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New Home Sales in US Fall and USD Weakens

UFXBank Research from UFX Bank at 12/24/09


Daily Review 24/12/2009

USD Dollar (USD) – The Dollar weakened against most majors after New Home Sales in the US unexpectedly fell last month, coming at 355K vs. 439K expected, indicating the recovery will be slower than first anticipated. NASDAQ rose by 0.75% and Dow Jones closed unchanged. Crude oil jumped by 3.1% after oil inventories showed a drop and came out at -4.9M vs. -1.5M forecast. Oil closed at 76.6$ a barrel. Gold (XAU) increased by 0.7% closed at 1093.3$ an ounce. Today, Core Durable Goods Orders are expected at 1.1% vs. -1.3% prior, Unemployment Claims is expected at 471K vs. 480K prior.
EURO (EUR) –The Euro managed to regain back strength climbing back from new lows as a report showed sales of new homes unexpectedly fell last month, raising concern that the US recovery may take longer. Overall, EUR/USD traded with low of 1.4232 and with a high of 1.4365. No economic data expected today.
EUR/USD - Last: 1.4337

Resistance 1.4366 1.4420
Support 1.4320 1.4265 1.4235

British Pound (GBP) –The Pound closed almost unchanged versus the Dollar after dropping for the last 3 after Bank of England released its notes from its recent meeting and showed policy makers agreed to continue with the plan to buy as much as 200 billion pounds in bonds to revive the economy. Overall, GBP/USD traded with low of 1.5922 and with a high of 1.5999. No economic data expected today.
GBP/USD - Last: 1.5982

Resistance 1.0638 1.61 1.6165
Support 1.5920

Japanese Yen (JPY) – The Yen strengthened against the Dollar after officials in BOJ said they will act against volatility in the market. Overall, USD/JPY traded with low of 91.29 and with a high of 91.85.
USD/JPY-Last: 91.45

Resistance 91.85
Support 91.30 91.00 90.15

Canadian dollar (CAD) – Following the rise in price of oil, the nation biggest export, the Canadian Dollar rose to the highest level in almost three weeks, despite that fact that GDP came out worse than expected at 0.2% vs. 0.3% forecast. Overall, USD/CAD traded with low of 1.0469 and with a high of 1.0576.

CAD/USD - Last: 1.0490

Resistance 1.0530 1.0588 1.0633
Support 1.0470

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