UFXBank Forex News: Euro Drops as Greece Nears Default | Learn Forex | GoLearnForex.com

UFXBank Forex News: Euro Drops as Greece Nears Default

Written by article default Wednesday, 22 June 2011 09:13

USD Dollar (USD) – The Dollar fell yesterday against the major currencies but then rose after Greek Prime Minister George Papandreou won a confidence vote amid investor concerns that the government will struggle to pass austerity measures to stave off default. Wall Street closed very positive as the NASDAQ rose by 2.19% and the Dow Jones strengthened by 0.91%. July Crude oil contracts rose by 14 cents, closing at $93.40 a barrel.  August contracts of rose by 54 cents. Gold (XAU) increased for the 6^th day and closed at $1546.40 an ounce. Today is a very important day for the markets and we should be very alert for economic data regarding the House Price Index, which is expected at -0.20% vs. -0.30 previously. Also, pay close attention to the Interest Rate Decision, which is expected unchanged at 0.25%. We also have Crude Oil Inventories expected at -1.60M vs. -3.40M last week, we are expecting the FOMC Statement, and the Fed Chairman Bernanke will speak.

Euro (EUR) – Europe’s single currency declined in forex trading versus a majority of its most-traded peers as the ballot cleared way for a separate vote on a 78 billion-euro ($112 billion) package of budget cuts and asset sales. The EUR/USD’s trend is bullish and testing the resistance at 1.4440. As long as the pair is trading below 1.4440, the daily trend is bearish. Overall, EUR/USD traded with a low of 1.4300 and with a high of 1.4431. Today, Consumer Confidence is expected at -10.40 vs. -10.00 previously.

EUR/USD – Last: 1.4368

British Pound (GBP) – The Pound gained against the Dollar for the 3^rd day after CBI Industrial Trends Orders came out at 1.00, better than the expected -5.00. As long as the GBP/USD is trading below 1.6300, the pound’s momentum is still bearish and a short position is preferred, the next resistance level on the one hour chart is located at 1.6250 and the pair already tested this level again last night, but after hitting, it fell again to the 1.6200 area. If it breaks this level, the pound will probably continue towards 1.6300. Overall, GBP/USD traded with a low of 1.6166 and with a high of 1.6252. Today, the MPC Meeting Minutes are expected.

GBP/USD - Last: 1.6214

Japanese Yen (JPY) – The Yen is still moving in a range between 80.00 to 80.33 levels for the 3^rd day as investors are waiting for a decision from the European central bank about the debt of Greece and the aid package expected. The resistance level is at 80.40, the support level is at 80.00, and you can adjust your limit orders according these levels for short or long positions. Overall, USD/JPY traded with a low of 80.04 and with a high of 80.33. No economic data is expected today.

USD/JPY-Last: 80.24

Canadian dollar (CAD) – Canada’s dollar rose against the majority of its most-traded counterparts as stocks and commodities rallied before a government confidence vote in Greece that may determine whether it avoids default.  The Core Retail Sale came out at 0.00%, worse than the expected 0.60% .The next resistance level on the daily chart is located at 0.9800 and the support level sits at 0.9670 levels. Overall, USD/CAD traded with a low of 0.9706 and with a high of 0.9804. Today, no major economic data is expected.

USD/CAD - Last: 0.9732