EURO (EUR) –The Euro plunged versus the Dollar and most other majors after S&P cut the credit rating for Portugal and Greece and is trading below 1.32 for the first time since April 2009. Europe debt crisis spreads to Portugal and might spread to Ireland and Spain soon. Overall, EUR/USD traded with a low of 1.3144 and a high of 1.3395. EUR/USD broke below the support at 1.32 and the bearish trend is likely to continue. Today, German Prelim CPI is expected with 0.1% versus 0.5% prior.
EUR/USD - Last: 1.3180
Resistance 1.3205 1.3265 1.3330
Support 1.3145 1.309
British Pound (GBP) – The Pound declined versus the Dollar as equity markets declines following S&P credit rating cut for Portugal and Greece. CBI Realized Sales came out short with 13 versus 16 expected and BBA Mortgage Approvals came out weaker with 34.9K versus 39.3K contributing to the negative sentiment. Overall, GBP/USD traded with a low of 1.5224 and a high of 1.5476. GBP/USD is trading slightly above its 50 day moving average. If it will cross below 1.52 it would return to its long term downtrend. No economic data expected today.
GBP/USD - Last: 1.5250
Resistance 1.5295 1.5350 1.5425
Support 1.5220 1.5185
Japanese Yen (JPY) –The Yen gained versus the Dollar as risk aversion grew and investors turned to the safety of the Yen. Overall, USD/JPY traded with a low of 92.81 and a high of 94.03. USD/JPY has turned downwards after not being able to cross above the 94.35 resistance. If the pair drops below the support at 93 the momentum is likely to turn positive for the Yen. Today is a bank holiday and Japanese banks will be closed.
Resistance 93.90 94.35
Support 93 92.75 93
Canadian Dollar (CAD) – The Canadian Dollar declined versus the Dollar as economic worries surrounding EU debts caused investors to turn away from higher yielding currencies. Overall, USD/CAD traded with a low of 1.0002 and a high of 1.0181. USD/CAD moved higher after not being able to make new lows. The main trend continues to be downwards and the pair has resistance at 1.02 with the meeting with the 50 day moving average. No economic data expected today.
USD/CAD - Last: 1.0160
Resistance 1.0180 1.0220
Support 1.0115 1.0090 1.0065