USD Closes the Day on Mixed Note
UFXBank Research from UFX Bank at 11/12/09
Daily Review 12/11/2009
USD Dollar (USD) – Dollar closed the day on a mixed note after a low liquidity trading session amid U.S. bank holiday. U.S. stocks future print modest gains reaching fresh year highs, suggesting dollar bearish rally is not over. The NASDAQ rose by 0.7% and the S&P 500 gained 0.5%, The Dow Jones appreciated 0.43% closing at 10,291. Gold (XAU) reached a fresh historical high at 1118.60$ an ounce to close the day. Crude Oil also rose closing above 79$ a barrel. Today, The Initial Jobless Claims expected unchanged at 512K. The Federal Budget Balance is expected at -150B vs. -46.6B previously.
EURO (EUR) – The EUR/USD has done little in the last few days, it attempted to break yearly high, yet failed at the 1.5050 level, triggering some modest profit taking among investors. It was a French Bank Holiday in Europe. Overall, EUR/USD traded with a low of 1.4952 and with a high of 1.5047. Today, The ECB Monthly Report will come out and might show that Europe’s economy expanded last quarter, damping demand for the U.S. currency as a refuge. Later ECB president, Jean-Claude Trichet will speak. The Industrial Production expected at 0.6% vs. 0.9% previously.
EUR/USD - Last: 1.4994
Resistance 1.5025 1.5065 1.5125
Support 1.491 1.4875 1.4815
British Pound (GBP) – The Pound declined by the most in almost three weeks against the dollar after Bank of England Governor Mervyn King said a weaker currency should lead to a recovery in the economy. Sterling fell under the 1.6600 level, after U.K. inflation statement, that present the idea that the BOE is likely to keep policy steady for an extended period amid what is likely to be a slow economic recovery. GBP/USD traded with a low of 1.6534 and with a high of 1.6797. Today, No economic data expected.
GBP/USD - Last: 1.66
Resistance 1.6625 1.667 1.6725
Support 1.65 1.6465 1.6405
Japanese Yen (JPY) – The Japanese currency traded without clear direction against the dollar and closed almost unchanged. The currency needs to break through the 90.35 level in order to stay bullish but so far it can't hold above 90 levels. The Yen strengthened against the sterling after the inflation report came out. Overall, USD/JPY traded with a low of 89.28 and with a high of 90.03. Today, The Industrial Production expected unchanged at 1.4%
USD/JPY-Last: 89.82
Resistance 90.2 90.4 90.6
Support 89.7 89.48 89.3
Canadian dollar (CAD) – Canada’s Dollar rose to the strongest level against its U.S. counterpart since Oct. 22, after reports in China showed the economy is advancing, spurring stock and commodity gains. Overall, USD/CAD traded with a low of 1.0430 and with a high of 1.0502. Today, The New Housing Price Index (NHPI) expected at 0.2% vs. 0.1% previously.
USD/CAD - Last: 1.0433
Resistance 1.05 1.0545 1.06
Support 1.0435 1.0405 1.0375
