UFXBank Forex News: Euro/USD Rises on Prospect of Rate Hike | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro/USD Rises on Prospect of Rate Hike

Written by article default Monday, 07 March 2011 08:17

USD Dollar (USD) – The Dollar traded mixed against most of the major currencies of Forex trading after the Non Farm Payroll came in at 192,000 in February, a jump of 68.2%, which is the highest level since 1997. In addition, the Unemployment Rate dropped for the third month in a row to 8.9% from 9.00%, its lowest level since May 2009. But despite this news, the Stock Markets in the U.S. closed negative as the Dow Jones fell by -0.72% and the NASDAQ lost -0.50%, as traders are now expecting the Fed to be more inclined to raise rates in light of inflationary pressures. Crude Oil is trading near 29 month high on Middle East supply risk, moving above $105 a barrel. In addition, signs for the recovery of U.S economy will raise speculation and fuel demand will rise. Gold (XAU) jumped by 0.41% and closed above $1434.40 as a result of being a safe-haven demand in times when there is uncertainty. Today, Federal Reserve Bank of Dallas President Richard Fisher is expected to make a speech.

Euro (EUR) – The Euro raised against the dollar due to ECB President Trichet’s words on a possible rate hike on April. The pair reached its highest level since November 2010. Holding above its strong support level of 1.3960 might push the pair back to 1.4000 zones. If the pair will break its resistance at 1.4005 and the ECB will begin to rebalance monetary policy ahead of the Fed, we could see the Euro at 1.4500 for the long term. Overall, EUR/USD traded with a low of 1.3840 and with a high of 1.4005. Today, ECB President Trichet is expected to speak in Basel.

EUR/USD – Last:  1.3974

British Pound (GBP) – The pound fell against the greenback, though The Bank of England will leave its benchmark interest rate unchanged at a record low in the coming week as policy makers hold off tackling inflation on concerns about the strength of the recovery. Holding below the 1.6280 resistance level might push the pair lower to 1.62 areas. Overall, GBP/USD traded with a low of 1.6240 and with a high of 1.6300. No economic data is expected today

GBP/USD - Last: 1.6247

Japanese Yen (JPY) – The Yen traded mixed against the U.S Dollar after it fell due to positive economic data, which was published on Friday in the U.S. But, the strengthening in risk aversion raised the Yen again to the level of 82.33. The pair seems bearish and could fall back to the level of 82.00. Overall, USD/JPY traded with a low of 82.20 and with a high of 83.06. No economic data is expected today.

USD/JPY-Last: 82.34

Canadian dollar (CAD) – The Canadian Dollar traded mostly unchanged against the US Dollar in a tight range of 42 pips, fluctuating around the 0.97 zones and attempting to determine further trend. Holding above the support level of 0.9700 might rebound the pair back to parity. But, if Oil prices keep going up, the pair will probably break its strong support of 0.9700. Overall, USD/CAD traded with a low of 0.9700 and with a high of 0.9742. Today, Building Permits are expected to grow by 1.8% vs. 2.4% previously.

USD/CAD - Last: 0.9726