News From Dubai Rocks Most Majors

UFXBank Research from UFX Bank at 11/30/09

 

Daily Review 30/11/2009

USD Dollar (USD) – The Dollar lowered versus most majors on Friday as Dubai debt concerns were reduced due to UAE's pledge to back foreign and domestic banks in Dubai. NASDAQ and Dow Jones dropped by -1.73% and -1.48% after being closed on Thursday due to Thanksgiving. Crude fell by -2.45% closing at 76.05$ a barrel and Gold (XAU) fell for the first time in 9 days with -1.08% change closing at 1174.2$ an ounce. Today, Chicago PMI is expected weaker with 53.1 versus 54.2 prior.

EURO (EUR) –The Euro gained slightly versus the Dollar on Friday's session as liquidity was lower and stocks declined as a result of Dubai's financial crisis. The Euro paired its losses as rumors of the UAE backing Dubai's bank leaked to the market. EUR/USD traded with a low of 1.4828 and with a high of 1.50. Today, CPI Flash Estimate is expected with 0.5% versus -0.1% prior.

EUR/USD - Last: 1.5025

Resistance 1.5055 1.51
Support 1.4950 1.487 1.4825



British Pound (GBP) – The Pound gained versus the Dollar after UAE's pledge to back Dubai raised risk appetite again lifting the Pound from its monthly lows. Overall, GBP/USD traded with a low of 1.6271 and a high of 1.6510. Today, Net Lending to Individuals is expected with 0.8B versus 0.6B prior, stronger result will lead to less need to expend Britain's QE program. Mortgage Approvals are expected stronger with 59K versus 56K prior.

GBP/USD - Last: 1.6540

Resistance 1.659 1.665
Support 1.645 1.6375 1.6325



Japanese Yen (JPY) –The Yen weakened versus the Dollar as uncertainty about the Dubai crisis lowered following UAE's announcement. Investors shifted back from the safety of the Yen to higher yielding currencies. Overall, USD/JPY traded with a low of 85.08 and a high of 87.01 and EUR/JPY traded with a low of 127.38 and a high of 130.14. No economic data expected today.


USD/JPY-Last: 86.80

Resistance 87.05 87.5 88
Support 86.3 85.75 85.25



Canadian dollar (CAD) – The Canadian Dollar remained unchanged versus the Dollar as commodities prices dropped but Dubai's financial crisis uncertainty lowered. Current Account came out weaker than expected with -13.1B versus -12.9B forecast and -11.9B prior. Overall, USD/CAD traded with a low of 1.0585 and a high of 1.0748. Today, GDP is expected stronger with 0.4% versus -0.1% prior. RMPI is expected stronger with 3.1% versus -1.1% prior.


CAD/USD - Last: 1.0585

Resistance 1.0650 1.07 1.075
Support 1.0570 1.0540 1.0505