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EUR Tumbled Versus the USD

UFXBank Research from UFX Bank at 02/08/10


Daily Review 8/2/2010

USD Dollar (USD) – The Dollar gained versus all majors except the Yen after investors continued to flee stock, commodities and other higher risk assets and turned to the safety of the Dollar. Non Farm Employment Change came out worse showing 20K more workers lost their job, but Unemployment Rate came out 9.7% better than 10% expected. NASDAQ and Dow Jones gained by 0.74% and 0.1% respectively after a volatile trading session mostly on the negative end. Crude Oil dropped by -1.71% closing at 71.19$ a barrel. Gold (XAU) remained unchanged at 1,065.6$ an ounce. No economic data expected today.

EURO (EUR) –The Euro tumbled versus the Dollar and the Yen as investors kept selling the Euro on concern budget deficits in Greece, Spain and Portugal will slow the region's economic growth. Overall, EUR/USD traded with a low of 1.3585 and a high of 1.3746. EUR/USD is getting oversold according to the RSI indicator, a correction back up is possible but the main trend is downwards. No major economic data expected today.

EUR/USD - Last: 1.3660

Resistance 1.37 1.374 1.377
Support 1.3595 1.353 1.35

British Pound (GBP) – The Pound dropped versus the Dollar reaching an eight month low after Non Farm Employment Change came out worse and raised Risk Aversion again. PPI Input came out better with 2% versus 0.7% expected. Overall, GBP/USD traded with a low of 1.5558 and a high of 1.5775. GBP/USD is getting oversold according to the RSI indicator but the trend is still downwards. RICS House Price Balance will be released at night and is expected with 29% versus 30% prior.

GBP/USD - Last: 1.5610

Resistance 1.57 1.5745 1.5775
Support 1.556 1.545 1.539

Japanese Yen (JPY) –The Yen gained versus the Dollar, Euro and the Pound as risk aversion gained following U.S unemployment data. Overall, USD/JPY traded with a low of 88.83 and a high of 89.89. USD/JPY is trading downwards but still unable to cross below the 88.50 support. No major economic data expected today.

USD/JPY-Last: 89.2

Resistance 89.75 90.1 90.55
Support 88.85 88.5 87.75

Canadian Dollar (CAD) – The Canadian Dollar remained almost unchanged versus the American Dollar after better than expected employment data was released. Canadian Unemployment Rate came out 8.3% versus 8.5% expected and 43K more workers added to the market, higher than 15.2K expected. Overall, USD/CAD traded with a low of 1.0644 and a high of 1.0780. USD/CAD has continued higher toward the 200 Daily Moving Average but wasn't able to remain above the 1.0750 resistance level. Today, Housing Starts are expected with 180K versus 175K prior.

USD/CAD - Last: 1.0645

Resistance 1.078 1.085 1.09
Support 1.0645 1.058 1.055

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