UFXBank Forex News: Dollar Weakens, Giving Way for Euro | Learn Forex | GoLearnForex.com

UFXBank Forex News: Dollar Weakens, Giving Way for Euro

Written by article default Wednesday, 13 April 2011 06:39

USD Dollar (USD) – The Dollar declined against most major currencies due to the U.S. trade deficit narrowing less than forecast in February, which indicates that soaring commodity prices hurt the world’s largest economy at the start of the year. Equities over New York dropped hard following the disappointing IBD/TIPP economic optimism index, which helps to further exaggerate an already risk-averse environment due to yesterday´s weak quarterly results. The NASDAQ weakened by -0.96% and the Dow Jones dropped by -0.95%. Crude oil fell for the second day in a row due to a cut of its growth forecasts for the U.S. and Japan, two of the top three oil-consuming countries, by the International Monetary Fund. Oil closed at $105.90 a barrel. Gold (XAU) fell as higher risk aversion spread throughout the marketplace today. It closed at $1456 an ounce. It seems traders are taking advantage of unprecedented profit-taking opportunities after last week´s record high level at $1476 an ounce. Today, Core Retail Sales are expected to rise by 0.70% as they had previously. In addition, the Beige Book is also expected to be released.

Euro (EUR) – The Euro strengthened against the Dollar in Forex trading due to US dollar weakness. The pair is finding support at 1.4400. If it once again breaks its resistance at 1.4480, the trend will likely be bullish and it may reach to its next resistance at 1.4625. Overall, EUR/USD traded with a low of 1.4242 and with a high of 1.4486. Today, Industrial Production is expected to go up by 0.80% vs 0.20% previously.

EUR/USD – Last: 1.4473

British Pound (GBP) – The Pound fell against the Green back for the second day following inflation data in the UK. The CPI came out lower than expected, rising by only 4.0% vs a 4.4% growth forecast. If the pair maintains the level of 1.6280 as a resistance, the trend will continue to be bearish. Overall, GBP/USD traded with a low of 1.6262 and with a high of 1.6427. Today, the Claimant Count Change is expected to decline by -3.6K vs -10.2K previously.

GBP/USD - Last: 1.6254

Japanese Yen (JPY) –The Yen traded unchanged against the US Dollar after Japan raised the severity rating of its nuclear crisis to the highest level yet, matching the 1986 Chernobyl disaster. The trend is bearish and the next support level of the USD/JPY on the daily chart is located at 83.50. If the pair breaks below this level, the pair could decline to 83.00 and even less. Overall, USD/JPY traded with a low of 83.45 and with a high of 85.48. No major news is expected to be released.

USD/JPY-Last: 83.80

Canadian dollar (CAD) – The Canadian Dollar declined against the US Dollar after oil fell by -2.54%. In addition, the statement from the Bank of Canada regarding its decision to keep rates unchanged at 1% in order to achieve the 2 per cent inflation target, didn't provide a reason for investors to buy the Loonie. Overall, USD/CAD traded with a low of 0.9526 and with a high of 0.9624. Today, BOC Monetary Policy Report is expected to be released.

USD/CAD - Last: 0.9620