Crude oil falls while Gold rises | Learn Forex | GoLearnForex.com

Crude oil falls while Gold rises

Written by article default Tuesday, 09 August 2011 00:00

USD Dollar (USD) – In forex trading, the US dollar strengthened against most of the major currencies after the US credit rating was cut from AAA to AA+ by the S&P, even after President Obama’s speech. The markets in Asia opened with a big drop and the Australian dollar traded below the support level of 1.0000 after the market closed, and when Asian stocks dropped and the market was bearish. Investors are panicked and anxiously awaiting the European market to reopen today, in order to see how the US and Euro markets behave. Wall Street closed negative as the NASDAQ declined by 6.90% and Dow Jones dropped by 5.55%. Crude oil fell to $75.60 a barrel and Gold (XAU) jumped to $1,753 an ounce. Today, Nonfarm Productivity is expected at -0.60% vs. 1.80% previously and the Interest Rate decision is expected to remain the same at 0.25%. The FOMC statement is expected today.

Euro (EUR) – The Euro fell against the US dollar to 1.4128 and rebounded to 1.4218 during the Asian market period. The EUR/USD’s momentum is bearish below the 1.4300 level and the next support level on the daily chart is at 1.4000. Overall, the EUR/USD pair traded with a low of 1.4128 and with a high of 1.4228. Today, the German Trade Balance is expected at 11.50B vs. 12.80B previously.

EUR/USD – Last: 1.4223

British Pound (GBP) – The Pound fell against the US Dollar as the dollar strengthened against most other major currencies on concerns that the American economy is declining. As long as the GBP/USD pair is trading below the 1.6350 level, the trend of the Pound is bearish. The next support level on the one hour chart is at 1.6200. The Moving Average Indicator supports a downward trend as well. Overall, the GBP/USD pair traded with a low of 1.6297 and with a high of 1.6336. Today, the Trade Balance is expected at -8.20B vs. -8.50B previously. Industrial Production is expected at 0.40% vs. 0.90 previously and the Manufacturing Production is expected at 0.20% vs. 1.80% as it was before.

GBP/USD - Last: 1.6310

Japanese Yen (JPY) –The Yen strengthened against the U.S Dollar as concern about a U.S. economic slowdown and the euro-region’s debt crisis spurred demand for the Yen. The main trend of the USD/JPY is bearish and as long as the pair is trading below 77.50, the Yen is more attractive and a short position is preferred. Overall, USD/JPY traded with a low of 77.04 and with a high of 77.84. Today, the Tertiary Industry Activity Index is expected at 1.10% vs. 0.90% previously.

USD/JPY-Last: 77.17

Canadian dollar (CAD) – The Canadian dollar fell against the US Dollar as Crude oil dropped to $75 a barrel.  As long as the pair is trading above 0.9950, a long position is preferred. Overall, USD/CAD traded with a low of 0.9911 and with a high of 0.9997. Today, the Housing Starts are expected at 195K vs. 201K previously.

USD/CAD - Last: 0.9977