daily forex review
Daily Review 16/12/2009
USD Dollar (USD)
The Dollar gained versus 15 of the 16 majors as Industrial Production rose by 0.8% versus 0.6% expected signaling U.S economy is expanding. The FOMC is still expected to keep the Interest Rate today at 0.25% but more economists expect a rate increase to 0.5% until June 2010. PPI came out stronger with 1.8% versus 0.8% expected and TIC Long Term Purchases came out weaker with 20.7B versus 38.3B prior. NASDAQ and Dow Jones declined by -0.50% and -0.47% respectively as wholesale inflation raised concerns the Fed will be forced to raise interest rates. Crude gained by 0.17% closing at 70.81$ a barrel ending a 9 day declining streak. Gold (XAU) gained by 0.29% closing at 1125.70$ an ounce. Today, Building Permits are expected with 0.58M versus 0.55M prior. CPI is expected with 0.4% versus 0.3% prior and Core CPI is expected with 0.1% versus 0.2% prior. Investors are waiting for the FOMC Interest Rate decision that is expected to remain at 0.25%.
EURO (EUR)
The Euro fell versus the Dollar and the Pound after weaker French CPI results, which triggered the Euro\’s decline. German ZEW Economic Sentiment came out 50.4 slightly better than 50.1 expected but ZEW Economic Sentiment came out weaker with 48 versus 50.9 expected. More countries in the Euro zone show signs the recession is still alive. Greece is struggling with its debt and Austria nationalized Hypo Bank. Overall, EUR/USD traded with a low of 1.4503 and a high of 1.4659. Today, German and French Manufacturing PMI are expected slightly stronger. CPI and Core CPI are expected unchanged with 0.6% and 1.2% accordingly.
EUR/USD – Last: 1.4535
|
Resistance |
1.4575 |
1.4625 |
1.4685 |
|
Support |
1.4500 |
1.4445 |
1.4410 |
British Pound (GBP)
The Pound weakened versus the Dollar but gained versus the Euro after CPI came out 1.9% versus 1.8% expected. The CPI figures show inflation is advancing and the U.K won\’t be able to keep interest rates at their record lows. Overall, GBP/USD traded with a low of 1.6205 and a high of 1.6319. Today, Claimant Count Change is expected with 13.9K versus 12.9K and MPC Member Miles will speak in London.
GBP/USD – Last: 1.6275
|
Resistance |
1.6315 |
1.6350 |
1.6380 |
|
Support |
1.6210 |
1.6160 |
1.6105 |
Japanese Yen (JPY)
The Yen dropped versus the Dollar and the Euro as a near US interest rate increase seems likely in the upcoming year. Overall, USD/JPY traded with a low of 88.61 and a high of 89.95 and EUR/JPY traded with a low of 129.54 and a high of 130.73. No economic data expected today in Japan.
USD/JPY-Last: 89.65
|
Resistance |
89.95 |
90.40 |
90.75 |
|
Support |
89.30 |
88.75 |
88.35 |
Canadian Dollar (CAD)
The Canadian Dollar followed the trend and fell against the Dollar but gained versus most other majors as Crude prices rose slightly ending its 9 day decline. Leading Index came out better with 1.3% versus 0.6% and Labor Productivity came out weaker with -0.2% versus -0.4% expected. Overall, USD/CAD traded with a low of 1.0552 and a high of 1.0611. Today, Manufacturing Sales is expected with 1% versus 1.4% prior.
USD/CAD – Last: 1.0615
|
Resistance |
1.0670 |
1.0700 |
1.0750 |
|
Support |
1.0580 |
1.0550 |
1.0515 |
Research by http://www.ufxbank.com
Daily Review 14/12/2009
USD Dollar (USD)
The Dollar continued rallying versus most majors on Friday after Retail Sales and Michigan\’s Consumer Sentiment came out stronger than expected signaling economy is recovering improving Fed Rate Outlook. NASDAQ ended almost flat with -0.03% change and Dow Jones gained by 0.63%. Crude weakened by -1.39% dropping below 70$ for the first time since October closing at 69.87$ a barrel and Gold (XAU) dropped by -0.91% closing at 1114.55$ an ounce on a stronger Dollar. No economic data expected today.
EURO (EUR)
The Euro continued falling versus the Dollar reaching a 2 month low below the 1.46 support level as better economic data in the US led investors to expect a near rate increase. Ireland and Greece are facing major debt concerns that may lead to their exit from the Euro-Zone. Overall, EUR/USD traded with a low of 1.4586 and with a high of 1.4776. Today, Industrial Production is expected with -0.6% versus 0.3% prior.
EUR/USD – Last: 1.4620
|
Resistance |
1.4700 |
1.4775 |
1.4825 |
|
Support |
1.4585 |
1.4535 |
1.4470 |
British Pound (GBP)
The Pound dropped slightly versus the Dollar after PPI Input and Output came out weaker than the forecast. The UK budget deficit keeps growing as the government keeps spending money to spur the economy preventing the Pound from gaining back. Overall, GBP/USD traded with a low of 1.6196 and a high of 1.6338. Today, RICS House Price Balance is expected with 39% versus 34% prior.
GBP/USD – Last: 1.6200
|
Resistance |
1.6275 |
1.6340 |
1.6380 |
|
Support |
1.6160 |
1.6120 |
|
Japanese Yen (JPY)
The Yen weakened versus the Dollar and the Euro as economic conditions improve and a future rate increase in the U.S seems more likely. Overall, USD/JPY traded with a low of 88.26 and a high of 89.81 and EUR/JPY traded with a low of 129.97 and a high of 131.59. No economic data expected today.
USD/JPY-Last: 88.40
|
Resistance |
89.30 |
89.85 |
90.10 |
|
Support |
88.25 |
88.00 |
87.75 |
Canadian Dollar (CAD)
The Canadian Dollar weakened versus the Dollar as Crude dropped beneath 70$ a barrel on stronger Dollar sending the high yield commodity related Australian and Canadian Dollar lower. Overall, USD/CAD traded with a low of 1.0484 and a high of 1.0623. No major economic data expected today.
USD/CAD – Last: 1.0610
|
Resistance |
1.0630 |
1.0650 |
1.0690 |
|
Support |
1.0540 |
1.0500 |
1.0480 |
Daily Review 11/12/2009
USD Dollar (USD)
The Dollar traded with a narrow range versus most majors as mixed data was released in the US. The initial Jobless claims rose by 17K coming at 474K but the trade balance deficit in the U.S. unexpectedly narrowed in October to -32.9B as rebounding economies overseas and a weaker dollar pushed exports up for a sixth consecutive month. NASDAQ and Dow Jones rose by 0.33% and 0.67% respectively, following the trade balance. Crude oil decreased by 0.2% closing at 70.54$ a barrel. The oil traded the first time this month below 70$. Gold (XAU) rose by 0.5% closing at 1125.7$ an ounce. Today, Retail Sales is expected at 0.6% vs. 1.4% previously and Michigan Consumer Sentiment is expected at 69.1 vs. 67.4.
EURO (EUR)
The Euro rose slightly versus the Dollar after European Central Bank President Jean- Claude Trichet said he will withdraw stimulus measures in a faster pace than economists anticipated, clearing the way for higher interest rate next year. Overall, EUR/USD traded with a low of 1.4682 and with a high of 1.4760. Today, ECB President Trichet Speaks.
EUR/USD – Last: 1.4725
|
Resistance |
1.4760 |
1.4866 |
1.4900 |
|
Support |
1.4675 |
|
|
British Pound (GBP)
The Pound stayed almost unchanged versus the Dollar and the Euro after The Bank of England stuck to its plan to buy as much as 200 billion pounds in bonds and held the interest rate at a record low of 0.5%. Overall, GBP/USD traded with a low of 1.6213 and with a high of 1.6346. Today, PPI Input is expected at 0.6% vs. 2.6% prior.
GBP/USD – Last: 1.6312
|
Resistance |
1.6346 |
1.6472 |
1.6660 |
|
Support |
1.6230 |
1.6167 |
|
Japanese Yen (JPY)
The Yen declined against the Dollar and Euro, as U.S. continuing claims for unemployment benefits fell to a nine-month low, encouraging demand for higher-yielding assets. Overall, USD/JPY traded with a low of 87.73 and with a high of 88.45.No important data is expected today.
USD/JPY-Last: 88.70
|
Resistance |
89.17 |
89.60 |
|
|
Support |
87.72 |
87.36 |
|
Canadian dollar (CAD)
The Canadian Dollar strengthened for a second day versus the Dollar, touching the strongest level this week as stocks gained and the nation unexpectedly posted a trade surplus. Trade Balance came out better than expected at 0.4B vs. -0.6B forecast. Overall, USD/CAD traded with a low of 1.0478 and with a high of 1.0582. Today, NHPI the previous data came out at 0.5%.
CAD/USD – Last: 1.0512
|
Resistance |
1.0550 |
1.0590 |
1.0648 |
|
Support |
1.0482 |
1.0433 |
|
Research by http://www.ufxbank.com
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