Employment Changes Worse than Expected

UFXBank Research from UFX Bank at 01/07/10

 

Daily Review 07/01/2010

USD Dollar (USD) – The Dollar weakened against most majors owing to the ADP Employment Change that came out worse than expected showed that Companies in the U.S. cut an estimated 84,000 jobs in December, also ISM Non-Manufacturing PMI came out worse than expected at 50.1 vs. 50.5 forecast . NASDAQ decreased by 0.33% and Dow Jones rose by 0.02%. Crude oil traded near a 14-month high in New York as an industry report showed a decline in U.S. crude inventories, strengthened by 1.7% closed at 83.18$ a barrel. Gold (XAU) rose by 1.6% closed at 1136.5$ an ounce. Today, Unemployment Claims is expected to rise from 432K to 449K.
EURO (EUR) – The Dollar declined against the Euro as minutes of the Federal Reserve’s Dec. 15-16 meeting showed policy makers debated increasing and extending asset purchases should the economy weaken. If the price goes above 1.4500 the momentum is bullish. Overall, EUR/USD traded with a low of 1.4283 and with a high of 1.4434. Today, German Retail Sales are expected to rise from 0.0% to 0.4%, euro zone Retail Sales are expected to remain at 0.0% , German Factory Orders are expected at 1.6% vs. -2.1% prior.
EUR/USD – Last: 1.4408

Resistance 1.4455 1.4483
Support 1.4334 1.4283 1.4257



British Pound (GBP) –The Pound slightly rose versus the Dollar after UK December services sector rose slightly in December to 56.8 vs. 56.7 forecast. Today the eyes of the investors will be set for the interest rate decision of the BOE that is expected to leave the rate at 0.5%. There is a support level at 1.5930 if it breaks it the GPB momentum is down. Overall, GBP/USD traded with a low of 1.5938 and with a high of 1.6064.Today, Halifax HPI is expected at 0.6% vs. 1.4% prior and Asset Purchase Facility is expected to remain at 200B
GBP/USD - Last: 1.6025

Resistance 1.6064 1.6154 1.6240
Support 1.5938 1.5833



Japanese Yen (JPY) –The Dollar traded near the lowest in almost two weeks against the Yen as signs of an uneven recovery in the US weakened speculation the Federal Reserve will make an early end to its efforts to keep interest rates low. On one hour chart we see a resistance at 92.75 if it breaks this level a long position is preferred. Overall, USD/JPY traded with a low 91.52 of and with a high of 92.74.
USD/JPY-Last: 92.25

Resistance 92.74 93.20
Support 90.05 91.63 91.25



Canadian dollar (CAD) – The Canadian Dollar gained for a fifth straight day versus the Dollar, its longest winning streak since October, as gold rose and crude oil, the nation’s biggest export, touched the highest level in almost 15 months. USD/CAD is facing a resistance at 1.0425 and until the price is under this level, it is more likely to continue the downwards trend. Overall, USD/CAD traded with a low 1.0312 of and with a high of 1.0409. Today, Ivey PMI is expected at 52.2 vs. 55.9 prior.
CAD/USD - Last: 1.0329

Resistance 1.0424 1.0537 1.0578
Support 1.0296