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UFXBank Forex News: Euro Rises as USD Sinks on Jobs Data

Written by article default Monday, 06 June 2011 09:42

USD Dollar (USD) – The Dollar fell in Forex trading against most of the major currencies after bad economic data came out last Friday. The Non Farm Payrolls came out at 54.00K worse than the expected 169.00K, the unemployment rate came out at 9.10%, worse than expected at 9.00%, and the Private Nonfarm Payrolls came out at 83.00K, worse than expected 18.00K. The NASDAQ decreased by 1.46% and the Dow Jones weakened by 0.79%. Crude oil fell by 0.2%, closing at $100.22 a barrel. The price could have been lower, but a weak Dollar gave cushion to the fall. Gold (XAU) rose by 0.6%, closing at $1542.4 an ounce after the NFP came out last Friday and speculation grew that there will be progress on the European’s debt crisis. Today, Treasury Secretary Geithner Speaks.

Euro (EUR) – The euro rose to 1 month high versus the dollar on prospects that officials from the European Union will reiterate their intention to prepare a new aid package for Greece, easing concern over the region’s debt crisis. The Euro also gained last Friday as a result of the NFP coming out worse than expected in the U.S. The EUR/USD momentum is bullish after crossing the resistance level of 1.4650, and the pair will likely continue toward 1.4800. Overall, EUR/USD traded with a low of 1.4450 and with a high of 1.4656. Today, the PPI is expected at 0.80% vs. 0.70% previously.

EUR/USD – Last: 1.4638

British Pound (GBP) – The Pound strengthened against the U.S Dollar after U.K. factory production strengthened in the second quarter as companies benefited from increasing export orders. The pair is facing a strong resistance at 1.6450. As long as the GBP/USD is trading below 1.6450, the pound’s momentum is bearish, and a short position is preferred. The next support level on the four hour chart is located at 1.6300 levels. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6455. Today, no major economic data is expected.

GBP/USD - Last: 1.6439

Japanese Yen (JPY) –The Yen rose versus the Dollar after a release of bad economic data came out from the U.S last Friday. The USD/JPY’s momentum is bearish and as long as the pair is trading below 80.50, a short position is preferred. The next support level on the four hour chart is located at 79.50. Overall, USD/JPY traded with a low of 80.03 and with a high of 81.00. No economic data is expected today.

USD/JPY-Last: 80.25

Canadian dollar (CAD) – The Canadian dollar fluctuated versus the US Dollar last Friday, but closed with small drop. As long as the pair is trading above the 0.9700 level and above the 10 moving average on the daily chart, the US Dollar is more attractive. The next resistance level on the daily chart is located at 0.9850 levels. Overall, USD/CAD traded with a low of 0.9744 and with a high of 0.9851. Today, Building Permits are expected at -7.00% vs. 17.20% previously.

USD/CAD - Last: 0.9787