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Crude Oil Takes a Dive

UFXBank Research from UFX Bank at 12/10/09


Daily Review 10/12/2009

USD Dollar (USD) – The Dollar was mixed versus the majors after Inventories at U.S. wholesalers rose in October for the first time in more than a year, signaling companies are picking up the pace of orders as the economy shows signs of improvement. NASDAQ and Dow Jones strengthened by 0.5% respectively, Crude Oil fell by 2.7% after the report showed that Crude inventories fell by 3.8 million barrels and Crude price closed at 70.64$ a barrel, Gold(XAU) fell by 2% closing at 1120.4$ an ounce. Today, Trade Balance is expected at -36.9B vs. -36.5B prior. Unemployment Claims is expected to rise from 457K to 463K. Federal Budget Balance is expected at -136B vs. -176.4B prior.
EURO (EUR) – The Euro gained slightly versus the Dollar after U.S. stocks rose modestly, reviving demand for higher-yielding assets. Overall, EUR/USD traded with a low of 1.4668 and with a high of 1.4782. Today, ECB Monthly Bulletin will be released and ECB President Trichet will speak at the University of Cambridge.
EUR/USD - Last: 1.4703

Resistance 1.4782 1.49 1.5090
Support 1.4675

British Pound (GBP) – The Pound decreased versus the Dollar and Euro as the U.K.’s Treasury is expected to raise 550 million pounds targeting payouts at banks in the next few months and another 3 billion pounds from incomes earned after April 2011. Overall, GBP/USD traded with a low of 1.6167 and with a high of 1.6375. Today, MPC Rate Statement is expected to leave the Interest Rate unchanged at 0.5%. Asset Purchase Facility is expected to stay unchanged at 200B in case it will be higher the Pound is expected to drop.
GBP/USD - Last: 1.6254

Resistance 1.6350 1.6515 1.6670
Support 1.6165

Japanese Yen (JPY) –The Yen continued to strengthen versus the Dollar after Japanese stocks fell the most in 8 days. Core Machinery Orders came out as expected with -4.5%. Overall USD/JPY traded with a low of 87.36 and with a high of 88.7. No economic data expected today.
USD/JPY-Last: 87.86

Resistance 88.5 89.2 90.1
Support 87.35 87 86.6

Canadian dollar (CAD) – The Canadian Dollar strengthened against the Dollar amid speculation that yesterday’s decline to the lowest level in almost two weeks went too far. Overall, USD/CAD traded with a low of 1.0514 and with a high of 1.0661. Today, Trade Balance is expected at -0.6B vs. -0.9B prior.
CAD/USD - Last: 1.0568

Resistance 1.0590 1.0650 1.0670
Support 1.0533 1.0485 1.0433

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