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UFX Bank Daily Outlook: GBP Hits 10-Week Low vs. USD

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar gained across the board on Friday as European debt worries extended on concerns that Portugal and Spain will follow the lead of Greece and Ireland. These fears sent investors to the safe haven currencies like the greenback. The Stock Market in the U.S. closed negative as the Dow Jones decreased by -0.85% and the NASDAQ lost -0.34%. Crude Oil closed almost unchanged, fluctuating around the $84 level. Gold (XAU) lost -0.8% and closed at $1362.40 an ounce. No economic data is expected today.

Euro (EUR) – The Euro fell against the dollar in Forex trading on Friday as it reached the 1.32 zone on pressure that continued in the Euro zone. However, after an 85 billion euro aid package agreed to between Ireland and the EU/IMF, the market opened positive this week and the pair jumped above the 1.3340 levels. Ultimately, the pair failed to hold those levels and was crushed below the 1.32 area, reaching new 9 week lows. The German Prelim CPI came out at 0.1%, worse than the expected 0.2%. Holding above the support level of 1.3170 might push the pair upwards as oversold conditions are seen in the pair. Overall, EUR/USD traded with a low of 1.3181 and with a high of 1.3362. No economic data is expected today.

EUR/USD – Last:  1.3230

Resistance

1.3260

1.3290

1.3420

Support

1.3180

British Pound (GBP) – The Pound weakened against the dollar reaching 10 week lows as the markets opened this week. The Pound found support around the 1.5550 zones and then bounced back above the 1.56 area. Holding above the support level of 1.5550 might push the pair upwards as oversold conditions are seen in the pair. Overall, the GBP/USD traded with a low of 1.5558 and with a high of 1.5770. Today, Net Lending to Individuals is expected at 0.8B vs. 0.4B previously. The GfK Consumer Confidence report is expected unchanged at -19.

GBP/USD - Last: 1.5600

Resistance

1.5640

1.5730

1.5840

Support

1.5560

Japanese Yen (JPY) – The Dollar is gathering more power against the Yen and is furthering from the 80 levels at a low and safe pace approaching the 84 zone. Breaching above the 84.2 resistance level might push the pair for further strength. Overall, USD/JPY traded with a low of 83.54 and with a high of 84.18. Today, The Unemployment rate is expected unchanged at 5%. The Prelim Industrial Production is expected at -3.2% vs. -1.6% previously.

USD/JPY-Last: 84.11

Resistance

84.20

Support

84.00

83.80

83.55

Canadian dollar (CAD) – The Dollar gained against Canada's dollar as concerns on the Euro zone debt crisis and conflict between North & South Korea boosted demand for safer assets, and risk aversion was seen. Breaching the 1.0240 resistance level might extend the pairs bullish momentum. Overall, USD/CAD traded with a low of 1.0083 and with a high of 1.0245. Today, the Current Account index is expected at -15.2B vs. -11B previously.

USD/CAD - Last: 1.0203

Resistance

1.0260



Support

1.0160

1.0080

1.0030