Black Gold Jumps by 2.3% due to Positive Stocks Trend | Learn Forex | GoLearnForex.com

Black Gold Jumps by 2.3% due to Positive Stocks Trend

Written by article default Wednesday, 14 September 2011 16:15

Daily Market Review 14/09/2011

USD Dollar (USD) – In forex trading, the US Dollar traded mixed against the other major currencies as the debt crisis concern in Greece didn’t really make headlines. US equities advanced on the hope that further political support for Greece would be applied. The Federal Budget Balance was published at -134.2B, worse than the expected -128.4B. The fiscal deficit in August was the highest since March. The Stock Market closed positive as the Dow Jones climbed by 0.4% and the NASDAQ gained 1.49%. Crude oil jumped by 2.3% and closed at $90.20 a barrel due to the positive trend in the equity markets. Gold (XAU) has joined the positive momentum of the Markets and appreciated by 0.9%, closing at $1,830 an ounce as investors had a good chance to buy it at the low price of $1,800 earlier. Today, the Core Retail Sales are expected at 0.2% vs. 0.5%. Crude Oil Inventories are expected at -3.1M vs. -4M previously. If the Inventories do shrink, we might expect another positive day for Black Gold.

Euro (EUR) - The Euro rose against the US Dollar as stocks gained, fueled by a jump in French bank shares and higher investor demand for riskier assets. Confidence in the European currency was established after Italy was issuing 5-year bonds worth 3.9B Euro and an Interest Rate set at 5.6%. The French CPI came out at 0.5%, better than the expected 0.3%. Holding above the support level of 1.3640 might push the pair higher; otherwise a rebound back to the 1.35 zones might be seen. Overall, the EUR/USD traded with a low of 1.3557 and with a high of 1.3738. Today, the Industrial Production is expected higher, at 1.5% vs. -0.7% previously.

EUR/USD – Last: 1.3691

British Pound (GBP) - The Pound failed to hold gains against the greenback amid concern that due to the debt crisis, the UK's partner, Europe, will hurt Britain's economic growth. The CPI came out unchanged as expected at 4.5%. The Pound also depreciated as a government report showed inflation accelerated in August. Holding below the resistance level of 1.5830 keeps the momentum negative for the pair. Overall, the GBP/USD traded with a low of 1.5760 and with a high of 1.5866. Today, the Claimant Count Change is expected at 34.8k vs. 37.1k previously. The Bank of England Gov is also expected to speak.

GBP/USD - Last: 1.5796

Japanese Yen (JPY) - The Yen has slightly advanced against the US Dollar, mostly trading in a very tight range. The demand for refuge increased on concern over the slowing US economy and Euro zone debt problems. The USD/JPY’s trend is bearish if the pair maintains the resistance level at 77.00. The next support level on the daily chart lies at the 76.40 levels. When the pair breaks this level, a short position will be profitable. Overall, the USD/JPY traded with a low of 76.79 and with a high of 77.24. Today, no economic news is expected to be published.

USD/JPY-Last: 76.90

Canadian dollar (CAD) - The Canadian Dollar gained for a second day against the US Dollar as risk appetite drove investors. Material prices increased, as crude oil dragged the loonie with it. Breaking the next support level of 0.9830 will push the USD/CAD pair lower. Overall, the USD/CAD traded with a low of 0.9848 and with a high of 0.9974. Today, no economic news is expected to be published.

USD/CAD - Last: 0.9853