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UFXBank Forex News: Dollar Rises as Investors Avoid Risk

Written by article default Monday, 23 May 2011 07:53

USD Dollar (USD) – The Dollar advanced against most of   the major currencies as the stock market fell last Friday and investors preferred to keep their money in a safe investment channel. The NASDAQ and Dow Jones fell by 0.71% and 0.74% respectively. Crude oil rose by 1.2%, and closed at $98.30 a barrel. Gold (XAU) rose by 1.5%, closing at $1508 an ounce. The Shanghai Gold Exchange plans to establish stock exchange traded funds to enjoy the increase in demand for gold in China - the world's largest investment market in precious metal. No major economic data is expected today.

Euro (EUR) – The Euro fell in Forex trading against the dollar and the Yen on concern that the debt crisis in Europe will deepen. The German PPI came out at 1.00%, better than the expected 0.60%. The EUR/USD is holding a serious support level between 1.4100- 1.4080 levels. If the pair breaks below this level, it might decline to 1.4000. Overall, EUR/USD traded with a low of 1.4138 and with a high of 1.4344. Today, the Manufacturing PMI is expected at 57.60 vs. 58.00.

EUR/USD – Last: 1.4085

British Pound (GBP) – The Pound strengthened against the Dollar and the Euro after the ECB said it may no longer accept Greek sovereign debt. The next resistance level of the GBP/USD on the four hour chart is located at 1.6300. If the pair crosses this level, the pound could continue to rise toward 1.6370, or even more. Overall, GBP/USD traded with a low of 1.6165 and with a high of 1.6304. No economic data is expected today.

GBP/USD - Last: 1.6211

Japanese Yen (JPY) –The Yen weakened versus the Dollar after the Interest Rate Decision came out unchanged at 0.10%. The USD/JPY is struggling with the 82.00 level, and as long as the pair is trading below this level, a short position is preferred. However, once the pair breaks the 82.00 level, it might rise to 83.00-83.50. Overall, USD/JPY traded with a low of 81.47 and with a high of 81.85. No economic data is expected today.

USD/JPY-Last: 81.93

Canadian dollar (CAD) – The Canadian dollar fell against the US Dollar as crude oil stalled. Core Retail Sales came out at -0.10% vs. 0.80% previously, Retail Sales came out at 0.00 vs. 0.90% previously. The Core CPI came out at 0.20% as expected, and the CPI came out at 0.30%, worse than the expected 0.50%. According to the 4 hour chart, the pair is facing resistance at 0.9750, and if the pair breaks this level, the rate might jump to 0.9825 and then to 0.9900. Overall, USD/CAD traded with a low of 0.9640 and with a high of 0.9771. Today, no major economic data is expected.

USD/CAD - Last: 0.9757