UFXBank Forex News: GBP/USD Continues it's Slide for 4th Day | Learn Forex | GoLearnForex.com

UFXBank Forex News: GBP/USD Continues it's Slide for 4th Day

Written by article default Tuesday, 29 March 2011 08:15

USD Dollar (USD) – The Dollar traded mixed versus most of the major currencies on a low volatility Forex trading session. Positive macro data came out in the U.S as the Personal Spending came out at 0.7%, better than the expected 0.5%, and the Pending Home Sales came out at 2.1%, better than the expected 0.3%. The stock markets in the U.S. closed negative as the Dow Jones declined by -0.19% and the NASDAQ lost -0.45%. Crude Oil finally broke down after long term fluctuation, losing -1.4% and closing at $103.80 a barrel. Gold (XAU) declined by -0.4%, closing at $1420 an ounce. Today, the CB Consumer Confidence is expected at 65 vs. 70.4 previously.

Euro (EUR) – The euro recovered from previous day losses against the dollar after the ECB President said that inflation rates that rise above 2% would be a concern, implying a possible increase in the Interest rate. Sustaining the 1.4 support zone keeps the momentum positive in the pair. Overall, EUR/USD traded with a low of 1.4019 and with a high of 1.4115. Today, the Gfk German Consumer Climate is expected at 5.9 vs. 6 previously. The German Prelim CPI is expected at 0.4% vs. 0.5% previously.

EUR/USD – Last:  1.4082

British Pound (GBP) – The Pound accomplished four consecutive days of weakness against the dollar, and moved back to test the critical support level at 1.5980 zones, on speculation that the interest rates will remain at a record low for a longer period. Breaking the critical support zones at 1.5980 will push the pair lower; otherwise, a rebound might be seen. Overall, GBP/USD traded with a low of 1.5935 and with a high of 1.6036. Today, the Current Account is expected at -10.4B vs. -9.6B previously. The Final GDP is expected unchanged at -0.6%.

GBP/USD - Last: 1.6003

Japanese Yen (JPY) – The Yen weakened against the dollar on concerns that radiation levels detected at the demolished nuclear plant might be fatal. Retails Sales came out at 0.1%, better than the expected -0.4%. Breaching the 81.80 resistance level might bring the pair above the 82 levels once again. Overall, USD/JPY traded with a low of 81.29 and with a high of 81.83. Today, Prelim Industrial Production is expected at 0% vs. 1.3% previously.

USD/JPY - Last: 81.75

Canadian dollar (CAD) – The Canadian Dollar strengthened against the U.S. dollar after it tested the strong resistance level of 0.9820, and once again, failed to breach it. Holding below that resistance level turns the momentum to negative for the pair. Overall, USD/CAD traded with a low of 0.9740 and with a high of 0.9822. No major economic data is expected today.

USD/CAD - Last: 0.9767