The Dollar posted small gains against most of the majors after Retail Sales data came out better than expected
UFXBank Research from UFX Bank at 02/15/10
Daily Review 15/02/2010
USD Dollar (USD) – The Dollar posted small gains against most of the majors after Retail Sales data came out 0.5% better than expected 0.4% but eased part of the gains after The Michigan Consumer Sentiment Index came out 73.7 worse than expected 74.8. Walls Street closed mixed with NASDAQ advancing 0.28% and the Dow Jones lost -0.44%. Crude oil fell and closed at 74.2$ a barrel, Gold (XAU) almost unchanged closed at 1092.8$ an ounce. Today, US banks will be closed in observance of President's Day.
EURO (EUR) – The Euro fell against the Dollar, extending the decline. The pair posted a new 8-month low at 1.3528, but then managed to rise and hold above 1.3600. The Euro is still under pressure across the board as fiscal problems continue to weight in Europe. The German GDP came out 0% worse than expected 0.1%. Holding the Euro below the 1.3840 level probably continue the downtrend. Overall, EUR/USD traded with a low of 1.3530 and with a high of 1.3694. Today, The Italian Trade Balance index is expected at -0.75B vs. -0.79B previously.
EUR/USD – Last: 1.3613
Resistance 1.3675 1.3735 1.38
Support 1.355 1.35 1.345
British Pound (GBP) – The GBP closed almost unchanged after losing a ground and trying to break below the lows. If the GBP will sustain the support level of 1.5520 a rebound back to 1.58 levels could be seen. Overall, GBP/USD traded with a low of 1.5578 and with a high of 1.5738. No important economic data expected today.
GBP/USD - Last: 1.5677
Resistance 1.5725 1.5765 1.58
Support 1.5565 1.5495 1.542
Japanese Yen (JPY) – The Dollar gained against the Japanese currency and back to trade near the 90 area. The GDP came out 1.1% better than expected 1%. Break under 89.80 support should send the pair to test next support level around 89.50 strong area otherwise an upside continuation could be seen till the 91.8 zone. Overall, USD/JPY traded with a low of 89.57 and with a high of 90.40. No important economic data expected today.
USD/JPY-Last: 90.15
Resistance 90.35 90.75 91.25
Support 89.55 89.15 88.80
Canadian dollar (CAD) – The Canadian Dollar closed almost unchanged after it weakened against the Dollar as China raised reserve requirements, discouraging demand for currencies related to economic growth. Breaking below 1.0480 levels might extend gains in the Canadian Dollar. Overall, USD/CAD traded with a low of 1.0487 and with a high of 1.0577. No important data expected today.
USD/CAD - Last: 1.0512
Resistance 1.0545 1.0575 1.061
Support 1.0475 1.045 1.04
