UFXBank Forex News: EURUSD Soars to 17-Month High, but Gets Grounded | Learn Forex | GoLearnForex.com

UFXBank Forex News: EURUSD Soars to 17-Month High, but Gets Grounded

Written by article default Thursday, 05 May 2011 07:04

USD Dollar (USD) – The Dollar was mixed against the other major currencies after the release of the ADP Nonfarm Employment Change, which came out less than expected at 179k vs. 200k forecast. There was also the release of the ISM Non-Manufacturing PMI, which dropped unexpectedly in April at 52.8 vs. 57.9 forecast. Both of these results caused investors to stick with the Dollar as a refuge. The NASDAQ and Dow Jones weakened by 0.47% and 0.66% respectively. Crude oil decreased by 1.6%, owing to better than analysts’ forecast of crude oil inventories data, and closed at $109.40 a barrel. Gold (XAU) weakened by 2%, closing at $1510 an ounce. Today, Unemployment Claims are expected to decline from 429K to 400K, Fed Chairman Bernanke Speaks.

Euro (EUR) – The Euro reached its strongest level in 17 months versus the Dollar on speculation that European central bank President Jean Claude Trichet will signal further interest rate boosts after a policy meeting today. In the end, the Euro closed almost unchanged as weakness in the global market is drifting the Euro as well. The EUR/USD has been struggling with the 1.4900 level over the past week, and as long as the rate is below 1.4900, the pair will probably decline below the 1.4800 level. Overall, EUR/USD traded with a low of 1.4775 and with a high of 1.4940. Today, the Interest Rate decision is expected to remain unchanged at 1.25%, German Factory Orders are expected to weaken from 2.40% to 0.40%, and ECB President Trichet will speak.

EUR/USD – Last: 1.4842

British Pound (GBP) – The Pound fell to its lowest level in more than a year of Forex trading versus the Euro and fluctuated versus the Dollar, after worsening economic data spurred speculation that the bank of England will keep rates at a record low to revive growth. The next support level of the GBP/USD on the daily chart is located at 1.6430, and if the pair breaks this level, the pound will probably continue with its bearish trend. Overall, GBP/USD traded with a low of 1.6452 and with a high of 1.6574. Today, the Interest Rate decision is expected to remain unchanged at 0.50%.

GBP/USD - Last: 1.6508

Japanese Yen (JPY) – The Yen strengthened against most major currencies as stocks and commodities markets drop for a second day, dampening appetite for higher yielding assets. The USD/JPY’s momentum is still very bearish, and as long as the pair is trading below the 81.40 level, the yen is more attractive. Overall, USD/JPY traded with a low of 80.43 and with a high of 81.19. No economic data is expected today due to a bank holiday in Japan.

USD/JPY-Last: 80.49

Canadian dollar (CAD) – The Canadian dollar dropped against most major currencies as stocks and commodities fell around the world, dampening demand for assets related to global economic growth. As long as the pair is trading above 0.9520 levels, the pair could rise towards 0.9700 and even more. Overall, USD/CAD traded with a low of 0.9504 and with a high of 0.9603. Today, Building Permits are expected to become negative from 9.90% to -2.50%, and the Ivey PMI is expected to decline from 73.20 to 65.10.

USD/CAD - Last: 0.9589