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UFXBank Forex News: EUR/USD Rises Despite Dollar Strengthening

Written by article default Tuesday, 26 April 2011 07:50

USD Dollar (USD) – The dollar rose against most of the major currencies in Forex trading as a drop in U.S. stocks sapped demand for assets related to global economic growth. New home sales came out at 300K, better than the expected 280K. The Stock Markets in the US closed mixed as the Dow Jones fell by 0.21% and the NASDAQ rose by 0.20%. Crude Oil gained during the day, reaching 113.45, but fell back and closed at $112.20 a barrel. Gold (XAU) posted another record high when it touched $1518, but rebounded to close at $1509.1 an ounce. The main reason for this was investor concern of rising inflation and investors looking for an alternative to a weak US dollar. During the Asian session, the Dollar strengthened against most currencies and commodities. Gold fell to $1495 an ounce and Oil fell to $111.20. Today, CB Consumer Confidence is expected at 64.6 vs. 63.4 previously.

Euro (EUR) - The euro strengthened against the U.S Dollar and traded above 1.4500. Trading above the support level of 1.4530 keeps the momentum positive for the pair. The major support level according to the hourly chart is located at 1.4505. Overall, EUR/USD traded with a low of 1.4524 and with a high of 1.4626. Today, no major economic data is expected.

EUR/USD – Last: 1.4525

British Pound (GBP) – The Pound fell against the dollar for the third day and couldn’t hold the high level of 1.6600. The momentum looks bearish and faces a support at 1.6450. Once the pair breaks below this support level, it could decline to 1.6344 according to the daily chart. Overall, GBP/USD traded with a low of 1.6466 and with a high of 1.6551. Today, MPC Member Andrew Sentence Speaks.

GBP/USD - Last: 1.6463

Japanese Yen (JPY) – The dollar fell to a three-week low against the yen on speculation that the Federal Reserve will reiterate next week its intention to keep interest rates near zero. Holding below the resistance level of 82.20 keeps the momentum negative for the pair. According to the daily chart, the pair is facing support at 81.65, and if it is breached, the rate will decline to 81.10. Overall, USD/JPY traded with a low of 81.65 and with a high of 82.41. Today no major economic data is expected from Japan.

USD/JPY-Last: 81.76

Canadian dollar (CAD) – The Canadian Dollar closed unchanged versus the greenback and kept the rate above 0.9500. According to the daily chart and adding Bollinger Bands, we are expecting a bullish momentum today facing a resistance at 0.9640. Overall the pair traded with a low of 0.9541 and with a high of 0.9542. Today, we are not expecting any major economic data from Canada.

USD/CAD - Last: 0.9548