• Trade Now

UFXBank Forex Outlook: Dollar Rises on Treasury Yields

Written by UFXBank Research Team
Rate this item
(0 votes)

USD Dollar (USD) – The Dollar rose against the other major currencies as Treasury yields reached a seven month high on stronger than forecast economic data, and concern that Europe’s debt crisis will spread, boosted demand for the U.S. currency. The NASDAQ increased by 0.21% and the Dow Jones weakened by 0.06%. Crude oil rose by 52 cents and closed at $88.22 a barrel. Gold (XAU) strengthened by 0.3% and closed at $1374.90 an ounce. No economic data is expected today.

Euro (EUR) – The Euro dropped to a two week low against the dollar on concern that an agreement reached at the European Union summit this week won’t contain the region’s debt problems. The next support of the EUR/USD on the one hour chart is 1.3130, and if the pair breaks below this rate, the euro will continue with its negative trend. Overall, EUR/USD traded with a low of 1.3133 and with a high of 1.3359. Today, Current Accounts are expected to decline from -13.10B to -6.20B, and German PPI is expected at 0.30% vs. 0.40% prior.

EUR/USD – Last: 1.3140







British Pound (GBP) – The Pound weakened versus the Dollar on Friday as European debt concern, and the good Treasury result, supported a weaker pound. The momentum of GBP/USD in the past week has been bearish, and as long as the pair is trading below 1.5600 levels, a short position is preferred. The RSI indictor on the daily chart also supports a downward trend. Overall, GBP/USD traded with a low of 1.5454 and with a high of 1.5647. No major economic data is expected today.

GBP/USD - Last: 1.5508








Japanese Yen (JPY) –The Yen was stable versus the Dollar as the greenback strengthened owing to good data from the Treasury and Europe’s debt crisis, both of which caused investors to prefer safety assets. As long as the USD/JPY is trading above 83.50 levels, a long position is preferred, and the next resistance level is located at 84.50. Overall, USD/JPY traded with a low of 83.69 and with a high of 84.20. No economic data is expected today.

USD/JPY-Last: 83.92








Canadian dollar (CAD) – The Canadian Dollar fell to a two week low versus the US Dollar in a day of Forex trading, as concern that Europe’s debt crisis will broaden, damped investors’ risk appetite. This and U.S. Treasury yields reaching a near seven month high, made the U.S. currency far more attractive. The resistance level of the USD/CAD on the four hour chart is located at 1.0150, and if the price breaks above this level, the momentum will continue to be positive for the US Dollar. Overall, USD/CAD traded with a low of 1.0037 and with a high of 1.0146. Today, Wholesale Sales are expected to rise from 0.40% to 0.70%.

USD/CAD - Last: 1.0130










Add comment

Broker of the Month

logoUFXMarkets provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXMarkets traders can access the biggest market in the world 24 hours a day with ease.

By keeping their platform, site and deposit process simple, safe and secure, UFXMarkets have become the web’s premier online forex trader.

Currency converter


Which is the Best Forex Broker you have traded with?

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.