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UFXBank Forex News: EUR/USD Strengthens Despite Greek Debt

Written by article default Monday, 30 May 2011 07:51

USD Dollar (USD) – The dollar fell versus most of the major currencies of Forex trading due to poor macroeconomic data. Pending home sales posted the biggest decline since May 2010, falling 11.6% in April. In addition, Employers probably hired fewer workers in May and manufacturing cooled as the jump in fuel costs and the effects of Japan’s earthquake rippled through the U.S. economy. In spite of this, Federal Reserve Bank of Kansas City President Hoenig, the central bank’s longest-serving policy maker, said that the U.S. needs to raise interest rates to encourage individuals to save and avoid future asset bubbles. It is important to mention that the financial markets in the two big centers, London and NY, are closed today, meaning that we’ll have a very quiet day in the markets, and the lack of liquidity could lead to some whippy and volatile trade. The Stock Markets closed positive as the Dow Jones rose by 0.31% and the NASDAQ gained 0.50%.  Crude oil rose by 0.40%, closing at $100.70 a barrel. Gold (XAU) rose by 0.80% and closed at $1,535 an ounce on a weaker US dollar, as gold continues to attract investors seeking a refuge amid Greece’s debt woes. Today, no economic data is expected.

Euro (EUR) – The euro strengthened against the U.S Dollar despite the concern that European governments will struggle to resolve the sovereign debt crisis, damping demand for the region’s assets. Trading above the support level of 1.4250 will keep the momentum positive for the pair, but if the pair keeps below this support level, it might fall to 1.4100. Overall, EUR/USD traded with a low of 1.4067 and with a high of 1.4321. Today, no economic data is expected.

EUR/USD – Last: 1.4285

British Pound (GBP) – The Pound strengthened against the Greenback as Nationwide HPI showed growth of 0.30% vs. -0.20% previously, and poor macroeconomic data was released from the US. The trend for the pair is bullish if the pair maintains it support level of 1.6400. Overall, GBP/USD traded with a low of 1.6057 and with a high of 1.6511. Today UK banks will be closed in observance of the Spring Bank Holiday.

GBP/USD - Last: 1.6480

Japanese Yen (JPY) – The dollar fell against the yen due to poor US macroeconomic indicators that continued coming, despite Fitch downgrading the Japanese credit outlook. The trend for the pair is bearish. If the pair succeeds to break its support level of 80.70, it may bring the pair to 80.20, its next support level. Today, Household Spending is expected to fall by -2.6% vs. -8.5% previously and Prelim Industrial Production is expected to rise by 2.50% vs. -15.5% previously.

USD/JPY-Last: 80.80

Australian dollar (AUD) – The Australian Dollar strengthened against its U.S. counterpart due to US Dollar weakness. But, the first quarter Australian GDP figures, which will be officially released later this week, may have fallen by more than 1% due to the Queensland floods. In addition, the March 11 earthquake and tsunami in Japan affected the economy too, due to the fact that Japan is Australia’s second largest trading partner after China. Today, Building Approvals are expected to decline by -1.70% vs. 9.10% previously and the Current Account is expected to be released at -10.1B vs. -7.3B.

AUD/USD - Last: 1.0700