Gold Falls by More Than 2.5% | Learn Forex | GoLearnForex.com

Gold Falls by More Than 2.5%

Written by article default Tuesday, 13 September 2011 16:22

USD Dollar (USD) – In forex trading, the US Dollar closed slightly weaker against most of the majors after it was trading on the daily highs during most of the last trading session amid the debt crisis in Greece. In addition, US President Barack Obama said yesterday that “Businesses are having trouble staying open; you’ve got a world economy that is full of uncertainty right now in Europe and in the Middle East. Some events may be beyond our control, but this is something we can control.” His words described, in simple terms, the uncertainty that rules the financial markets these days.  The Equity Markets were trading negative until a few minutes before the closing bell, but then sharply reversed. Obama's plan to approve a program which will boost employment pushed the Stock Markets to close positive as the Dow Jones climbed by 0.63% and the NASDAQ gained 1.10%. Crude oil jumped by 1.1% and closed at $88.90 a barrel due to crude stockpiles shrinking in the US. Gold (XAU) has slumped by more than -2.5% and closed at $1,815.50 an ounce as the greenback's recovery increases. Today, the Federal Budget Balance is expected at -126.5B vs. -129.4B previously.

Euro (EUR) - The Euro recovered from its lowest level at 1.3500 since February against the US Dollar after the Financial Times reported that Italy was in contact with a Chinese investment firm that may buy its bonds. However, there is still much concern about the euro zone debt crisis before Italy sells its bonds today, especially Greece, which is nearing default. Breaking the support level of 1.3640 might push the pair lower to the 1.34 zones; otherwise a rebound to the 1.38 areas might be seen. Overall, the EUR/USD traded with a low of 1.3494 and with a high of 1.3694. Today, the French CPI is expected at 0.3% vs. -0.4% previously.

EUR/USD – Last: 1.3673

British Pound (GBP) - The Pound rebounded from a 7-month low against the US Dollar as the overall trend has changed and the greenback has started to lose gains. The RICS House Price Balance came out at -23%, worse than the expected -22%. Breaking the support level of 1.5830 might push the pair lower to the 1.56 zones; otherwise a rebound to the 1.6 areas might be seen. Overall, the GBP/USD traded with a low of 1.5771 and with a high of 1.5884. Today, the CPI is expected at 4.5% vs. 4.4% previously.

GBP/USD - Last: 1.5860

Japanese Yen (JPY) - The Yen has slightly advanced against the US dollar as a demand for refuge increased on concern over the slowing US economy and Eurozone debt problems. The USD/JPY’s trend is bearish if the pair maintains the resistance level at 77.00. The next support point on the daily chart lies at the 76.80 levels. When the pair breaches this level, a short position will be preferred. Overall, the USD/JPY traded with a low of 76.73 and with a high of 77.57. Today, no economic news is expected to be published.

USD/JPY-Last: 77.00

Canadian dollar (CAD) - The Canadian Dollar gained against the US Dollar even though earlier the USD/CAD pair was trading above the parity level. Crude oil soared and dragged the Loonie with it. Breaking the support level of 0.9940 might push the pair lower. Overall, the USD/CAD traded with a low of 0.9867 and with a high of 1.0024. Today, no economic news is expected to be published.

USD/CAD - Last: 0.9917