Forex Daily News: August 17, 2010 - USD Down on Mixed Data

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar weakened against most of the other major currencies amid fears over the strength of the U.S. recovery. More concern came after a flurry of mixed U.S. economic data, such as Orders and sales at New York manufacturers that decreased in August for the first time in more than a year. NASDAQ rose by 0.39% and Dow Jones weakened by 0.01%. Crude oil decreased by 0.2%, closing at $75.20 a barrel. Gold (XAU) strengthened by 0.8%, closing at $1226.20 an ounce. Today, Building Permits are expected to remain unchanged at 0.58M, PPI is expected to rise from -0.5% to 0.2%, and Treasury Sec Geithner is Speaking.

EURO (EUR) – The Euro rose versus the Dollar in Forex trading, following the release of mixed data on the U.S. economy that caused markets all over the world to fluctuate. The pair has been trading on a downtrend since last week and trading far away below the 10 moving average on the daily chart. Therefore, the momentum is strongly bearish and the next support on the one hour chart is located at 1.2730 levels. Overall, EUR/USD traded with a low of 1.2734 and with a high of 1.2871. Today, German ZEW Economic Sentiment is expected to weaken from 21.2 to 20.9, ZEW Economic Sentiment is expected at 10.6 vs. 10.7 prior. EUR/USD – Last: 1.2846 

British Pound (GBP) – The Pound rallied against the Dollar on mixed data from the U.S., which led investors to prefer the British currency over the Dollar. The GBP/USD has clearly been on a downward trend over the last few days, and the next support on the daily chart is at 1.5500. The price is still trading below the 10 moving average on the daily chart which also supports a downward trend, and the next resistance on the one hour chart is at 1.5720. Overall, GBP/USD traded with a low of 1.5534 and with a high of 1.5702. Today, CPI is expected at 3.1% vs. 3.2% prior, and the BoE Inflation Letter will be released. GBP/USD - Last: 1.5675 

Japanese Yen (JPY) –The Yen rose against most of its major counterparts, approaching a 15-year high versus the dollar, as signs the global economic recovery is faltering, boosted its appeal as a haven. As long as the USD\JPY is trading below an 86.50 level, a short position is preferred and the momentum is clearly bearish. The next support is located at 84.60 and the 20 moving average supports a downward trend, as well. Overall, USD/JPY traded with a low of 85.21 and with a high of 85.98. No economic data expected today. USD/JPY-Last: 85.35

Canadian dollar (CAD) – The Canadian Dollar swung between gains and losses versus the Dollar after the Japanese economy and manufacturing in the New York region expanded slower than economists had forecast. As long as the USD/CAD is below 1.0500 levels, a short position is preferred. The next support on the one hour chart is located at 1.0350 and the next resistance is located at 1.0500 levels. Overall, USD/CAD traded with a low of 1.0371 and with a high of 1.0465. Today, Foreign Securities Purchases are expected at 9.42B vs. 23.06B prior, and Manufacturing Sales are expected to be negative, -0.4% vs. 0.4% prior. USD/CAD - Last: 1.0411