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UFXBank Forex Outlook: USD Rises as Interest Rate Stays Unchanged

Written by UFXBank Research Team
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USD Dollar (USD) – The U.S. currency rose against most of the major currencies after the Fed left the interest rate at 0.25%, along with Retail Sales and the PPI coming out better than expected. The NASDAQ rose by 0.11% and the Dow Jones rose by 0.42%. Crude oil fell by 0.4% and closed at $88.28 a barrel, while Gold (XAU) rose yesterday, closing at $1404.30 an ounce. Today, the Core CPI (MoM) is expected at 0.10% vs. $0.00 last time and the CPI is expected unchanged at 0.20%.

Euro (EUR) – The euro reached 1.3500 levels against the Dollar, but fell after the Federal Reserve didn't change the Interest Rate in the United States. As long as the pair is trading below 1.3500 levels, a short position is still preferred according to the daily chart. Overall, EUR/USD traded with a low of 1.3355 and with a high of 1.3498. Today, the Employment Change (QoQ) is expected at 0.20% vs. 0.00% previously.

EUR/USD – Last: 1.3351

Resistance

1.3394

1.3495

Support

1.3308

1.3190

British Pound (GBP) – The Pound fell against the Dollar in Forex trading after the CPI came out at 3.30%, better than the expected 3.20%. The next resistance level of GBP/USD, according to the daily chart, is located at 1.5900. The pair broke this level yesterday, but fell back to 1.5760 levels after the interest rate decision in the U.S. If the rate breaks above this rate, a long position is preferred. If the rate breaks below the 1.5700 levels, the pair could decline to 1.5600 levels. Overall, GBP/USD traded with a low of 1.5738, and with a high of 1.5911. Today, the Claimant Count Change is expected at -3.00K vs. -3.70K previously.

GBP/USD - Last: 1.5763

Resistance

1.5810

1.5863

 

Support

1.5721

1.5667

 

Japanese Yen (JPY) –The Yen fell against the Dollar for a second day before a report was released that economists said will show U.S. industrial production expanded last month, adding to signs the economic recovery is gathering pace( in U.S.A). As long as the USD/JPY is trading above 83.00 levels, a long position is preferred, and the next resistance level is located at 84.40. Overall, USD/JPY traded with a low of 82.84 and with a high of 84.82. Today, no economic data is expected.

USD/JPY-Last: 83.81

Resistance

83.90

84.33

Support

83.45

82.83

Canadian dollar (CAD) The Looney rose for a 5th day as gains in commodities and stocks made currencies related to economic growth more attractive. The resistance level of the USD/CAD on the 1 hour chart is located at 1.0150, and if the price breaks above this level, the momentum will become positive for the US Dollar. Overall, USD/CAD traded with a low of 1.0029 and with a high of 1.0110. Today, Manufacturing Sales (MoM) is expected at 1.10% vs. -0.60% previously.

USD/CAD - Last: 1.0073

Resistance

1.0100

1.0150

Support

1.0050

1.0019