Existing Home Sales Clumb to a 2 Year High
UFXBank Research from UFX Bank at 10/26/09
Daily Review 26/10/2009
USD Dollar (USD) – The Dollar strengthened versus all the majors after Existing Home Sales climbed to a 2 years high as homebuyers rushed to take advantage of a tax credit before it runs out. Purchases jumped by 9.4% to 5.57M more than the 5.37M forecast 5.09M prior. NASDAQ and Dow Jones decreased by -0.5% and -1.08% respectively, Crude oil weakened by 0.8% closing at 81.20$ a barrel, Gold (XAU) declined BY -0.2% closing at 1056.4$ an ounce. No economic data expected today.
EURO (EUR) –The Euro weakened on Friday against the Dollar but still remained high as more evidence of a recovery in the global economy increases demand for higher-yielding assets. Industrial New Orders came out better than expected at 2.0% vs. 1.2% forecast. German Ifo Business Climate came out a bit lower than the forecast at 91.9 vs. 92.1. Overall, EUR/USD traded with a low of 1.4984 and with a high of 1.5059. Today, GfK German Consumer Climate is expected at 4.5 vs. 4.3 prior.
EUR/USD - Last: 1.5029
Support 1.4981 1.4944 1.4882
British Pound (GBP) – The Pound fell strongly against the Dollar and Euro after GDP results. GDP came out -0.4% versus 0.2% expected and -0.3% prior, showing more contraction in Britain's economy in the 3rd Quarter as Britain is still in deep recession. Overall, GBP/USD traded with a low of 1.6299 and with a high of 1.6693. Today, MPC Member Posen Speaks.
GBP/USD - Last: 1.6268
Resistance 1.6369 1.6489 1.6636
Japanese Yen (JPY) –The Yen continued to weaken versus the Dollar reaching its lowest rate in October due to stronger Dollar against all other majors on Friday. Overall, USD/JPY traded with a low of 91.27 and with a high of 92.12. No economic data expected today.
Support 91.48 91.24 90.77
Canadian dollar (CAD) – The Canadian Dollar dropped the most in a month over the past 5 days versus the Dollar after comments from BOC's governor prompted investors to unwind bets policy makers would raise interest rates before the second half of 2010. Overall, USD/CAD traded with a low of 1.0447 and with a high of 1.0543. Today, BOC Gov Carney Speaks.
CAD/USD - Last: 1.0534
Resistance 1.0544 1.0582
Support 1.0449 1.0416 1.0378