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UFXBank Forex News: EUR/USD Hits Highest Level in 14 Months

Written by article default Thursday, 07 April 2011 06:17

USD Dollar (USD) – The Dollar weakened in Forex trading against the other major currencies after better than expected data came out from the other major countries. This, and strong expectations that the ECB will increase the interest rate in the euro zone, led investors to prefer higher yielding assets. The NASDAQ and Dow Jones strengthened by 0.31% and 0.27% respectively, Crude oil rose by 0.5%, and closed at $108.83 a barrel. Gold (XAU) increased by 0.4% during the session, climbing to a new historic record of $1467. In the end, Gold fell back a little and closed at $1458 an ounce. Today, unemployment claims are expected to decrease from 388K to 385K.

Euro (EUR) – The Euro advanced to its highest level in more than 14 months against the Dollar on speculation that the European central bank will increase the interest rate by 0.25% tomorrow. The EUR/USD’s momentum has been very bullish over the last few days, and as long as the pair is trading above 1.4250 levels and above the 10 moving average on the daily chart, the trend continues to be positive for the Euro. Overall, EUR/USD traded with a low of 1.4228 and with a high of 1.4349. Today, the interest rate decision is expected to rise from 1.00% to 1.25%, there will also be an ECB Press Conference.

EUR/USD – Last: 1.4308

British Pound (GBP) – The Pound weakened against the Euro and fluctuated versus the Dollar after a report showed that U.K. manufacturing growth unexpectedly stalled in February (0.0% vs. 0.6% forecast), fueling speculation that the Bank of England will keep interest rates lower for longer. The GBP/USD‘s resistance is at 1.6400 on the daily chart, and if the pair breaks above this level, the pound will continue to rise. Overall, GBP/USD traded with a low of 1.6257 and with a high of 1.6363. Today, the interest rate decision is expected to remain unchanged at 0.50%.

GBP/USD - Last: 1.6309

Japanese Yen (JPY) –The Yen slumped against all of the major currencies on bets that the Bank of Japan will expand economic stimulus and keep the interest rate unchanged as the nation recovers from its worst earthquake on record. As long as the USD/JPY is trading above the 84.00 level, the trend is very bullish and a long position is preferred. Overall, USD/JPY traded with a low of 84.84 and with a high of 85.52. Today, there will be a BOJ Press Conference.

USD/JPY-Last: 85.34

Canadian dollar (CAD) – The Canadian Dollar rose to the strongest level in more than three years against the Dollar as commodities gained amid speculation about faster economic growth and inflation. In addition, the Ivey PMI came out better than expected (73.2 vs. 65.1 forecast) drifting the Canadian as well. As long as USD/CAD is trading below 0.9700, the Canadian Dollar is more attractive and the momentum is very bearish. The next support level on the four hour chart is located at 0.9570. Overall, USD/CAD traded with a low of 0.9568 and with a high of 0.9640. Today, Building Permits are expected to become positive from -5.10% to 2.10%.

USD/CAD - Last: 0.9613