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Pound continues to Gain versus Dollar and Euro

UFXBank Research from UFX Bank at 10/22/09


Daily Review 22/10/2009

USD Dollar (USD) – The Dollar weakened against most majors after the FED said the district banks show stability and some improvements. MBA Mortgage claims which came out surprisingly much lower than predicted also put pressure on the Dollar. Wall Street closed down following estimates that Wall Mart will need to raise 200 billion Dollars. NASDAQ and Dow Jones decrease by 0.59% and 0.89% respectively. Crude oil jumped by 2.8%, reaching a yearly record high, closing at 81.37$ a barrel after a smaller than expected increase in oil inventories. Gold (XAU) gained 5.9$ versus the Dollar, closing at 1064$ an ounce. Today, Unemployment Claims are expected to slightly rise from 514K to 516K, FOMC Member Evans Speaks.
EURO (EUR) –The Euro rose versus the Dollar reaching to a new record since November 2008 as the global economic recovery increased demand for riskier assets at the expense of the Dollar. EUR/USD traded with a low of 1.4888 and with a high of 1.5045. Today, Current Account is expected at 1.9B vs. 6.6B previously, Belgium NBB Business Climate is expected to decline from -17.8 to -15.6.
EUR/USD - Last: 1.4995

Resistance 1.4993 1.5035 1.5046
Support 1.4882 1.4849 1.4823

British Pound (GBP) – The Pound continue to gain versus the Dollar and Euro after Bank of England policy makers maintained consensus on the size of their bond-purchase plan this month. Overall, GBP/USD traded with a low of 1.6346 and with a high of 1.6635. Today, Retail Sales is expected higher at 0.6% vs. 0.0% prior.
GBP/USD - Last: 1.6600

Resistance 1.6636
Support 1.6575 1.6328 1.6240

Japanese Yen (JPY) –The Yen weakened versus the Dollar trading with a low of 90.48 and with a high of 91.27. Bank of Japan Deputy Governor Nishimura said financial markets are improving and keeping the central bank’s emergency credit programs in place for too long may cause distortions. Trade balance came out worse than expected at 0.06T vs. 0.38T forecast. No economic data expected today.
USD/JPY-Last: 91.18

Resistance 91.27
Support 90.77 90.48 90.08

Canadian dollar (CAD) – The Canadian Dollar climbed on gains in crude oil, the nation’s biggest export, as investors sought higher-yielding assets that historically benefit when global demand rebounds. Overall, USD/CAD traded with a low of 1.0378 and with a high of 1.0583. Today, Core Retail Sales are expected at 0.5% vs. -0.8% prior, BOC Monetary Policy Report,
CAD/USD - Last: 1.0467

Resistance 1.0515 1.0582
Support 1.0378 1.0266

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