UFXBank Forex News: After 3 Days of Decline, GBP/USD Rises | Learn Forex | GoLearnForex.com

UFXBank Forex News: After 3 Days of Decline, GBP/USD Rises

Written by article default Wednesday, 25 May 2011 07:35

USD Dollar (USD) – The Dollar fell against most of the major currencies after good economic data came out from Europe, which temporarily relaxed investor concerns over the European economic situation. New Home Sales came out at 323K, better than the expected 305K. During the Asian session, the dollar advanced against the other majors. The NASDAQ and Dow Jones fell by 0.5% and 0.2% respectively. Crude oil rose by 1.9%, closing at $99.59 a barrel. Gold (XAU) rose by 0.5% and closed at $1523.30 an ounce. Today, FOMC Member Plosser Speaks, Core Durable Goods Orders m/m is expected at 0.7% vs. 2.3% previously, and Crude Oil Inventories are expected at -1.6M vs. 0.0 M last week.

Euro (EUR) – The euro gained in Forex trading against the Dollar for the first time in three days as the German Ifo Business Climate showed that confidence unexpectedly held near a record high, fueling bets that the European Central Bank will resume raising interest rates. The EUR/USD is facing serious support at 1.4000 levels, and if the pair breaks below this level, it might decline to 1.3800. Overall, EUR/USD traded with a low of 1.4001 and with a high of 1.4132. Today, the GfK German Consumer Climate is expected unchanged at 5.7.

EUR/USD – Last: 1.4062

British Pound (GBP) – The pound rose against the dollar and fell for the third day against the Euro after Moody’s investors Service said it may lower the credit rating of 14 British lenders and a report showed that the U.K budget deficit widened in April. The next resistance level of the GBP/USD on the four hour chart is located at 1.6200, and if the pair crosses this level, the pound could continue to rise toward 1.6300. The pair has a resistance level at 1.6090 and if it breaks below this level, it might decline to 1.6000. Overall, GBP/USD traded with a low of 1.6057 and with a high of 1.6208. Today the Revised GDP q/q is expected unchanged at 0.5% and the BBA Mortgage Approvals are expected at 32.2K vs. 31.7K.

GBP/USD - Last: 1.6171

Japanese Yen (JPY) –The Yen advanced versus the Dollar after the trade balance came out at -0.50T, better than the expected -0.59T previously. The USD/JPY is struggling with 82.00 levels, and as long as the pair is trading below this level, a short position is preferred. However, if the pair breaks the 82.00 level, it might rise to 83.00-83.50. Overall, USD/JPY traded with a low of 81.60 and with a high of 82.20. No economic data is expected today.

USD/JPY-Last: 81.93

Canadian dollar (CAD) – Canada’s dollar declined against the euro on concern that indicators are showing that the pace of the global recovery may be faltering, but the CAD did manage to advance against the U.S Dollar. According to the 4 hour chart, the pair is facing resistance at 0.9800, and if the pair breaks this level, the rate could jump to 0.9850 and then to 0.9900. Overall, USD/CAD traded with a low of 0.9753 and with a high of 0.9792. Today, no major economic data is expected.

USD/CAD - Last: 0.9786