UFXBank Daily Review - February 4, 2010

Written by ForexCult Team
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Daily Review 4/2/2010

USD Dollar (USD) – The Dollar fell during the Asian session across the board but then recovered sharply and finished with important gains against major. Stocks lost ground in the US and fell moderately despite a better than expected data of The ADP Nonfarm Employment Change  which came out -22K vs. -40K expected. Dow Jones lost 0.26% and NASDAQ managed to finish with a marginal increase of 0.04%. Crude oil jumped to 78$ level but failed to hold and fell back closing at 77.07$ a barrel. Gold (XAU) closed at 1109$ an ounce. Today, Initial Jobless Claims are expected at 455k vs. 470K previously. Nonfarm Productivity is expected at 6% vs. 8.1% previously and The Unit Labor Cost is expected unchanged at 2.5%.
EURO (EUR) – Euro turned lower after the release of better than expected January ADP employment report as the report fuels US recovery hopes and higher bond yields. It failed to hold above 1.4 and tumbled to levels below 1.39. Retail Sales came out 0% worse than 0.4% expected. The pair EUR/USD ended the day around daily lows. If the pair sustains above 1.3830 levels a rebound to 1.4020 could be seen. Overall, EUR/USD traded with a low of 1.3884 and a high of 1.4026. Today, German Factory Orders are expected at 0.2% vs. 2.8% previously and the Interest rate decision is expected unchanged at 1% and will attract most attention.
EUR/USD - Last:  1.389

Resistance    1.395    1.399    1.4025
Support    1.385    1.3775    1.375



British Pound (GBP) &ndash