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UFXBank Forex News: GBP Drops Against USD, JPY

Written by article default Wednesday, 16 March 2011 08:23

USD Dollar (USD) – The Dollar strengthened against the other major currencies of Forex trading as concern in Japan of radiation leaks caused investors to buy the Dollar as a refuge. In addition, the Federal Reserve maintained its asset purchase program and kept borrowing costs at a record low (0.25%). The NASDAQ and Dow Jones fell by 1.25% and 1.15% respectively. Crude oil dropped by 4% owing to the deterioration in Japan, closing at $97.18 a barrel. Gold (XAU) weakened by 2.3% and closed at $1392.80 an ounce. Today, Building Permits are expected to rise from 0.56M to 0.57M, and the PPI is expected to weaken from 0.8% to 0.6%.

Euro (EUR) – The Euro closed almost unchanged after dropping earlier in the day. After a positive declaration from the fed caused the higher yielding assets to cut some losses, the Euro succeeding to regain what it had lost earlier. The EUR/USD’s resistance level on the daily chart is located at 1.4040, and if the pair crosses this level, it will probably continue to rise until 1.41, or even more. Overall, EUR/USD traded with a low of 1.3855 and with a high of 1.4013. Today, Core CPI and CPI are expected to remain at 1.10% and 2.4%, respectively.

EUR/USD – Last: 1.3967

British Pound (GBP) – The Pound fell against the Dollar and the Yen as Japanese Prime Minister Naoto Kan said that the danger of further radiation leaks from a crippled nuclear plant is increasing, driving demand for the safest assets. The next support level of the GBP/USD on the daily chart is located at 1.6000, and as long as the pair is trading below 1.6120, the Dollar is more attractive. Overall, GBP/USD traded with a low of 1.5978 and with a high of 1.6185. Today, BOE Gov King speaks, and the Claimant Count Change is expected at 1.30K vs. 2.40K prior.

GBP/USD - Last: 1.6056

Japanese Yen (JPY) –The Yen rose against all of its major pairs as concern in Japan of radiation leaks increased speculation that insurers will repatriate assets to pay for earthquake damages. The USD/JPY’s momentum is still very bearish, and as long as the pair is trading below 82.00 levels, the momentum is still negative for the US Dollar. Overall, USD/JPY traded with a low of 80.60 and with a high of 82.03. No economic data is expected today.

USD/JPY-Last: 80.83

Canadian dollar (CAD) – The Canadian dollar weakened the most in almost 10 months versus the US Dollar as oil dropped on concern that a nuclear accident outside of Tokyo may cripple the global economy. The pair has broken 0.9800 levels and therefore, the US Dollar may become bullish again. The next resistance level on the 4 hours chart is 0.9920. Overall, USD/CAD traded with a low of 0.9737 and with a high of 0.9973. Today, Manufacturing Sales are expected to rise from 0.40% to 1.00%.

USD/CAD - Last: 0.9861