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UFXBank Forex News: Pouund Rises on Strong Data

Written by article default Monday, 11 April 2011 06:22

USD Dollar (USD) – The Dollar mostly weakened versus the major currencies of Forex trading after the European central bank raised its interest rate and improved risk sentiment was seen on the back of the global recovery. In addition, U.S. lawmakers remained in a stalemate on a federal budget and Federal Reserve plans to buy Treasuries through June to support faster economic growth. The NASDAQ and Dow Jones weakened by 0.56% and 0.24% respectively, Crude oil rose by 0.32% with Oil advancing for a fourth day as NATO escalated its air campaign over Libya and on concern that unrest may spread to other energy-exporting countries in the Middle East. It closed at $113.15 a barrel, but the climb in oil prices in recent weeks may be set for a pullback following reports that suggest “"Muammar Gaddafi has accepted a roadmap for ending the conflict in Libya". Gold (XAU) posted fresh all-time highs today, moving above $1470 and closed at $1476.40 per ounce. No major news is expected to be released.

Euro (EUR) – The Euro rose to its highest level in more than 15 month against the Dollar after European Central Bank President Jean Claude Trichet increased the rate in the Euro zone by 0.25%, the first time in almost three years. In addition, Trichet was quoted as saying, "We will continue to do it in the future” and what is appropriate is “to ensure price stability.” The interest rate increase led investors to be a bit more optimistic to the economic outlook. The EUR/USD’s momentum is still very bullish as long as the pair is trading above 1.4400. The next resistance level on the weekly chart is 1.4480. Overall, EUR/USD traded with a low of 1.4242 and with a high of 1.4486. No major economic data is expected today.

EUR/USD – Last: 1.4463

British Pound (GBP) – The Pound rose against the Green back due to good economic data regarding the economic recovery. PPI Input rose by 3.7% vs 2.2% forecast. The GBP/USD‘s resistance is still at 1.6400 and the momentum is still bullish. On the other hand, if the pair breaks below it support at 1.6270, the pair could weaken to it support level at 1.6200. Overall, GBP/USD traded with a low of 1.6262 and with a high of 1.6427. No major economic data is expected today.

GBP/USD - Last: 1.6370

Japanese Yen (JPY) –The Yen traded mixed against the US Dollar as it struggled around the 85.00 level. On the one hand, the Yen gained against the US Dollar on speculation that traders will reduce investments in higher yielding assets funded by the currency after a 7.4 magnitude aftershock hit Japan. But on the other hand, it weakened as the Bank of Japan added to economic stimulus to help the nation’s economic recovery. The next support level of the USD/JPY on the daily chart is located at 84.60, and if the pair breaks below this level, the pair could decline to 84.00 or even less. Overall, USD/JPY traded with a low of 84.58 and with a high of 85.48. The Monetary Policy Meeting Minutes are expected to be published.

USD/JPY-Last: 84.80

Canadian dollar (CAD) – The Canadian Dollar traded mixed against the US Dollar after an unsuccessful attempt to break its support level of 0.9535. But if crude oil will continue its bullish momentum, the pair will try again to break this support level. As long as USD/CAD is trading below 0.9700 the Canadian Dollar is more attractive and the momentum is very bearish for the US Dollar. The next support level on the four hour chart is located at 0.9430. Overall, USD/CAD traded with a low of 0.9526 and with a high of 0.9624. No major economic data is expected today.

USD/CAD - Last: 0.9555