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UFXBank Forex News: Euro Falls on Risk Aversion and Rising Unemployment

Written by article default Thursday, 09 June 2011 08:29

USD Dollar (USD) – The Dollar posted gains in forex trading versus most of the major currencies as greater risk aversion took place in the market. The stock markets in the U.S. closed negative as the Dow Jones declined by -0.18% and the NASDAQ fell by -0.97%. Crude Oil soared after a shortage in inventories was announced and jumped again above the $100 psychological area, closing at $100.80 a barrel. Gold (XAU) showed weakness and fell by -0.7% closing at $1537 an ounce. Today, the Trade Balance is expected at -48.6B vs. -48.2B previously, and Unemployment Claims are expected at 424K vs. 422K previously.

Euro (EUR) – The European currency fell on weakening stocks and rising unemployment in Greece, erasing gains from the previous day. German Industrial Production, came out at -0.6%, worse than the expected 0.1%. Breaking the support area of 1.4570 might fuel a negative trend in the pair. Overall, EUR/USD traded with a low of 1.4563 and with a high of 1.4695. Today, the Minimum Bid Rate is expected unchanged at 1.25%, and the ECB Press Conference notes will be released, which might generate some volatility in the pair.

EUR/USD – Last: 1.4629

British Pound (GBP) – The Pound weakened against the dollar and after Moody’s Investors Service said that the U.K.’s credit rating may be at risk if the government fails in debt decrease targets. Despite the decline of Sterling, holding above the support area of 1.6330 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.6346 and with a high of 1.6450. Today, the Official Bank Rate is expected unchanged at 0.5%, but later on, the MPC Rate Statement notes might generate some volatility in the pair.

GBP/USD - Last: 1.6410

Japanese Yen (JPY) – The yen strengthened across the board on concern that U.S. economic growth is slowing and concern regarding the Euro region’s debt crisis. The Final GDP came out at -0.9%, worse than the expected -0.8%. Breaking the support level of 79.70 might accelerate weakness in the pair. Overall, USD/JPY traded with a low of 79.68 and with a high of 80.27. Today, Tertiary Industry Activity is expected at 2.8% vs. -6% previously.

USD/JPY-Last: 80.20

Canadian dollar (CAD) – The Canadian dollar fell after the the FED said that the economy slowed in 4 of 12 regions of the U.S, which concerns Canada as the US is its largest trading partner. Housing Starts came out 184k, which is unchanged as expected. Breaching the strong resistance level of 0.9882 might push the pair back to parity. Overall, USD/CAD traded with a low of 0.9737 and with a high of 0.9819. Today, the Trade Balance is expected at 0.4B vs. 0.6B previously.

USD/CAD - Last: 0.9787