Dollar has weakened versus most majors
UFXBank Research from UFX Bank at 02/11/10
Daily Review 11/02/2010
USD Dollar (USD) – The Dollar gained against most majors after Federal Reserve Chairman Ben S. Bernanke said the central bank may raise the discount rate “before long” as part of the “normalization” of Fed lending, in addition, Trade Balance came out worse than expected at -40.2B vs. -35.8B forecast. NASDAQ and Dow Jones weakened by 0.14% and 0.20% respectively, Crude oil rose by 0.9% closing at 74.5$ a barrel, Gold(XAU) decreased by 0.4% closing at 1073$ an ounce. Today, Initial Jobless Claims are expected to decrease from 480K to 460K.
EURO (EUR) – The Euro fell against the Dollar after a German government official said the European Union will probably stop short of announcing an aid package for debt-stricken Greece. Speculations about loan guarantees for Greece and hints from Fed Chairman Bernanke about a possible rate hike dragged the Euro lower. We can see on the daily graph a clear downward trend therefore the momentum is still bearish, moving average support this momentum as well , Overall, EUR/USD traded with a low of 1.3676 and with a high of 1.3812. Today, EU economic Summit will be held during the day and is speculated to announce Greece's bailout details. ECB Monthly Bulletin will be released today.
EUR/USD – Last: 1.3788
Resistance 1.3812 1.3896 1.4025
Support 1.3675 1.3620 1.3587
British Pound (GBP) –The Pound declined against the Dollar and the Euro after the Bank of England reduced its economic growth forecast and Governor Mervyn King signaled he may extend bond purchases. Manufacturing Production came out better at 0.9% vs. 0.4% forecast .The main resistance on the daily graph is 1.5800 as long the price is below a short position is preferred. Overall, GBP/USD traded with a low of 1.5570 and a high of 1.5764. No economic data expected today.
GBP/USD - Last: 1.5639
Resistance 1.5765 1.5920
Support 1.5570 1.5535
Japanese Yen (JPY) –The Yen declined versus the Dollar after testimony of Federal Reserve Chairman Ben S. Bernanke on the strategy for exiting from low interest rates and liquidity programs. The pair USD/JPY has been trading with a narrow range in the last few days, if it breaks 90.10 levels the momentum will be bullish. Overall, USD/JPY traded with a low of 89.25 and with a high of 90.06. No economic data expected today due to bank holiday.
USD/JPY-Last: 89.89
Resistance 90.11 91.28
Support 89.15 88.80 88.55
Canadian dollar (CAD) – The Canadian Dollar advanced to a one-week high as stocks and Crude oil erased losses, reviving demand for currencies tied to economic growth. Trade Balance came out at -0.2B vs. - 0.1B forecast. As long the USD/CAD is below 1.0700 levels a short position is preferred, the main support is 1.0550 and the 10 moving average is above therefore it support a bearish momentum. Overall, USD/CAD traded with a low of 1.0597 and with a high of 1.0707. No major economic data expected today.
CAD/USD - Last: 1.0587
Resistance 1.0636 1.0707 1.0780
Support 1.0575 1.0545
