UFXBank Daily Review - April 28, 2010

Written by ForexCult Team
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Daily Review 28/4/2010

USD Dollar (USD) – The Dollar gained versus all majors except the Yen after S&P cut the rating for Portugal and lowered Greece's credit rating 3 steps to junk. The rating cuts by S&P strengthened risk Aversion and investors turned to the safety of the Dollar and the Yen. NASDAQ and Dow Jones plunged by -2.04% and -1.9% respectively. Crude Oil weakened by -2.09% closing at 82.44$ a barrel. Gold (XAU) gained by 0.71% closing at 1,161.7$ an ounce. Today, FOMC Interest Rate statement is expected unchanged at 0.25% and will attract investor's attention. Crude Inventories are expected with 0.9M versus 1.9M and are likely to cause volatility in Crude prices.

EURO (EUR) –The Euro plunged versus the Dollar and most other majors after S&P cut the credit rating for Portugal and Greece and is trading below 1.32 for the first time since April 2009. Europe debt crisis spreads to Portugal and might spread to Ireland and Spain soon. Overall, EUR/USD traded with a low of 1.3144 and a high of 1.3395. EUR/USD broke below the support at 1.32 and the bearish trend is likely to continue. Today, German Prelim CPI is expected with 0.1% versus 0.5% prior.
EUR/USD - Last:  1.3180

Resistance    1.3205    1.3265    1.3330
Support    1.3145    1.309   


British Pound (GBP) –