CAD Falls Against USD as Oil Drops | Learn Forex | GoLearnForex.com

CAD Falls Against USD as Oil Drops

Written by article default Monday, 08 August 2011 14:41

USD Dollar (USD) – In forex trading, the US dollar weakened against most of the major currencies on concern that economic slowdown will worsen and after the S&P cut the American credit rating from AAA to AA+ after the market closed, and when Asian stocks dropped. Investors are panicked and anxiously awaiting the European market to reopen today, in order to see how the market will behave. Futures pared losses after Group of Seven nations said they will take every step necessary to stabilize financial markets. The Nonfarm Payrolls came out at 117K better than the expected 95K and the Unemployment Rate came out at 9.10% better than the expected 9.20%. Wall Street closed mixed as the NASDAQ declined by 0.94% and Dow Jones rose by 0.54% respectively. Crude oil fell to $83.66 a barrel and Gold (XAU) jumped to $1,696 an ounce. No major economic data is expected today.

Euro (EUR) – The Euro rose against the US dollar before the Federal Reserve meeting today, only to decline on monetary policy after the S&P cut the U.S one level. German Industrial Production came out at -1.10% which was worse than the expected 0.10%. The EUR/USD’s momentum is bearish below the 1.4400 level and the next support level on the daily chart is at 1.4000. Overall, the EUR/USD pair traded with a low of 1.4287 and with a high of 1.4430. No major economic data is expected today.

EUR/USD – Last: 1.4315

British Pound (GBP) – The Pound rose against the US Dollar after the S&P cut the rating of the U.S to AA+ for the first time. The Halifax HPI came out at 0.30%, better than the expected 0.10%. As long as the GBP/USD pair is trading below the 1.6500 level, the trend of the Pound is bearish. The next support level on the one hour chart is at 1.6380. The Moving Average Indicator supports a downward trend as well. Overall, the GBP/USD pair traded with a low of 1.6404 and with a high of 1.6477. No major economic data is expected today.

GBP/USD - Last: 1.6260

Japanese Yen (JPY) –The Yen strengthened against the U.S Dollar despite investors concern from the new credit rating of the US and uncertainty before the Federal Reserve meeting. The main trend of the USD/JPY is bearish and as long as the pair is trading below 78.50, the USD is less attractive and a short position is preferred. Overall, USD/JPY traded with a low of 77.90 and with a high of 78.45. No economic data is expected today.

USD/JPY-Last: 78.03

Canadian dollar (CAD) – The Canadian dollar fell against the US Dollar as crude oil dropped on economic slowdown concerns in the US and the fact that the US is the second oil consumer, after China. The Employment Change came out at 7.10K, which was worse than the expected 20K. The Unemployment Rate came out at 7.20%, which was better than the expected 7.40%. The Levy PMI came out at 45.40, worse than the expected 62.90.  As long as the pair is trading above 0.9800, a long position is preferred. Overall, USD/CAD traded with a low of 0.9797 and with a high of 0.9863. No major economic data is expected today.

USD/CAD - Last: 0.9841