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UFXBank Forex News: Greek Debt Flares, Euro Weakens

Written by article default Thursday, 16 June 2011 06:49

USD Dollar (USD) – The Dollar rose in forex trading against the other major currencies as concerns over Greek sovereign debt continued to curb risk appetite. There was also worse than expected data which was released from the U.S., which caused the stock markets to fall and pushed investors to buy the Dollar as a safety investment. The NASDAQ and Dow Jones weakened by 1.76% and 1.48 respectively. Crude oil plunged by 4.6% due to the sensitive situation in Greece and the negative data in oil inventories, and in the end closed at $94.81 a barrel. Gold (XAU) increased by 0.1%, closing at $1526.21 an ounce. Today, Unemployment Claims are expected to decline from 427K to 420K, Building Permits are expected to come out at 0.55M vs. 0.56M prior, and the Philly Fed Manufacturing Index is expected to rise from 3.90 to 7.00.

Euro (EUR) – The Euro dropped the most in almost six weeks against the Dollar after the Greek prime minister’s government lost political support as the European Union struggled to break a deadlock on a second financial rescue for the nation. The EUR/USD’s momentum is bearish after breaking the support level at 1.4300. As long as the pair is trading below 1.4250, the euro could continue to decline towards 1.4100, or even less. Overall, EUR/USD traded with a low of 1.4156 and with a high of 1.4438. Today, the ECB monthly bulletin will be released, and the CPI and core CPI are expected to remain at 2.7% and 1.6% respectively.

EUR/USD – Last: 1.4191

British Pound (GBP) – The Pound fell versus the Dollar after a report showed that U.K. jobless claims surged more than economists estimated in May, coming out at 19.6K vs. the 7.1K that was expected. As long as the GBP\USD is trading below 1.6300, the pound’s momentum is very bearish and a short position is preferred. The next support level on the four hour chart is located at the 1.6130 level. Overall, GBP/USD traded with a low of 1.6168 and with a high of 1.6377. Today, Retail Sales are expected to weaken from 1.10% to -0.50%.

GBP/USD - Last: 1.6198

Japanese Yen (JPY) – The Yen weakened versus the Dollar after negative data was released in the US and as a result of the situation in Greece, which caused panic during the day and led investors to stick with the Dollar. The USD/JPY’s momentum is bullish and as long as the pair is trading above 80.60, a long position is preferred. The next resistance level on the one hour chart is located at 81.10. Overall, USD/JPY traded with a low of 80.38 and with a high of 81.06. No economic data is expected today.

USD/JPY-Last: 80.94

Canadian dollar (CAD) – The Canadian Dollar weakened versus the US Dollar as data showed Canadian factory sales dropped in the last month ( came out -1.3% vs. 1.9% prior). Also, the weakness of oil, which plunged yesterday, caused the Canadian Dollar to be weaker against the US Dollar. As long as the pair is trading above the 0.9720 level, the US Dollar is more relevant, the next resistance level on the daily chart is located at 0.9850. Overall, USD/CAD traded with a low of 0.9670 and with a high of 0.9829. Today, Foreign Securities Purchases are expected to come out at 5.45B vs. 634B prior.

USD/CAD - Last: 0.9789