Euro Gains Due to Apparent Greek Crisis Resolution | Learn Forex | GoLearnForex.com

Euro Gains Due to Apparent Greek Crisis Resolution

Written by article default Monday, 04 July 2011 10:10

USD Dollar (USD) – The Dollar weakened against most of the major currencies in forex trading, on Friday, during a trading session with low volatility. The ISM Manufacturing PMI came out at 55.3, which was better than the expected 51.5. The U.S. Stock Markets closed positive as the Dow Jones jumped by 1.36% and the NASDAQ gained 1.53% as the Euro zone’s debt crisis was seemingly no longer on the forefront of investors’ concerns. Crude oil was left virtually unchanged, closing at around $95 a barrel, but will probably rise if the 95.7 level is breached. Gold (XAU) did not manage to stay in the positive and fell below $1,480 an ounce, but quickly recovered and closed at $1,487 per ounce. Today, US banks will be closed in observance of the July 4^th Independence Day Holiday.

Euro (EUR) – The Euro gained against the greenback due to optimism that Greece will solve its debt crisis after finance ministers agreed to finalize a Greek bailout package by mid September. The Unemployment Rate stayed at 9.9%, unchanged as expected. On the daily chart, we can see six consecutive days of the Euro advancing. Holding above the key support level of 1.4470 keeps the positive momentum in the pair. Overall, EUR/USD traded with a low of 1.4435 and with a high of 1.4577. No major economic data is expected today.

EUR/USD – Last: 1.4555

British Pound (GBP) – The Pound gained modestly versus the dollar, but seems to be under heavy pressure to stay below the 1.61 area. The Manufacturing PMI data disappointed investors as it came out at 51.30, which was worse than the expected 52.30. The Sterling could gather more power against the greenback if the resistance level of 1.6130 is finally breached. Overall, GBP/USD traded with a low of 1.5986 and with a high of 1.6095. Today, the Construction PMI is expected at 53.6 vs. 54 previously.

GBP/USD - Last: 1.6072

Japanese Yen (JPY) – The dollar gained against the Yen as another day of struggle took place between these two currencies. In general, not much is expected from this pair as it has been in a trading range of approximately 150 pips for more than a month. A breakthrough may only occur for this pair if the resistance level of 81.30 is breached or the support of 79.70 is finally broken. Otherwise, we will continue to see fluctuation between those boundaries. Overall, USD/JPY traded with a low of 80.48 and with a high of 81.13. Today, the Average Cash Earnings report is expected to come out at -0.4% vs. -1.4% previously.

USD/JPY-Last: 80.75

Canadian dollar (CAD) - The Canadian dollar has climbed 5 consecutive days against the U.S. dollar on rising optimism that European leaders have agreed on a bailout package for Greece, hence investors' appetite for higher yielding assets  increased. Holding below the resistance level of 0.9620 keeps the trend negative for the pair. Overall, USD/CAD traded with a low of 0.9578 and with a high of 0.9649. Today, the RMPI is expected at -2.5% vs. 6.8% previously.

USD/CAD - Last: 0.9581