Confidence Among US Consumers Falls
UFXBank Research from UFX Bank at 10/28/09
Daily Review 28/10/2009
USD Dollar (USD) – The Dollar strengthen during yesterday trading session as Confidence among U.S. consumers unexpectedly fell in October for a second month. The Conference Board’s confidence index dropped to 47.7 from a revised 53.4 in September. NASDAQ decreased by 1.2% and Dow Jones slightly rose by 0.14%. Crude oil rose by 1% closing at 79.55$ a barrel after a volatile trading session as investors wait for the oil inventories today. Gold (XAU) weakened by 0.7% closed at 1035.4$ an ounce. Today, Core Durable Goods Orders are expected at 0.6% vs. -0.3% prior, New Home Sales are expected to rise from 429K to 443K.
EURO (EUR) –The Euro weakened versus the Dollar for the third day in a row on concern a rally in stocks and commodities can’t be sustained. M3 Money Supply came out worse than expected at 1.8% vs. 2.1% forecast. Overall, EUR/USD traded with a low of 1.4770 and with a high of 1.4926. Today, German Prelim CPI is expected at 0.1% vs.-0.4% previously.
EUR/USD - Last: 1.4811
Resistance 1.4824 1.4927 1.5046
Support 1.4770
British Pound (GBP) – The Pound strengthened against the Dollar after the Confederation of British Industry's distributive trade's survey reported sales balance rose to +8 in October from +3 in September, better than economists' forecasts of a rise to +5. This is the fastest pace of growth since December 2007. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6438. No economic data expected today.
GBP/USD - Last: 1.6358
Resistance 1.6438 1.6636 1.6693
Support 1.6286 1.6250
Japanese Yen (JPY) –The Yen rose against the Dollar for the first time in 6 days as a plunge in Treasury yields after the record $44 billion auction in two-year notes made the Dollar less attractive to Japanese investors. USD/JPY traded with a low of 91.70 and with a high of 92.32. Retail sales came out at -1.4% vs. -1.5% forecast. No economic data expected today.
USD/JPY-Last: 91.18
Resistance 91.57 92.19 92.32
Support 90.77 90.48
Canadian dollar (CAD) – The Canadian Dollar appreciated from a three-week low, gaining for the first time in four days amid speculation its decline was too big to be sustained after it reached a key technical level. Overall, USDCAD traded with a low of 1.0626 and with a high of 1.0716. Today, BOC Gov Carney Speaks.
CAD/USD - Last: 1.0664
Resistance 1.0696 1.0717
Support 1.0630 1.0501 1.0449
