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Crude Oil increases to $85.40, Gold jumps to $1.675
Written by article default Tuesday, 11 October 2011 15:19
USD Dollar (USD) – In forex trading, the US Dollar fell versus most of the major's counterparts as global stocks advanced, sapping demand for the Greenback as a haven currency, causing investors to prefer higher yielding assets. Wall Street closed positive as the NASDAQ advanced by 3.50% and the Dow Jones rose by 2.97% on optimism that Europe will address its debt crisis and after improvement in American economic data. Crude oil climbed to the highest level in two weeks by 2.80% and closed at $85.40 a barrel due to signs that demand will increase. Gold (XAU) jumped by 2.38%, closing at $1,675 an ounce. No economic data is expected today.Euro (EUR) – The Euro strengthened the most in more than a year versus the US Dollar after French and German leaders pledged to deliver a plan to support banks and repeated a commitment to keep Greece in the single-currency bloc. The leaders promised that they will deliver a plan to recapitalize the region’s banks and address the Greek crisis by the 3rd of November. After the announcement, optimism rose in the market. Therefore the Euro stayed higher even as a report showed European investor confidence fell to the lowest in more than two years. Trading below the resistance level of 1.3700 will keep the momentum of the pair negative, but if the pair breaks above this resistance level, it may reach the 1.4060 level again. Overall, the EUR/USD traded with a low of 1.3377 and with a high of 1.3697. Today, the ECB President, Trichet is expected to speak.
EUR/USD – Last: 1.3630
|
Resistance |
1.3700 |
1.3780 |
1.3850 |
|
Support |
1.3600 |
1.3520 |
1.3450 |
British Pound (GBP) – The British Pound gained versus the US Dollar after German Chancellor Angela Merkel and French President Nicholas Sarkozy’s announcement that they will deliver a plan to recapitalize the region’s banks and address the Greek crisis. The trend for the pair remains bearish if it maintains its resistance level of 1.5730, but if the pair breaks that resistance level it may reach the 1.5950 level again. Overall, the GBP/USD traded with a low of 1.5422 and with a high of 1.5645. Today, Manufacturing Production is expected to decline by -0.10% vs. 0.10% previously.
GBP/USD - Last: 1.5630
|
Resistance |
1.5670 |
1.5730 |
1.5780 |
|
Support |
1.5580 |
1.5550 |
1.5500 |
Japanese Yen (JPY) – The Yen strengthened versus the US Dollar and most majors due to positive economic data. The Current Account came out better than the expected 0.65T vs. the 0.51T forecast. Technically, the USD/JPY is trading within a narrow range with no clear long term trend. If the pair breaks below the 76.00 level, the trend will continue downwards. Tomorrow, Core Machinery Orders are expected to grow by 4.5% vs. -8.2% previously.
USD/JPY - Last: 76.60
|
Resistance |
77.00 |
77.20 |
77.80 |
|
Support |
76.60 |
76.30 |
76.00 |
Canadian Dollar (CAD) – The Canadian Dollar strengthened against its US counterpart as stocks and commodities, such as crude oil, advanced on speculation that debt concern in Europe may ease, making higher-yielding currencies more attractive. The trend for the pair is bearish, if the pair maintains its resistance level of 1.0330. Today, Housing Starts are expected to grow by 187k vs. 185k previously.
USD/CAD - Last: 1.0290
|
Resistance |
1.0330 |
1.0400 |
1.0450 |
|
Support |
1.0280 |
1.0230 |
1.0180 |