UFXBank Forex News: Yen Drops Near 3-Week Low vs. USD | Learn Forex | GoLearnForex.com

UFXBank Forex News: Yen Drops Near 3-Week Low vs. USD

Written by article default Thursday, 31 March 2011 08:12

USD Dollar (USD) – The Dollar mostly weakened versus the major currencies despite ADP Employer Services today showing that companies hired 201,000 workers in March, marking the third time in four months that the nation added more than 200,000 jobs. But still, investors are waiting for the release of the U.S. non-farm payrolls on Friday.  The Finance markets in the U.S. closed positive as the Dow Jones jumped by 0.58% and the NASDAQ gained 0.72% as a report showed that companies added more workers in March, which bolstered optimism about the economy. Crude Oil dropped by 0.01% and closed at $104.26 a barrel after a U.S. government report showed a larger-than-forecast gain in supplies, 2.60M vs 1.6M previously. This came as fuel demand declined to the lowest level in four months. Gold (XAU) declined by -0.08% and closed at $1423.70 an ounce. Today, Unemployment Claims are expected at 379k vs. 382k previously. Factory Orders data is expected to come out at 0.70% vs. 3.10% previously.

Euro (EUR) – The euro managed to close the day of Forex trading positive against the dollar and is hovering above the 1.41 area, due to expectation that the European Central Bank will raise interest rates by 0.25 percent when it meets on April 7. The pair failed to break its resistance level at 1.4150 but might try it again later on this week. If this strong resistance level will be break, it will bring the pair once again above the 1.42 zones. Overall, EUR/USD traded with a low of 1.4046 and with a high of 1.4148. Today, German Retail Sales are expected to come out at 0.40%, as it had previously. In addition, CPI Flash Estimate Sales are expected to come out at 2.40%, as it had previously.

EUR/USD – Last:  1.4138

British Pound (GBP) – The Pound rose against the greenback at the end of the day due to US Dollar weakness. In addition, CBI Realized Sales rose to 15 vs 6 previously. Holding above the critical support zones of 1.6080 will push the pair higher once again. Overall, GBP/USD traded with a low of 1.5978 and with a high of 1.6080. Today, the Nationwide HPI is expected to decline by -0.1% vs. 0.3% previously.

GBP/USD - Last: 1.6081

Japanese Yen (JPY) - The yen fell to an almost a three-week low versus the dollar amid demand for higher-yielding assets. There is resilient risk appetite this week as equity markets are doing well globally. In addition, the deterioration in the nuclear reactor condition, are keeping investors away from the yen. The trend is bearish for the pair and it may reach to 82.20 after it didn't reach the level necessary to break its resistance at 83.20. Overall, USD/JPY traded with a low of 82.41 and with a high of 83.20. Today, the Tankan Manufacturing Index is expected to rise by 6 vs 5 previously.

USD/JPY - Last: 82.70

Canadian dollar (CAD) – The Canadian Dollar strengthened against the U.S. dollar for a third day as Crude Oil prices climbed during the day to a level of $105 a barrel. But, the pair didn’t succeed in breaking the critical support level at 0.9700. It might test this support level again and may bring the pair to new record lows. Overall, USD/CAD traded with a low of 0.9685 and with a high of 0.9752. Today, the GDP is expected to rise by 0.50% as it had previously. If this economic data comes out better than expected, the pair should break its support level.

USD/CAD - Last: 0.9711