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UFXBank Forex News: Euro Weakens as Concerns Over Greece Default Mount

Written by article default Thursday, 23 June 2011 09:11

USD Dollar (USD) – The Dollar rose in forex trading against the other major currencies as Federal Reserve Chairman Ben S. Bernanke commented on the economy at a press conference after policy makers said they would maintain record stimulus after a Treasury purchase program ends. The Interest rate was released and stayed unchanged at 0.25%. Wall Street closed negative as the NASDAQ weakened by 0.67% and the Dow Jones fell by 0.66%. Crude oil advanced by $1.24, closing at $95.41 a barrel. Gold (XAU) increased by 0.5%, and closed at $1553.40 an ounce. Today, Unemployment Claims are expected to be 410K vs. 414K last week, and New Home Sales are expected to weaken from 323K to 310K.

Euro (EUR) – The Euro weakened versus the Dollar amid speculation that Greek Prime Minister George Papandreou will struggle to pass additional austerity measures, even after winning a confidence vote. Also, the Dollar was strong due to the FOMC press Conference, and this supported a weaker Euro during the evening session. The EUR/USD’s momentum is bearish as long it’s trading below 1.4360 levels and we will probably see the Euro around 1.4260 or even less. Overall, EUR/USD traded with a low of 1.4341 and with a high of 1.4442. Today, ECB President Trichet Speaks, the Manufacturing PMI is expected to decline from 54.60 to 53.80, and the Services PMI is expected to come out at 55.30 vs. 56.00 previously.

EUR/USD – Last: 1.4312

British Pound (GBP) – The Pound fell to the lowest level in three weeks versus the Dollar as minutes released today from the Bank of England’s most recent meeting, showed that more policy makers voted to keep interest rates at a record low this month. As long as the GBP/USD is trading below 1.6150, the pound’s momentum is still very bearish and a short position is preferred. The next support level on the daily chart is located at 1.5920. Overall, GBP/USD traded with a low of 1.6061 and with a high of 1.6263. Today, CBI Realized Sales are expected to be 13.00 vs. 18.00 previously.

GBP/USD - Last: 1.6046

Japanese Yen (JPY) –The Yen weakened a bit versus the Dollar owing to Bernanke’s declaration which supported a stronger Dollar. The USD/JPY has been struggling with 80.00-80.50 levels during the last three days, and only if the pair breaks above 81.00 levels, will the US Dollar will be bullish again. Overall, USD/JPY traded with a low of 80.01 and with a high of 80.38. No economic data is expected today.

USD/JPY-Last: 80.53

Canadian dollar (CAD) – The Canadian Dollar stayed weaker versus the greenback after the Federal Reserve said it would let asset purchases end and maintain record monetary stimulus. As long as the pair is trading below 0.9780 levels, the Canadian Dollar is more relevant, the next support level on the one hour chart is located at 0.9700 levels. Overall, USD/CAD traded with a low of 0.9700 and with a high of 0.9753. No economic data is expected today.

USD/CAD - Last: 0.9735