Announcement From Obama Pushed the USD for Mixed Results
UFXBank Research from UFX Bank at 01/25/10
Daily Review 25/01/2010
USD Dollar (USD) – The Dollar finished mixed after Obama administration's plan to limit the size of the nation's largest banks and what trading activities they could engage in. Wall Street finished low. Dow Jones tumbled by -2.09% and NASDAQ depreciated by -2.67%. Crude oil plunged and fell to $74.15 reaching a one-month low. Gold (XAU) almost unchanged closed at 1093$ an ounce. Today, The Existing Home Sales is expected at 5.95M vs. 6.54M previously.
EURO (EUR) – The Euro appreciated versus the Dollar after finding support at 1.4080. The Industrial New Orders supported the uptrend coming out at 1.6% better than expected 0.6%. If the pair sustains to keep above the 1.4080 level a continuation of the uptrend can be seen till 1.4220. Overall, EUR/USD traded with a low of 1.4065 and with a high of 1.4181. Today, The Gfk German Consumer Climate is expected at 3.2 vs. 3.3 previously.
EUR/USD – Last: 1.4160
Resistance 1.42 1.4265 1.43
Support 1.41 1.4065 1.403
British Pound (GBP) – The Sterling lost its ground against the Dollar after it touched its critical resistance level at 1.6280 and since then it felt to 1.61 levels. The Retail Sales came out 0.3% worse than expected 1.3%. This data extended the weakness of the Pound also against the Euro. As long as the Pound keeps above the 1.6080 level it can rebound back to 1.6280 zones. Overall, GBP/USD traded with a low of 1.6077 and a high of 1.6282. Today, no economic data expected.
GBP/USD - Last: 1.6015
Resistance 1.62 1.625 1.632
Support 1.6075 1.602 1.595
Japanese Yen (JPY) – The Dollar weakened versus the Yen ask risk aversion tends to favor Yen over Dollar, and technically pair has room to continue. Bank of Japan policy makers are prepared to consider expanding an emergency loan program for banks and increasing purchases of government debt. If the 89.80 level will break, an acceleration of the downtrend can be seen. Overall, USD/JPY traded with a low of 89.77 and a high of 90.55. No economic data expected today.
USD/JPY-Last: 90
Resistance 90.6 91.2 91.85
Support 89.8 89.45 89.05
Canadian dollar (CAD) – The Dollar keeps gaining against the Canadian Dollar for the fourth day as stocks tumbled and crude oil dropped. Uncertainty over U.S. banking regulations, China’s monetary policy and Greece’s finances declined investors’ appetite for higher-yielding assets. The Core Retail Sales came out 0% worse than expected 0.2%. Breaching the 1.06 level can extend dollar's uptrend. Overall, USD/CAD traded with a low of 1.0463 and with a high of 1.06. Today, no economic data expected.
USD/CAD - Last: 1.0560
Resistance 1.06 1.062 1.065
Support 1.0525 1.0465 1.044
