UFXBank Forex News: EUR/USD Climbs to 16-Month High | Learn Forex | GoLearnForex.com

UFXBank Forex News: EUR/USD Climbs to 16-Month High

Written by article default Wednesday, 27 April 2011 07:06

USD Dollar (USD) – The dollar fell against most of the major currencies and dropped to a 16-month low versus the euro on speculation that the Federal Reserve will consider further easing measures to support the U.S. economy after its bond-buying program expires in June. The CB Consumer Confidence came out at 65.40 as expected. The Stock Markets closed positive as the Dow Jones rose by 0.93% and the NASDAQ rose by 0.77%. Crude Oil fell by 0.1% and closed at $112.21 a barrel. Gold (XAU) somewhat maintained its record high, closing at $1509 an ounce. The main reason for this high level is that there is investor concern of rising inflation and investors are looking for an alternative investment as a result of a weaker dollar. Today, the Core Durable Goods Orders (MoM) are expected at 1.60% vs. 1.20% previously and the Interest Rate Decision is expected unchanged at 0.25%. There will also be the FOMC statement and Fed Chairman Bernanke is expected to speak.

Euro (EUR) – The euro strengthened against the U.S Dollar, reaching a 16 month high after hitting 1.4712 and advancing for a fourth day against the yen before a report that economists say will show the region’s industrial orders increased, adding to evidence that the European Central Bank may raise interest rates. Trading above the support level of 1.4636 keeps the momentum positive for the pair, and if the pair breaks below this support level, it might decline to 1.4550. Overall, EUR/USD traded with a low of 1.4492 and with a high of 1.4712. Today, the GfK German Consumer Climate is expected at 5.80 vs. 5.90 previously and the German CPI (MoM) is expected at $0.20 vs. 0.50% previously and Industrial New Orders (MoM) are expected at 1.60% vs. 1.20% previously.

EUR/USD – Last: 1.4684

British Pound (GBP) – The Pound fell in Forex trading against the dollar for a 4^th day and couldn’t hold its high level at 1.6600. U.K. government bonds advanced and the pound dropped versus the euro as investors pared bets on monetary tightening from the Bank of England after data showed British factory orders had deteriorated. The momentum looks bearish facing a support at 1.6430, and once the pair breaks below this support level, it might decline to 1.6344 according to the daily chart. Overall, GBP/USD traded with a low of 1.6430 and with a high of 1.6531. Today, The GDP is expected at 0.50% vs. -0.50% previously.

GBP/USD - Last: 1.6501

Japanese Yen (JPY) – The dollar fell to a three-week low against the yen on speculation that next week the Federal Reserve will reiterate its intention to keep interest rates near zero today. Retail sales came out at -8.50%, worse than the expected -5.80%. Holding below the resistance level of 81.65 keeps the momentum negative for the pair. According to the daily chart, the pair is facing support at 81.12 and once it breaches this level, the rate will likely decline to 80.75. Overall, USD/JPY traded with a low of 81.25 and with a high of 81.96. Today no major economic data is expected from Japan.

USD/JPY-Last: 81.52

Canadian dollar (CAD) – The Canadian Dollar gained for a second day versus its U.S. counterpart as equities advanced amid greater demand for assets related to global economic growth. According to the 4 hour chart, the momentum is bearish and facing a support level at 0.9475, with a resistance level at 0.9535. In the case that the rate remains above 0.9510, the momentum will be bullish for today facing another resistance at 0.9640. Overall, the pair traded with a low of 0.9494 and a high of 0.9562. Today we are not expecting any major economic data coming out from Canada.

USD/CAD - Last: 0.9494