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UFXBank Forex News: Euro Reaches 2-Week High

Written by article default Thursday, 30 June 2011 08:16

USD Dollar (USD) – The Dollar weakened against most of the major currencies as Greece's parliament approved a five year austerity plan designed to avert the eurozone’s first sovereign debt default. In addition, Pending Home Sales came out better than expected at 8.2% vs. 2.4% forecast. Wall Street closed positive as the NASDAQ advanced by 0.41% and the Dow Jones by 0.60%. Crude oil jumped by 2.0% due to a decline in the Crude Oil Inventories index which came out at -4.4M vs. -1.5M forecast and in the end, closed at $94.77 a barrel. Gold (XAU) advanced by 0.7% and closed at $1510.40 an ounce. Today, Unemployment Claims are expected to weaken from 429K to 420K.

Euro (EUR) – The Euro reached a two-week high in forex trading against the Dollar after Greek lawmakers approved a package of austerity measures ($112 billion) amid protests and a 48-hour strike. Moreover, investors raised bets that the European Central Bank will increase interest rates next week after the passage of austerity measures by Greek lawmakers which gave the Euro positive direction. The EUR/USD’s resistance level is located at 1.4530 on the daily chart, and the Euro will likely strengthen further to 1.4600. Overall, EUR/USD traded with a low of 1.4327 and a high of 1.4448. Today the Greek Government will have another vote on the debt crisis where ECB President Trichet will speak. German Retail Sales are expected to rise from 0.30% to 0.70% and the CPI Flash Estimate is expected to come out at 2.80% vs. 2.70% prior.

EUR/USD – Last: 1.4503

British Pound (GBP) – The Pound rose versus the Dollar as Greek’s austerity plan boosted investor appetite for higher yielding assets. As long as the GBP/USD is trading below 1.6120 and below the 20 moving average, the pound’s momentum is still very bearish on the daily chart. On the other hand, if the pair crosses 1.6120 levels, the pound will probably hit 1.6200 and even more. Overall, GBP/USD traded with a low of 1.5970 and with a high of 1.6074. Today, the Nationwide HPI is expected to be 0.10% vs. 0.30% previously.

GBP/USD - Last: 1.6105

Japanese Yen (JPY) –The Yen strengthened against the Dollar as the weak Dollar was further reduced by headlines regarding Greece, which caused the other major currencies to be stronger, carried the Yen along with them. The USD/JPY has been struggling with 80.50-81.20 levels during the past three days, only if the pair breaks above 81.20 levels will the US Dollar will be bullish again. On the other hand, if the pair moves below the 80.40 level, the yen will be more attractive. Overall, USD/JPY traded with a low of 80.56 and with a high of 81.18. No economic data is expected today.

USD/JPY-Last: 80.43

Canadian dollar (CAD) – The Canadian Dollar climbed the most since December versus the Dollar after consumer prices rose more than forecast, prompting traders to ratchet up bets that the central bank will resume raising interest rates. The CPI came out at 0.7% vs. 0.2% forecast and the Core CPI came out at 0.5% vs. 0.2% forecast. As long as the pair is trading below 0.9800 levels, the US Dollar is on a negative trend, and the next support level on the daily chart is located at 0.9650. Overall, USD/CAD traded with a low of 0.9687 and with a high of 0.9825. Today, the GDP is expected to turn negative from 0.30% to -0.10%.

USD/CAD - Last: 0.9680