USD Weakens As Retail Sales Data Climbs | Learn Forex | GoLearnForex.com

USD Weakens As Retail Sales Data Climbs

Written by article default Monday, 15 August 2011 16:21

Technical Analysis

USD Dollar (USD) – In forex trading, the Dollar weakened against most other major currencies as Retail Sales figures increased last month by the most in four months, coming out at 0.5% vs. 0.3% prior, which led investors to be optimistic and to prefer riskier assets. Wall Street closed positive as the NASDAQ rose by 0.61% and the Dow Jones by 1.13% respectively. Crude oil declined by 0.40%, closing at $85.34 a barrel. Gold (XAU) fell by 0.50%, owing to the Dollar’s decline, and closing at $1,742 an ounce. Today, the TIC Long-Term Purchases are expected to rise from 23.6B to 30.10B. The NY Empire State Manufacturing Index is expected at -0.40% vs. -3.80%.

Euro (EUR) – The Euro rose against the US Dollar as Wall Street reacted positively after Retail Sales data in the US came out better than expected, supporting higher yielding assets. The EUR/USD’s momentum is bullish above the 1.4220 level and the next resistance level on the daily chart is at 1.4400. Overall, the EUR/USD traded with a low of 1.4149 and with a high of 1.4291. No economic data is expected today.

EUR/USD – Last: 1.4283

British Pound (GBP) – The British Pound gained against the US Dollar after the release of positive U.S. data caused the markets to be bullish, drifting the pound as well. As long as the GBP/USD is trading above the 1.6200 level, the trend of the pound is bullish and the next resistance level on the one hour chart is at 1.6340. The Moving Average indicator supports an uptrend trend as well. Overall, the GBP/USD pair traded with a low of 1.6166 and with a high of 1.6313. No economic data is expected today.

GBP/USD - Last: 1.6282

Japanese Yen (JPY) –The Yen fluctuated against most major currencies after Finance Minister Yoshihiko Noda said he’s ready to intervene in the market again to stem an advance in Japan’s currency that risks slowing an economic recovery. The main trend of the USD/JPY is strongly bullish and as long as the pair is trading below 77.40, the Yen is more attractive and a short position is preferred. Overall, the USD/JPY pair traded with a low of 76.51 and with a high of 77.01. No economic data is expected today.

USD/JPY-Last: 76.80

Canadian dollar (CAD) – The Canadian Dollar fluctuated against the US Dollar as concern that the global economy is slowing down caused the market to be unstable. As long as the pair is trading above the 0.9780 level, the momentum of the US Dollar is totally positive and the next resistance level on the daily chart is located at the 1.0000 level. Overall, USD/CAD traded with a low of 0.9851 and with a high of 0.9918. No economic data is expected today.

USD/CAD - Last: 0.9884