Greece on Track for Economic Recovery
UFXBank Research from UFX Bank at 01/14/10
Daily Review 14/01/2010
USD Dollar (USD) – The Dollar weakened against 12 of the 16 most traded currencies after the Federal Reserve said that a modest economic recovery is broadening. NASDAQ and Dow Jones rose by 1.12% and 0.50% respectively. Crude oil fell for a 3rd day after U.S. inventories report showed an increase of 3.7M barrels as demand dropped. Crude prices decreased by -1.4% closing at 79.65$ a barrel. Gold (XAU) rose by 0.7% closing at 1136.8$ an ounce. Today, Retail Sales are expected with 0.4% vs. 1.3% prior, Unemployment Claims are expected to increase from 434K to 438K,
EURO (EUR) – The Euro strengthened against the Dollar and the Yen after Greek Finance Minister George Papaconstantinou said the nation is on the right track to solve its problems and does not need bailing out. EUR/USD has been struggling with the 1.45 level but as long as it remains above 1.4480 it is still bullish. Overall, EUR/USD traded with a low of 1.4456 and a high of 1.4579.Today, the ECB will release its' interest rate decision which is expected to remain at 1.0%, ECB Press Conference will follow the decision.
EUR/USD – Last: 1.4540
Resistance 1.4557 1.4580
Support 1.4455 1.44 1.4275
British Pound (GBP) –The Pound rose for a 4th day against the Dollar, its longest run since November, after Bank of England policy maker Andrew Sentance was cited as saying interest rates may have to increase this year. Manufacturing Production came out worse than expected at 0.0% vs. 0.3% forecast. GBP/USD has breached above 1.6240 therefore the momentum is upward. The pair is currently near another resistance level at 1.63. Overall, GBP/USD traded with a low of 1.6135 and a high of 1.6306. No economic data expected today.
GBP/USD - Last: 1.6298
Resistance 1.6310
Support 1.6260 1.6135 1.6060
Japanese Yen (JPY) –The Yen fell against all of its major counterparts as a rebound in stocks prompted speculation traders will sell the currency to fund investments in higher yielding assets. Better than expected employment data from Australia and gains in Asian stocks led the Yen lower as risk appetite increases. The main support we see on 1 hour chart is 90.70 if the pair will break below this level it's a clear downtrend .The short term momentum is upwards but many resistance levels prevent the pair from big movements. Overall, USD/JPY traded with a low of 90.90 and with a high of 91.56. No economic data expected today.
USD/JPY-Last: 91.70
Resistance 91.90 92.25
Support 91.50 91.15 90.70
Canadian dollar (CAD) – The Canadian Dollar gained for the first time in 3 days as investors’ appetite for higher-yielding currencies rose following rises in stocks and better than expected employment data from Australia. The USD/CAD is on a clear downtrend which is consistent with the RSI. As long as USD/CAD remains below 1.0420 a short position is preferred but traders should watch oversold conditions that starting to appear. Overall, USD/CAD traded with a low of 1.0289 and with a high of 1.0411. No economic data expected today.
CAD/USD - Last: 1.0298
Resistance 1.0360 1.0395 1.0415
Support 1.0290 1.0250
