The Dollar gained against all majors

UFXBank Research from UFX Bank at 02/18/10

 

Daily Review 18/02/2010

USD Dollar (USD) – The Dollar gained against all majors as higher estimated earnings and economic data signaled the global recovery is gaining momentum and Several Federal Reserve policymakers said they want to begin selling securities relatively soon as a way to cut back their massive supply of cash to the financial system . NASDAQ and Dow Jones increased by 0.55% and 0.39% respectively, crude oil rose by 0.45% closed at 75.4$ a barrel, Gold(XAU) decreased by 0.4% closed at 1115.5$ an ounce. Today, PPI is expected to rise from 0.4% to 0.8%, Unemployment Claims is expected to be like the previous at 440K, Philly Fed Manufacturing Index is expected at 17.2 vs. 15.2 prior.

EURO (EUR) – The Euro slid from the highest level this week versus the Dollar after a statement from Germany that said that not a single Euro should go to Greece. On the daily graph we can see a clearly downward trend therefore a short position is preferred, the main resistance is 1.3810. Overall, EUR/USD traded with a low of 1.3585 and with a high of 1.3788. No economic data expected today.
EUR/USD – Last: 1.3575

Resistance 1.3640 1.3695 1.3790
Support 1.3530


British Pound (GBP) –The Pound dropped against the Dollar after UK jobless claims unexpectedly jumped in January to the highest level since April 1997, came out at 23.5K vs. -14.6K forecast vs. -9.6K prior. In addition, the Bank of England policy makers unanimously agreed to pause their 200 billion-pound bond-purchase plan this month on optimism that inflation will return to their 2 percent target. The GBP/USD is under the 50 and the 20 moving average therefore a short position is preferred. Overall, GBP/USD traded with a low of 1.5665 and with a high of 1.5815.Today, Public Sector Net Borrowing is expected at -2.4B vs. 15.7B prior, CBI Industrial Order Expectations are expected at -35 vs. -39.
GBP/USD - Last: 1.5663

Resistance 1.5730 1.5805
Support 1.5627 1.5580 1.5560


Japanese Yen (JPY) –The Dollar rose to its highest level in almost a month against the Yen after housing and production reports beat forecasts and Federal Reserve minutes showed officials debated shrinking the central bank’s balance sheet. The main resistance is at 91.40 if it goes up from this level a long position is preferred. Overall, USD/JPY traded with a low of 90.13 and with a high of 91.38.No economic data expected today.
USD/JPY-Last: 90.97

Resistance 91.40
Support 90.65 90.10 89.55


Canadian dollar (CAD) – The Canadian Dollar weakened from almost the strongest level in February versus the Dollar as confidence in an economic recovery and rising U.S. stocks failed to translate into demand for currencies tied to growth. The USD/CAD has not broken its support at 1.0400 levels if it breaks it the pair continues to go down. Overall, USD/CAD traded with a low of 1.0412 and with a high of 1.0471. Today, Core CPI is expected at 0.1% vs. -0.3% prior, Foreign Securities Purchases is expected at 7.21B vs. 10.54B prior.

CAD/USD - Last: 1.0473

Resistance 1.0488 1.0532 1.0610
Support 1.0410