UFXBank Forex News: Not Out of the Woods Yet, Euro Weakens | Learn Forex | GoLearnForex.com

UFXBank Forex News: Not Out of the Woods Yet, Euro Weakens

Written by article default Thursday, 19 May 2011 07:13

USD Dollar (USD) – The Dollar was mixed versus the other major currencies as commodities increased and stocks strengthened after the FOMC meeting minutes indicated a possible raising of the interest rate before the end of the year,  fueling investor appetite for higher yielding assets. The NASDAQ and Dow Jones advanced by 1.14% and 0.65% respectively. Crude oil strengthened by 3.3%, owing to crude oil Inventories data, which came out unchanged after expectation of an additional +1.4M barrels growth. In the end, Oil closed at $100.10 a barrel. Gold (XAU) rose by 1.1%, closing at $1495.80 an ounce. Today, Unemployment Claims are expected to decline from 434K to 420K, Existing Home Sales are expected to increase from 5.10M to 5.22M, and the Philly Fed Manufacturing Index is expected to be 20.00 vs. 18.50 previously.

Euro (EUR) – The Euro declined versus the Dollar in forex trading, after fears in the financial markets grew over the European sovereign debt crises, leading investors to sell the currency. The EUR/USD‘s resistance on the 4 hour chart is 1.4340, and if the pair crosses this level, the Euro will probably continue to strengthen toward 1.4400 or even more. Overall, EUR/USD traded with a low of 1.4195 and with a high of 1.4286. Today, No economic data is expected.

EUR/USD – Last: 1.4303

British Pound (GBP) – The Pound weakened versus all of the major currencies after the Bank of England’s meeting showed that the majority of policy makers had warned against raising borrowing costs.  Also, Unemployment Claims, which rose more than the forecast (12.4 k vs. 0.4K only), supported a weaker pound. The next support level of the GBP/USD on the 4 hour chart is located at 1.6100, and as long as the pair is trading below the 1.6250 level, the pound will probably continue to decline toward 1.6100 or even less. The 10 moving average supports bearish trend, as well. Overall, GBP/USD traded with a low of 1.6105 and with a high of 1.6288. Today, Retail Sales are expected to rise from 0.2% to 1.0%, and CBI Industrial Order Expectations are expected to be -5 vs. -11 previously.

GBP/USD - Last: 1.6175

Japanese Yen (JPY) –The Yen weakened against the Dollar as stocks and commodities rose after the FOMC meeting minutes, which supported higher yielding assets. The USD/JPY’s resistance on the daily chart is at 82.00, and as long as the pair is trading below this level, a short position is preferred. Overall, USD/JPY traded with a low of 80.94 and with a high of 81.74. No economic data is expected today.

USD/JPY-Last: 81.52

Canadian dollar (CAD) – The Canadian dollar strengthened for a second day versus the US Dollar as commodities rose, including crude oil, fueling demand for higher yielding assets. As long as the pair is trading above 0.9650 levels, the US Dollar is more attractive. The next resistance level on the four hour chart is located around the 0.9760 level. Overall, USD/CAD traded with a low of 0.9694 and with a high of 0.9760. No major economic news is expected today.

USD/CAD - Last: 0.9679