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UFXBank Forex News: Dollar Falls as Stock Markets Rise

Written by article default Tuesday, 22 March 2011 07:39

USD Dollar (USD) – The Dollar fell against the other major currencies of Forex trading after Existing Home Sales came out at 4.88 M, worse than the expected 5.05 M. The Stock Markets in the U.S. closed positive as the Dow Jones rose by 1.5% and the NASDAQ gained 1.83%. Crude Oil strengthened by 1.3% and closed at $102.33 a barrel. Gold (XAU) also jumped by 10.3 and closed at $1426.40 an ounce. Today, Treasury Secretary Timothy Geithner Speaks and FOMC Member Fisher will speak.

Euro (EUR) – The euro rose against the Dollar to 1.4240, the highest level since November. The ECB said that “strong vigilance” is necessary to keep a lid on inflation, a phrase the central bank uses to signal a rate increase is imminent. Holding above the support area of 1.4200 will keep the bullish momentum facing a strong resistance at 1.4240. Overall, EUR/USD traded with a low of 1.4138 and with a high of 1.4239. Today, no major economic data is expected.

EUR/USD – Last: 1.4214

British Pound (GBP) – Sterling gained versus the dollar. The pair is facing strong resistance at 1.6380, and breaking this level might keep the momentum bullish for the pair. Overall, GBP/USD traded with a low of 1.6207 and with a high of 1.6327. Today, the Core CPI is expected at 3.20% vs. 3.00% previously and CBI industrial trends orders are expected at -6.00 vs. -8.00 previously.

GBP/USD - Last: 1.6294

Japanese Yen (JPY) – The yen weakened for a second day against all of the major currencies as Japan made progress in cooling the nuclear reactors at a crippled plant, which in turn increased appetite for higher-yielding assets. Holding above the support zone of 80.50 keeps the momentum positive for the pair. Overall, USD/JPY traded with a low of 80.71 and with a high of 81.30. No economic data is expected today.

USD/JPY-Last: 80.94

Canadian dollar (CAD) – Canada’s dollar gained the most in almost seven weeks versus the U.S Dollar as crude oil, the nation’s largest export, rose on renewed concern that turmoil in North Africa and the Middle East may disrupt supplies. Holding below the resistance level of 0.9850 will keep the momentum bearish. Overall, USD/CAD traded with a low of 0.9748 and with a high of 0.9853. Today, Core Retail Sales are expected at 0.70% vs. 0.60% previously, and the leading indicators are expected at 0.70% vs. 0.30% previously.

USD/CAD - Last: 0.9785