UFXBank Forex News: Euro Drops as Greece's Debt Issues Resurface | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro Drops as Greece's Debt Issues Resurface

Written by article default Thursday, 12 May 2011 08:34

USD Dollar (USD) – The Dollar gained in Forex trading against most of the major currencies as heavy selling in commodities supported the greenback. The trade balance came out at -48.2B, worse than the expected -46.8B, hence risk aversion was supported in the market. The stock markets closed negative as the Dow Jones lost -1.02% and the NASDAQ fell by -0.93%. Crude Oil fell by -5.5% after inventories came out larger than expected, and Oil closed at $98.80 a barrel. Gold (XAU) declined by -1% and closed at $1501 an ounce. Today, Core Retail Sales are expected at 0.7% vs. 0.8% previously, the PPI is expected at 0.6% vs. 0.7% previously, Unemployment Claims are expected at 430k vs. 474k previously, and a speech from the FED is expected as well.

Euro (EUR) – The euro snapped against the U.S dollar as the debt concerns of Greece are back in focus once again, while European leaders are leaning towards reducing additional aid. In addition, S&P rating agency could possibly further downgrade on Portugal’s banks. In terms of technical analysis, breaking the support zone of 1.4170 could push the pair back to 1.4 levels. Overall, EUR/USD traded with a low of 1.4171 and with a high of 1.4422. Today, Industrial Production is expected at 0.4% vs. 0.5% previously, and the ECB Monthly Bulletin is expected as well.

EUR/USD – Last: 1.4233

British Pound (GBP) – The pound weakened versus the dollar, although earlier as the Inflation report came out and the Bank of England Governor spoke, the Sterling jumped above the 1.65 levels but, started to lose gains after the commodity markets tumbled. The pair has consolidated a daily support zone at 1.6320 and unless we see this level broken, once again, a rebound back to 1.64 levels could be seen. Overall, GBP/USD traded with a low of 1.6320 and with a high of 1.6515. Today, Manufacturing Production is expected at 0.3% vs. 0% previously.

GBP/USD - Last: 1.6375

Japanese Yen (JPY) – The yen weakened against the dollar on a global trend of a strengthening greenback, but yet the two trading in a narrow range. In terms of technical analysis, breaking the resistance level at 81.80 might push the pair upwards. Overall, USD/JPY traded with a low of 80.60 and with a high of 81.30. Today, no major economic data is expected.

USD/JPY-Last: 81.10

Canadian dollar (CAD) – The Canadian dollar weakened against the U.S dollar as Crude Oil was crushed and stocks fell leaving a decreased the demand for higher yielding assets. The Trade Balance came out at 0.6B, better than the expected 0.5B. Holding above the support level of 0.9530 keeps the momentum positive for the pair. Overall, USD/CAD traded with a low of 0.9512 and with a high of 0.9636. Today, the NHPI is expected at 0.3% vs. 0.4% previously.

USD/CAD - Last: 0.9611