UFXBank Daily Review - January 18, 2010

Written by ForexCult Team
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Daily Review 18/01/2010

USD Dollar (USD) – The Dollar gained versus most majors as stocks declined following investor's doubts about the economic recovery. Consumer Price Index came out worse with 0.1% versus 0.2% expected but had no effect. Michigan's Consumer Sentiment came out weaker as well with 72.8. NASDAQ and Dow Jones declined by -1.24% and -0.94% respectively led by drops in the financial sector. Crude dropped by -1.75% closing at 78$ a barrel and Gold (XAU) declined by -1.09% closing at 1130.10$ an ounce. Today is Martin Luther King Day and banks will be closed. Low liquidity and high volatility should be expected. 
EURO (EUR) –The Euro fell versus the Dollar as Greece's debt concerns continued to lower investor's confidence in the Euro. CPI came out as expected with 0.9% and Core CPI came out better with 1.1% versus 1.0% forecast. Overall, EUR/USD traded with a low of 1.4336 and a high of 1.4503. EUR/USD fell after not being able to remain above the 1.45 level. The pair is near its 200 moving day average that will act as a support level. No major economic data expected today.

EUR/USD - Last:  1.4365

Resistance    1.441    1.445    1.4485
Support    1.4335    1.43    1.4265


British Pound (GBP) &ndash