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USD Continued Upward Trend

UFXBank Research from UFX Bank at 01/10/10


Daily Review 08/01/2010

USD Dollar (USD) – The Dollar continued the upward trend and strengthened versus all majors. Helping the Dollar’s rally was the initial jobless claims data that increased to 434,000, fewer than the 439,000 claims economists anticipated. Wall Street closed on a mix note. NASDAQ declined by 0.05% and Dow Jones rose by 0.31%. Crude oil declined for the first time in 11 days as the dollar advanced, dropping by 0.6%, closed at 82.66$ a barrel. Gold (XAU) also weakened by 0.2% closed at 1133.7$ an ounce. Today, the investors will wait for the Non-Farm Employment Change (Payrolls) which is expected to decline from -11K to -3K and Unemployment Rate is expected at 10.1% vs. 10.0% prior.
EURO (EUR) – The Euro fell against the Dollar after Germany retail sales in real terms dropped by 1.1% in November and the Euro zone retail sales drop by 1.2% in November, which supported the trend. The German factory orders also came out worse than expected at 0.2% vs. 1.6% forecast. On one hour chart we see that the Euro continue to trample versus the Dollar. The main resistance and support are 1.4485 and 1.4255. Overall, EUR/USD traded with a low of 1.4299 and with a high of 1.4446. Today, Unemployment Rate is expected to rise from 9.8% to 9.9% and German Industrial Production is expected at 1.1% vs. -1.8% prior.
EUR/USD – Last: 1.4311

Resistance 1.4450 1.4485
Support 1.4282 1.4255

British Pound (GBP) –The Pound joined the trend and weakened against the Dollar. Helping the British currency weakness was the Bank of England that left its benchmark interest rate at 0.5% and said they will continue asset-purchase plan at 200B. The momentum of the GBP is still downward until it breaks the 1.6080 level. Overall, GBP/USD traded with a low of 1.5896 and with a high of 1.6059. Today, PPI Input is expected to drop from 0.1% to -0.2%.
GBP/USD - Last: 1.5945

Resistance 1.6065 1.6152 1.6235
Support 1.5895

Japanese Yen (JPY) –The Yen fell against the Dollar and the Euro after Japanese Finance Minister said on his first day in office that he would welcome a weaker currency. As long the level is above 93.00, a long position is preferred. Overall, USD/JPY traded with a low of 92.10 and with a high of 93.77.
USD/JPY-Last: 93.19

Resistance 93.77
Support 93.10 92.10 91.25

Canadian dollar (CAD) – The Canadian Dollar declined from the strongest level in more than 2 month versus the Dollar as crude oil decreased and Ivey PMI released worse than expected at 48.4 vs. 52.2. The main resistance is 1.0430 as long as the price is below a short positions is preferred. Overall, USD/CAD traded with a low of 1.0292 and with a high of 1.0373. Today, Employment Change is expected at 20.2 vs. 79.1 prior and Unemployment Rate is expected to remain at 8.5%.
CAD/USD - Last: 1.0346

Resistance 1.0408 1.0424 1.0540
Support 1.0290

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