USD Dollar (USD) – The Dollar posted mix results across the board. US Markets finished lower, stocks declined by the end of today’s trading session after the worst than expected fundamentals released from the U.S. economy. Trade balance deficit came out at -36.4B in the month of November, worst than expected -34.5B. The Dow Jones fell by 0.34% and NASDAQ lost 1.30%. Commodities also fell. The Crude oil tumbled but managed to close above 80$ a barrel. Gold (XAU) collapsed and closed at 1127$ an ounce. Today, The Federal Budget Balance is expected at -92B vs. -120.3B previously.
EURO (EUR) – The Dollar rose against the Euro. The European currency failed to stay above the 1.4550 level and struggling to hold the critical support of 1.4480. Risk aversion could be extended in the market after bad reports that came out in the US also favoring the downside of the cross. On the technical view, if the 1.4480 level fails to hold, a downside back to 1.44 could be seen. Overall, EUR/USD traded with a low of 1.4452 and with a high of 1.4545. Today, The French CPI is expected at 0.3% vs. 0.1% previously.
EUR/USD – Last: 1.4480
Resistance 1.456 1.459 1.463
Support 1.4465 1.4415 1.4385
British Pound (GBP) – The Pound posted moderate gains against the Dollar and the Euro. The Sterling lost an upside momentum after renewed failure attempt of break above 1.6200 level and retraced to the 1.6150 level. The European Trade Balance index came out at -6.8B, better than the expected -7B. On the technical view, if the 1.6120 level fails to hold, a downside back to 1.6 could be seen. Overall, GBP/USD traded with a low of 1.6061 and a high of 1.6192. Today, The Manufacturing Production is expected at 0.3% vs. 0% previously.
GBP/USD - Last: 1.6065
Resistance 1.624 1.6275 1.6315
Support 1.612 1.6065 1.6025
Japanese Yen (JPY) – The Dollar traded near a three-week low against the Yen on speculation the Federal Reserve will extend its stimulus programs amid signs of the slowing U.S. economic recovery. The Japanese currency rose across the board on the day that the central bank of China announced an increase of 0.50% on reserves requirement for commercial banks. On the technical view, a downtrend back to 90 could be seen as long as the pair below the 91.8. Overall, USD/JPY traded with a low of 90.70 and a high of 92.41.
Resistance 91.3 91.75 92
Support 90.65 90.3 89.85
Canadian dollar (CAD) – The Dollar rose against the commodities-currencies, including the Canadian Dollar. Canada’s Dollar fell the most in almost two weeks as commodities tumbled and the nation unexpectedly posted a trade deficit, spurring speculation the economic recovery may not be as robust as investors anticipated. The Trade balance came out -0.3B worse than expected 0.9B. On the technical view, sustaining above 1.0380 can add to the upside momentum running to 1.05. Overall, USD/CAD traded with a low of 1.0312 and with a high of 1.0412.
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Interview with Matthew Sheppard Senior Forex
Advisor at XForex
1. What is your name and position?
Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.
2. What is your experience and professional background?
In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.
3. What type of clients you deal with?
We deal with clients on all levels from the beginning stages to the more advanced trading levels.
4. Does most of your business activity come from the online or offline world?
Because of our high presence on the web, most of our business comes from the online world.
5. Why should a trader pick XForex from all forex brokers?
Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..
Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.
6. From your experience, what advice would you give a person who wants to enter the forex world?
My advice to the beginning trader entering the Forex world is as follows:
• Learn the market and understand what you’re getting into.
• Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
• Invest smartly and calculate your risks
• Always know when to get out of a trade