Obama Fighting Unemployment
UFXBank Research from UFX Bank at 12/09/09
Daily Review 9/12/2009
USD Dollar (USD) – The Dollar continued gaining versus most majors as investors turned to the Safe Haven of the Dollar as the global economy keeps struggling to end the recession. President Obama called for more federal spending to fight the unemployment. IBD/TIPP Economic Optimism was out weaker with 46.8 versus 49.5 expected. NASDAQ and Dow Jones dropped by -0.76% and -1.00% respectively as the Dollar strengthened. Crude weakened by -1.23% closing at 73.02$ a barrel and Gold (XAU) fell by -2.87% closing at 1130$ an ounce on a stronger Dollar. Today, Wholesale Inventories are expected with -0.6% versus -0.9% prior.
EURO (EUR) –The Euro continued falling versus the Dollar, breaking below the 1.48 support level. German Industrial Production came out weaker with -1.8% versus 1.1% expected and sent equity markets to declines. Overall, EUR/USD traded with a low of 1.4680 and with a high of 1.4867. French Non-Farm Payrolls will be released at night and are expected to remain with 0% change. ECB Monthly Report will also be released at night giving outlooks for various economic issues.
EUR/USD - Last: 1.4699
Resistance 1.4735 1.4896 1.5090
Support 1.4668
British Pound (GBP) – The Pound dropped versus the Dollar after Manufacturing Production came out short with 0% versus 0.5% expected. NIESR GDP Estimate came out 0.2% versus -0.4% prior. Overall, GBP/USD traded with a low of 1.6255 and a high of 1.6476. Today, Trade Balance is expected with -6.9B versus -7.2B prior.
GBP/USD - Last: 1.6190
Resistance 1.6311 1.6515 1.6670
Support 1.6180
Japanese Yen (JPY) –The Yen gained versus the Dollar and the Euro as risk appetite continued to wane and investors seek the safety of the Yen. Final GDP came out weaker with 0.3% versus 0.8% expected. Overall, USD/JPY traded with a low of 88.16 and a high of 89.51 and EUR/JPY traded with a low of 129.64 and a high of 132.71. Today, Core Machinery Orders are expected with -4.4% versus 10.5% prior.
USD/JPY-Last: 88.00
Resistance 89.17 90.10 90.77
Support 88 87.65 87
Canadian Dollar (CAD) – The Canadian Dollar weakened versus the Dollar as Bank of Canada left the Interest Rate unchanged at 0.25% and Commodity prices continued to weaken lowering the high yielding currency's appeal. Housing Starts came out 159K as expected. Overall, USD/CAD traded with a low of 1.0485 and a high of 1.0670. No economic data expected today.
USD/CAD - Last: 1.0647
Resistance 1.0670
Support 1.0611 1.0595 1.0487
