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UFXBank Forex News: Euro Jumps on Fed Chairman's Statements

Written by article default Monday, 21 February 2011 07:40

USD Dollar (USD) – The Dollar fell against most currencies in Friday’s Forex trading after Bernanke said that unbalanced flows of money between nations is again posing a risk to the global economy and financial stability, which then caused investors to be pessimistic about the US Dollar. The NASDAQ and Dow Jones strengthened by 0.08% and 0.59% respectively. Crude oil weakened by 0.2% and closed at $86.20 a barrel. Gold (XAU) rose by $3.50, closing at $1388.60 an ounce. No economic data is expected today owing to a bank holiday in the US.

Euro (EUR) – The Euro rose to a one week high against the Dollar after the European Central Bank said on Friday that the bank may need to raise interest rates as global inflation pressures mounts. The EUR/USD is facing a serious resistance level (1.3750) on the daily chart, but if the pair breaks this level, the Euro will continue with its bullish trend. Overall, EUR/USD traded with a low of 1.3545 and with a high of 1.3715. Today, the German IFO Business Climate is expected at 110.40 vs. 110.30 previously.

EUR/USD – Last: 1.3673

British Pound (GBP) – The Pound reached a two week high against the Dollar after data showed that U.K. retail sales surged 1.9 percent last month, almost four times what was forecast (1.9% vs. 0.6% forecast). This boosted speculation that the Bank of England will increase interest rates at some point this year. The GBP/USD’s momentum this past week was bullish, and as long as the pair is trading above 1.6150 and above the 20 moving average on the daily chart, the pound remains very positive. Overall, GBP/USD traded with a low of 1.6148 and with a high of 1.6263. No economic data is expected today.

GBP/USD - Last: 1.6230

Japanese Yen (JPY) –The Yen strengthened versus the Dollar after the Dollar weakened on Friday due to Bernanke’s declaration, which then led investors to prefer the Japanese currency. The USD/JPY main support is at 83.00 and if the pair breaks below this level, the Dollar will probably continue to decline towards the 82.00 level. Overall, USD/JPY traded with a low of 83.03 and with a high of 83.53. No economic data is expected today.

USD/JPY-Last: 83.12

Canadian dollar (CAD) – The Canadian Dollar weakened versus the US Dollar after a government report showed annual inflation slowed in January (0.0% vs. 0.2% forecast), which led investors to sell the Canadian Dollar on Friday.  The USD/CAD’s support is located at the 0.9800 level, and as long as the pair is trading below the 20 moving average on the daily chart and below 0.9950, the Canadian Dollar is still more attractive. Overall, USD/CAD traded with a low of 0.9819 and with a high of 0.9874. No economic data is expected today.

USD/CAD - Last: 0.9865