UFXBank Forex News: GBP Makes Gains Against Euro and Dollar | Learn Forex | GoLearnForex.com

UFXBank Forex News: GBP Makes Gains Against Euro and Dollar

Written by article default Wednesday, 06 April 2011 06:41

USD Dollar (USD) – The Dollar traded mixed against the major currencies after the ISM Non-Manufacturing PMI came out at 57.3, worse than the expected 59.8. Later on in the day, notes released from the Federal Reserve’s March 15 meeting showed some policy makers said that signs of a stronger recovery may warrant a less-accommodative monetary policy. Wall Street closed mixed as the Dow Jones fell by 0.05% and the NASDAQ rose by 0.07%.  Crude Oil fell by 0.1%, but kept above $108 a barrel, and as long as the situation in North Africa is not resolved, the prices will keep rising. So far, Oil is at a 30 month high. Gold (XAU) rose by 1.4% and closed at $1,452.50 an ounce, which is a new high for the yellow metal. This occurred after speculation that there will be an interest rate hike in China.  Today, Crude oil inventories are expected.

Euro (EUR) – The EUR/USD closed almost unchanged in Forex trading after it had fallen to 1.4150 earlier in the day, but rose back to 1.4240, eventually closing at 1.4225 as of yesterday. All the major investors are waiting for the interest rate decision that will come out on Thursday, where expectations are for a rate hike of 25 basis points (0.25%). The EUR/USD is still facing resistance at 1.4280, but if it happens to break this level, it will continue on to 1.4400. Overall, EUR/USD traded with a low of 1.4150 and with a high of 1.4244. Today, the GDP is expected at 0.30% as it was previously, and German factory orders are expected at 0.50% vs. 2.90% previously.

EUR/USD – Last:  1.4256

British Pound (GBP) – The pound gained against the euro and the dollar after a report showed that the service industries in the U.K expanded at a faster pace in March, bolstering the case for higher interest rates.  The momentum is still bullish and now faces a resistance at 1.6400. Overall, GBP/USD traded with a low of 1.6091 and with a high of 1.6296. Today, the Manufacturing Production is expected at 0.50% vs. 1.00% previously, and Industrial Production is expected at 0.40% vs. 0.50% previously.

GBP/USD - Last: 1.6332

Japanese Yen (JPY) - The dollar rose towards a six-month high against the yen as Federal Reserve Chairman Ben Bernanke stated yesterday, that inflation must be watched “extremely closely,” spurring bets that interest rates may rise sooner than had been forecast. The price is located now at 84.80 as expected, and the momentum is still bullish towards 85.70. Overall, USD/JPY traded with a low of 84.01 and with a high of 84.86. No economic data is expected today.

USD/JPY - Last: 85.39

Canadian dollar (CAD) – The Canadian Dollar rose against the U.S. dollar after unsuccessful trying to break the resistance at 0.9700, where the pair was once again captured at 0.9635. If oil prices will continue to strengthen it may bring the pair to new record lows. The pair is still facing resistance at 0.9680 according to the daily chart. Overall, USD/CAD traded with a low 0.9627 and with a high of 0.9692. Today, the Ivey Purchasing Managers’ Index is expected at 5.20 vs. 69.30 previously.

USD/CAD - Last: 0.9623