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UFXBank Forex News: GBP Weakens on Lower Growth Speculations
Written by article default Wednesday, 11 May 2011 06:41
USD Dollar (USD) – The Dollar traded mixed against most of the major currencies in Forex trading. U.S. Treasury Secretary Timothy F. Geithner and Chinese vice Premier Wang Qishan pledged today to tackle currency, financial services, and trade conflicts between the world’s two largest economies. The NASDAQ and Dow Jones rose by 1.01% and 0.60% respectively. Crude oil jumped by 1.3% owing to optimism over the U.S. economic recovery and the Mississippi River flooding, which stoked speculation that fuel output will be disrupted. At the end of the day, Oil closed at $103.88 a barrel. Gold (XAU) rose by $13.70 and closed at $1516.90 an ounce. Today, the trade balance is expected at -47.00B vs. -45.80B previously, and the federal budget balance is expected at -63.80B vs. -188.20B previously.
Euro (EUR) – The euro advanced against the U.S dollar yesterday as the American stock market rose. The EUR/USD‘s momentum might be positive as we expect the trade balance in the U.S afternoon, but As long as the rate is below 1.4500, the trend will probably turn bearish. Overall, EUR/USD traded with a low of 1.4269 and with a high of 1.4412. Today, the German CPI is expected at 0.3% vs. 0.2% previously.
EUR/USD – Last: 1.4404
|
Resistance |
1.4520 |
1.4660 |
1.4750 |
|
Support |
1.4370 |
1.4270 |
1.4200 |
British Pound (GBP) – The pound weakened versus the dollar and the euro on speculation that the Bank of England will lower its economic growth forecasts when it releases its inflation report tomorrow, making higher interest rates less likely. The next resistance level of the GBP/USD on the daily chart is located at 1.6420, and as long as the pair is trading below this level, the Pound is likely to continue to decline. Overall, GBP/USD traded with a low of 1.6315 and with a high of 1.6420. Today, the trade balance is expected at -7.4B vs. -6.8B, the Bank of England inflation report will be released, and the Bank of England Governor Mervyn King will speak.
GBP/USD - Last: 1.6368
|
Resistance |
1.6410 |
1.6480 |
1.6570 |
|
Support |
1.6300 |
1.6260 |
1.6200 |
Japanese Yen (JPY) – The yen suffered losses against most of its major counterparts as signs that the global economic recovery is picking up supported stocks and commodities, damping demand for Japan’s currency as a refuge. As long as the pair is below the resistance level of 80.70, the momentum will remain bearish. Once the pair breaches this resistance, it could jump to 81.40. Overall, USD/JPY traded with a low of 80.17 and with a high of 80.83. Today no major economic data is expected.
USD/JPY-Last: 80.89
|
Resistance |
81.20 |
81.90 |
82.30 |
|
Support |
80.70 |
80.50 |
80.20 |
Canadian dollar (CAD) – The Canadian Dollar advanced against the greenback as the price of crude oil rose after dropping last week. As long as the pair is trading below 0.9600 levels, the Canadian Dollar is more attractive. The next support level on the daily chart is located at 0.9530 levels, and once it breaks below this level, the pair could decline to 0.9450. Overall, USD/CAD traded with a low of 0.9566 and with a high of 0.9652. Today, the trade balance is expected at 0.50B vs. 0.00B previously.
USD/CAD - Last: 0.9556
|
Resistance |
0.9590 |
0.9640 |
0.9690 |
|
Support |
0.9520 |
0.9460 |
0.9400 |
Daily Review 11/05/11
USD Dollar (USD) – The Dollar traded mixed against most of the major currencies today. U.S. Treasury Secretary Timothy F. Geithner and Chinese vice Premier Wang Qishan pledged today to tackle currency, financial services, and trade conflicts between the world’s two largest economies. The NASDAQ and Dow Jones rose by 1.01% and 0.60% respectively. Crude oil jumped by 1.3% owing to optimism over the U.S. economic recovery and the Mississippi River flooding, which stoked speculation that fuel output will be disrupted. At the end of the day, Oil closed at $103.88 a barrel. Gold (XAU) rose by $13.70 and closed at $1516.90 an ounce. Today, the trade balance is expected at -47.00B vs. -45.80B previously, and the federal budget balance is expected at -63.80B vs. -188.20B previously.
Euro (EUR) – The euro advanced against the U.S dollar yesterday as the American stock market rose. The EUR/USD‘s momentum might be positive as we expect the trade balance in the U.S afternoon, but As long as the rate is below 1.4500, the trend will probably turn bearish. Overall, EUR/USD traded with a low of 1.4269 and with a high of 1.4412. Today, the German CPI is expected at 0.3% vs. 0.2% previously.
EUR/USD – Last: 1.4404
|
Resistance |
1.4520 |
1.4660 |
1.4750 |
|
Support |
1.4370 |
1.4270 |
1.4200 |
British Pound (GBP) – The pound weakened versus the dollar and the euro on speculation that the Bank of England will lower its economic growth forecasts when it releases its inflation report tomorrow, making higher interest rates less likely. The next resistance level of the GBP/USD on the daily chart is located at 1.6420, and as long as the pair is trading below this level, the Pound is likely to continue to decline. Overall, GBP/USD traded with a low of 1.6315 and with a high of 1.6420. Today, the trade balance is expected at -7.4B vs. -6.8B, the Bank of England inflation report will be released, and the Bank of England Governor Mervyn King will speak.
GBP/USD - Last: 1.6368
|
Resistance |
1.6410 |
1.6480 |
1.6570 |
|
Support |
1.6300 |
1.6260 |
1.6200 |
Japanese Yen (JPY) – The yen suffered losses against most of its major counterparts as signs that the global economic recovery is picking up supported stocks and commodities, damping demand for Japan’s currency as a refuge. As long as the pair is below the resistance level of 80.70, the momentum will remain bearish. Once the pair breaches this resistance, it could jump to 81.40. Overall, USD/JPY traded with a low of 80.17 and with a high of 80.83. Today no major economic data is expected.
USD/JPY-Last: 80.89
|
Resistance |
81.20 |
81.90 |
82.30 |
|
Support |
80.70 |
80.50 |
80.20 |
Canadian dollar (CAD) – The Canadian Dollar advanced against the greenback as the price of crude oil rose after dropping last week. As long as the pair is trading below 0.9600 levels, the Canadian Dollar is more attractive. The next support level on the daily chart is located at 0.9530 levels, and once it breaks below this level, the pair could decline to 0.9450. Overall, USD/CAD traded with a low of 0.9566 and with a high of 0.9652. Today, the trade balance is expected at 0.50B vs. 0.00B previously.
USD/CAD - Last: 0.9556
|
Resistance |
0.9590 |
0.9640 |
0.9690 |
|
Support |
0.9520 |
0.9460 |
0.9400 |