EUR/USD couldn’t break the resistance that it has at 1.3865, as long as the rate below 1.3750 the momentum of the Euro is on hold, the next support level on the four hours chart is located at 1.3560. Overall, EUR/USD traded with a low of 1.3609 and with a high of 1.3825. Today, ECB President Trichet Speaks.

EUR/USD – Last: 1.3636

British Pound (GBP) – The Pound climbed to a three month high against the dollar after a report showed U.K. services companies returned to growth in January (54.5 vs. 51.2 forecast),in the end of the session the pond declined versus the Dollar after positive data from the US region that supported a stronger Dollar. The GBP/USD has encountered with a serious resistance on the daily chart (level 1.6300), as long as the rate is above 1.6100 the pound is more attractive but if the pair breakdown this level probably it will continue to decline. Overall, GBP/USD traded with a low of 1.6122 and with a high of 1.6278. Today, No economic data expected today.

GBP/USD - Last: 1.6135

Japanese Yen (JPY) –The Yen weakened against the Dollar as Initial Jobless Claims came out better than expectations which supported a stronger Dollar against the other major currencies. The momentum of the USD/JPY is still bearish but if the pair breakup 82.30 level the pair could climb to 83.00 level. Overall, USD/JPY traded with a low of 81.40 and with a high of 82.06. No economic data expected today.

USD/JPY-Last: 81.53

Canadian dollar (CAD) – The Canadian Dollar weakened against the Dollar as better than expected data from U.S. and optimistic words from Ben Bernanke succeeded to drift the Dollar to be positive. As long as USD/CAD is trading below 1.0000 and below the 10 moving average on the daily chart the Canadian Dollar is still more attractive, the next support level on the daily chart is located at 0.9840 .Overall, USD/CAD traded with a low of 0.9863 and with a high of 0.9922. Today, Employment Change is expected at 21.20K vs. 22.00K prior, Unemployment Rate is expected to remain at 7.6%, Ivey PMI is expected to rise from 50.00 to 53.70.

USD/CAD - Last: 0.9904