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Gold Pops to All−Time High

UFXBank Research from UFX Bank at 11/04/09


Daily Review 4/11/2009

USD Dollar (USD) – The Dollar was mixed gaining versus the Euro and weakening slightly versus the Pound ahead of today's Interest Rate Decision. Factory Orders rose by only 0.9% versus 1.1% expected. NASDAQ gained by 0.4% and Dow Jones weakened by -0.18% as investors bought energy and industrial stocks due to rising commodity prices. Crude gained by 1.75% closing at 79.50$ a barrel and Gold (XAU) popped by 2.93% closing at an all time high of 1084.3$ an ounce after International Monetary Fund announced it sold 200 metric tons of Gold to India's central bank. Today, the FOMC will announce its Interest Rate Decision, expected to remain 0.25%. Before the Rate Statement ADP Non Farm Employment Change is expected with -188K versus -254K prior, a lower number will show worse employment data. ISM Non Manufacturing PMI is expected better with 51.6 versus 50.9 prior.

EURO (EUR) –The Euro weakened versus the Dollar as economists predict the ECB won't raise rates before the Fed in order not to create further appreciation in the Euro which damages exports. EUR/USD traded with a low of 1.4625 and with a high of 1.4810. Today, European PPI is expected worse with -0.3% versus 0.4% prior and Final Services PMI is expected unchanged with 52.3.

EUR/USD - Last: 1.4710

Resistance 1.4775 1.4812 1.486
Support 1.467 1.4625 1.4595

British Pound (GBP) – The Pound gained slightly versus the Dollar after reaching a 7 day low earlier. Construction PMI came out worse with 46.2 versus 47.2 expected and Hailfax HPI came out better with 1.2% versus 0.8% expected. The Pound continues to be very volatile as concerns about Britain's bailout plan and the conditions in the financial sector continue to worry investors. Overall, GBP/USD traded with a low of 1.6261 and a high of 1.6454. Today, Services PMI is expected to grow slightly from 55.3 to 55.4.
GBP/USD - Last: 1.6415

Resistance 1.6485 1.6525 1.6605
Support 1.635 1.628 1.625

Japanese Yen (JPY) –The Yen weakened versus the Dollar and gained versus the Euro. Japanese Monetary Base was weaker with 4.4% versus 4.5% prior. Overall, USD/JPY traded with a low of 89.87 and a high of 90.57 and EUR/JPY traded with a low of 131.72 and a high of 133.98. Today, BOJ's President Shirakawa will speak and might give clues regarding future monetary policy. Monetary Policy Meeting Minutes will be released later and will give insight about the last Interest Rate Decision.

USD/JPY-Last: 90.15

Resistance 90.85 91.2 91.55
Support 90.1 89.85 89.65

Canadian dollar (CAD) – The Canadian Dollar gained versus the Dollar as commodities kept advancing and energy stocks gained. Overall, USD/CAD traded with a low of 1.0654 and with a high of 1.0852. BOC Deputy Governor John Murray will speak at the Chamber of Commerce today.

CAD/USD - Last: 1.0675

Resistance 1.0765 1.085 1.093
Support 1.063 1.0585 1.0545

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