UFXBank Forex News: As Japan's Reactor Nears Meltdown, Yen Explodes | Learn Forex | GoLearnForex.com

UFXBank Forex News: As Japan's Reactor Nears Meltdown, Yen Explodes

Written by article default Thursday, 17 March 2011 08:03

USD Dollar (USD) – The Dollar strengthened against the other major currencies of Forex trading as Japan faces a nuclear emergency. As pressure is rising, investors are running to buy the Dollar as a refuge. Building Permits came out at 0.52M, worse than the expected 0.57M. The PPI came out at 1.6% better than the expected 0.6%. The Stock Markets in the U.S. closed negative for a third day in a row as the Dow Jones fell by -2.04% and the NASDAQ lost -1.89% following fears of a further deterioration in the nuclear situation of Japan. Crude Oil once again tested the strong support level of $96.80 and is currently trading firmly above $97 a barrel. Gold (XAU) is struggling to close below the $1400 psychological level, losing -0.48%. Today, the Core CPI is expected at 0.1% vs. 0.2% previously. Today, Unemployment Claims are expected at 388K vs. 397K previously. The Philadelphia Fed Manufacturing Index is expected at 29.9 vs. 35.9 previously.

Euro (EUR) – The euro fell for the first time after three consecutive days of rising, as Portugal's credit downgrade revived concern about the region’s debt crisis. The CPI came out as expected at 2.4%. Breaking the support level of 1.3870 might accelerate a decline in the pair. Overall, EUR/USD traded with a low of 1.3865 and with a high of 1.4002. No economic data is expected today.

EUR/USD – Last: 1.3921

British Pound (GBP) – The Pound fell against the Dollar, testing once again the support area of 1.5980. The Claimant Count Change data came out at -10.2k, better than the expected 1.3k. Breaking the support level of 1.5980 areas might accelerate a decline in the pair. Overall, GBP/USD traded with a low of 1.5980 and with a high of 1.6130. Today, Consumer Inflation Expectations will come out and later on, the Nationwide Consumer Confidence is expected at 48 vs. 47 previously.

GBP/USD - Last: 1.6023

Japanese Yen (JPY) – The Yen soared across the board, gaining an average of 300 pips at the beginning of the Asian session. In addition, it posted record high levels against the dollar following concern in Japan of radiation leaks spreading. Retreat in the Japanese currency occurred for a couple of hours and the Yen gave up a major part of the gains, as it squeezed up very fast. Holding below the resistance level of 80.30 keeps the bearish momentum in the pair. Overall, USD/JPY traded with a low of 76.30 and with a high of 80.60. Today, the Monetary Policy Meeting is expected.

USD/JPY-Last: 79.05

Canadian dollar (CAD) – The Canadian dollar weakened for a third day versus the U.S. dollar as Japan's nuclear crisis turned away investors from riskier assets related to global economic growth and commodities. Manufacturing Sales came out at 4.5%, better than the expected 1.3%. Breaching the 0.9980 resistance area might extend gains in the pair. Overall, USD/CAD traded with a low of 0.9805 and with a high of 0.9966. Today, Wholesale Sales are expected at 0.9% vs. 0.8% previously.

USD/CAD - Last: 0.99917