Daily Review 05/11/2009

USD Dollar (USD)

The Dollar fell across the board on the FED decision to leave interest rates at their historic lows of 0.25%. Stocks ended mostly up in the U.S. but far from their daily highs. The ADP National Employment Report came out -203K worse than -190K expected. The Dow Jones rose by 0.31%, The Nasdaq closed almost unchanged with -0.09% decrease and the S&P added 0.1%. Gold (XAU) continued to rise and posted new record highs at $1,097. Crude oil rose for the 4th day in a row and is back above $80 a barrel. Today, The Nonfarm Productivity is expected at 5.8% versus 6.6% previously. The Unit Labor Cost is expected -3.7% vs. -5.9% previously. The Initial Jobless Claims is expected 520K vs. 530K previously.

EURO (EUR)

The EUR/USD continued on its uptrend for the week and soared against the Dollar. Producer Price Index came out -0.4% worse than -0.3% expected. EUR/USD traded with a low of 1.4701 and with a high of 1.4907. Today, The European Central Bank will release their interest rate decision, expected unchanged at 1%.

EUR/USD – Last: 1.4838

Resistance	1.4925	1.498	1.5045
Support	1.48	1.476	1.47

British Pound (GBP)

The Pound posted sharp gains against the Dollar and extended its 2 day rally after the Fed\’s rate decision. The Services PMI came out 56.9 better than 55.4 expected. Overall, GBP/USD traded with a low of 1.64 and a high of 1.6595. Today, The Bank of England will release its\’ decision on the interest rate, the economists expect it unchanged at 0.5%. The Manufacturing Production is expected at 1.1% vs. -1.9% previously. The Industrial Production is expected at 1.1% vs. -2.5% previously.

GBP/USD – Last: 1.6515

Resistance	1.6605	1.664	1.6695
Support	1.6495	1.6455	1.642

Japanese Yen (JPY)

The Yen tumbled across the board. BOJ said on its minutes it is not planning to raise interest rates soon even after ending the emergency programs. Overall, USD/JPY traded with a low of 90.03 and a high of 91.30. Today, Leading Indicators are expected higher with 86.4% versus 83.2%.

USD/JPY-Last: 90.55

Resistance	91	91.3	91.55
Support	90.4	90.25	90.05

Canadian dollar (CAD)

The Canadian Dollar ended higher as commodity prices kept advancing and higher yielding assets demand remained high after U.S interest rate decision was released. Overall, USD/CAD traded with a low of 1.0587 and with a high of 1.0683. Today, Building Permits are expected at 1.2% vs. 7.2% previously. Ivery PMI is expected at 60.9 vs. 61.7 previously.

CAD/USD – Last: 1.0645