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UFXBank Forex News: Currencies Uncertain as Euro Crisis Persists

Written by article default Thursday, 26 May 2011 08:07

USD Dollar (USD) – The Dollar was mixed against the other major pairs of Forex trading as U.S. core durable goods orders fell unexpectedly in April, posting the biggest drop in six months. The report came out at -1.5% vs. 0.7% forecast. In addition, the European debt crisis, which continues to make headlines, is causing currencies to be unstable. The NASDAQ and Dow Jones strengthened by 0.55% and 0.31% respectively. Crude oil increased by 1.7%, closing at $101.32 a barrel. Gold (XAU) rose by 0.2%, and closed at $1526.70 an ounce. Today, Prelim GDP is expected to rise from 1.8% to 2.2%. Unemployment Claims are expected to be 400K vs. 409K last time.

Euro (EUR) – The Euro fluctuated versus the Dollar after reports that an official in Greece said that the country may have to abandon the euro if it doesn’t deal with its debt crisis. In the end, the pair closed almost unchanged as the US stock markets closed positive after a negative start to a day that supported higher yielding assets. The EUR/USD is facing serious resistance levels between 1.4120 and 1.4170. In the case that the pair hits and stays above these levels, the Euro will likely continue to strengthen towards 1.4220, or even more. Overall, EUR/USD traded with a low of 1.4013 and with a high of 1.4118. Today, ECB President Trichet Speaks.

EUR/USD – Last: 1.4159

British Pound (GBP) – The Pound strengthened for a second day against the Dollar as a report showed that U.K. exports helped the economy resume growth in the first quarter and the GDP data came out as forecast at 0.5%. The next resistance level of the GBP/USD on the four hour chart is located at 1.6320, and if the pair crosses this level and remains above it, the pound will probably continue to rise toward 1.6370, and above. Overall, GBP/USD traded with a low of 1.6131 and with a high of 1.6293. No economic data is expected today.

GBP/USD - Last: 1.6315

Japanese Yen (JPY) –The Yen was mixed versus the major currencies, closing almost unchanged against the Dollar, as concerns over the euro zone’s sovereign debt crisis and negative data from the US boosted demand for the yen as a refuge. The USD/JPY is struggling with the 82.00 level, but as long as the pair is trading above the 81.40 level, a long position is preferred and the resistance level will likely break. Overall, USD/JPY traded with a low of 81.80 and with a high of 82.17. No economic data is expected today.

USD/JPY-Last: 81.87

Canadian dollar (CAD) – The Canadian dollar pared its losses versus the Dollar after touching its lowest level since March as crude oil rose during the US session, reviving demand for higher yielding assets. As long as the pair is trading above 0.9720 levels, the US Dollar momentum is bullish, and the next resistance level on the four hour chart is located at 0.9820 levels. Overall, USD/CAD traded with a low of 0.9743 and with a high of 0.9816. No major news is expected today.

USD/CAD - Last: 0.9762