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UFXBank Forex News: Uncertainty Over Greece Weakens Euro

Written by article default Thursday, 02 June 2011 08:42

USD Dollar (USD) – The Dollar was mixed against the other major currencies as reports showed slower than forecast jobs growth (ADP Employment came out at 38K vs. 177K forecast) and the ISM manufacturing data showed a reduction in orders (the ISM came out at 53.5 vs. 58.1 forecast), adding to concern that the U.S. economy is slowing. The NASDAQ and Dow Jones fell by 2.33% and 2.22% respectively. Crude oil decreased by 2.4%, closing at $100.29 a barrel. Gold (XAU) advanced by 0.4%, closing at $1543.20 an ounce. Today, Unemployment Claims are expected to be 420K vs. 424K last week, and the Revised Nonfarm Productivity is expected to rise from 1.6% to 1.8%.

Euro (EUR) – The Euro weakened in Forex trading against most of the major currencies as uncertainty over aid to Greece reduced the appeal of assets denominated in the single European currency. The EUR/USD is struggling with the 1.4300-1.4350 levels, and if the pair breaks down these levels, the Euro will probably decline towards 1.4230, or even less. Overall, EUR/USD traded with a low of 1.4307 and with a high of 1.4458. Today, ECB President Trichet Speaks.

EUR/USD – Last: 1.4348

British Pound (GBP) – The Pound fell against the Dollar after data from the manufacturing index fell to a 20 month low (52.1 vs. 54.2 forecast) and U.K. mortgage approvals, which dropped to the lowest level in four months, lead traders to prefer other assets. As long as the GBP\USD is trading below 1.6430, the pound’s momentum is very bearish and a short position is preferred. Overall, GBP/USD traded with a low of 1.6325 and with a high of 1.6496. Today, the Construction PMI is expected at 53.50 vs. 53.30 prior.

GBP/USD - Last: 1.6324

Japanese Yen (JPY) –The Yen gained against most of the major currencies as weaker data from the U.S. and the situation in Greece, added to concern that the global economic recovery is slowing, boosting demand for the Yen as a refuge. The USD/JPY’s momentum is bearish as long as the pair is trading below 81.50, and the main support level is located at 80.00. Overall, USD/JPY traded with a low of 80.67 and with a high of 81.50. No economic data is expected today.

USD/JPY-Last: 81.06

Canadian dollar (CAD) – The Canadian dollar decreased versus the Dollar as weaker U.S. data and weaker oil price caused investors to sell higher yielding assets. As long as the pair is trading above 0.9720 levels, and above the 20 moving average indicator, the US Dollar momentum is more attractive. The next resistance level on the four hours chart is located at 0.9820 levels. Overall, USD/CAD traded with a low of 0.9667 and with a high of 0.9781. No economic data is expected today.

USD/CAD - Last: 0.9780