Cable Falls as Unemployment Rate Rises | Learn Forex | GoLearnForex.com

Cable Falls as Unemployment Rate Rises

Written by article default Thursday, 01 September 2011 16:04

USD Dollar (USD) – In forex trading, the US Dollar strengthened against the other major currencies after the ADP Nonfarm Employment Change came out at 91K, worse than the expected 109K, which made investors prefer the dollar as a safe haven. The US Stock Markets closed positive sending the Dow Jones to rise by 0.46% and the NASDAQ to gain 0.13%. Crude oil fell by 0.1% and closed at $88.81 a barrel. Gold (XAU) is once again trading above the 1800 area, increased by 0.1% and closed at $1,831.70 an ounce. Today, the Initial Jobless Claims are expected to come out at 409K vs. 417K previously and the ISM Manufacturing Index is expected at 48.50 vs. 50.90 previously.

Euro (EUR) – The Euro fell against the US Dollar after the Unemployment Rate came out 10% worse than the expected 9.90%. Breaking the support area of 1.4350 might push the pair lower down the 1.4270 zones, otherwise a rebound back to the 1.4440 levels is possible. Overall, the EUR/USD traded with a low of 1.4356 and with a high of 1.4468. Today, the German GDP is expected to stay at 0.10% and the Manufacturing PMI is also expected to stay at 49.70.

EUR/USD – Last: 1.4370

British Pound (GBP) – The Pound fell against the US Dollar after it failed to breach the resistance level of 1.6330. Breaking the support area of 1.6200 might push the pair lower to the 1.6130 zones; otherwise a rebound back to the 1.6480 levels is possible. Overall, the GBP/USD traded with a low of 1.6229 and with a high of 1.6333. Today, the Manufacturing PMI is expected at 49.50 vs. 49.10 previously.

GBP/USD - Last: 1.6281

Japanese Yen (JPY) – The Yen weakened against the US Dollar, reaching the high of the tunnel at nearly 77.00. If the pair doesn't break this resistance level, it might fall again to 76.00 areas. Not much is expected from this pair as it capped in a tight range for more than a fortnight and unless we see the pair breaking the 76.00 lows or breaching above the 77.00 highs, we might expect this pair to hold this range for another extended period. Overall, the USD/JPY traded with a low of 76.55 and with a high of 76.91. No economic data is expected today.

USD/JPY-Last: 76.80

Canadian dollar (CAD) – The Canadian Dollar fell against the US Dollar even though Black Gold posted significant gains on speculation that U.S. policy makers will support the economy if it deteriorates. The GDP came out at 0.20% better than the expected 0.10%. Breaking the critical support level of 0.9770 might extend the pair’s decline. Overall, USD/CAD traded with a low of 0.9774 and with a high of 0.9785. Today, no data is expected.

USD/CAD - Last: 0.9772