• Trade Now

Forex Daily News: August 16, 2010 - USD on the Rise

Written by UFXBank Research Team
Rate this item
(0 votes)
USD Dollar (USD) – The Dollar continued to advance against most majors on Friday as the Federal Reserve said the economic recovery will be “more modest”, that it won’t begin to shrink its balance sheet yet and data from Europe, China and America fueled demand for safety currencies like the Dollar. Retail Sales came out worse than expected at 0.4% vs. 0.5% forecast and CPI rose a bit from the forecast, 0.3% vs. 0.2%. NASDAQ and Dow Jones weakened by 0.77% and 0.16%, respectively. Crude oil decreased by 0.5% closing at $75.39 a barrel, while Gold (XAU) weakened by 10 cents closing at $1216 an ounce. Today, TIC Long-Term Purchases are expected to rise from 35.4B to 36.3B.

EURO (EUR) – The Euro weakened to a 3-week low against the U.S. dollar amid fears that the global economic recovery is losing momentum. The pair has been trading downwards since last week and trading far 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 1.2750 levels. Overall, EUR/USD traded with a low of 1.2749 and with a high of 1.2906. Today, CPI is expected to remain at 1.7%. EUR/USD – Last: 1.2777    

British Pound (GBP) – The Pound continued to decline for the first week since July 9 versus the Dollar after the Bank of England said U.K. economic growth will probably peak at a 3 percent annual pace, instead of the 3.6 percent rate forecast in May. The GBP/USD has been on a clear downward trend in the last few days of Forex Trading. The next support on the daily chart is 1.5500, the price trading below the 10 moving average on the daily chart, which supports a downward trend as well. Overall, GBP/USD traded with a low of 1.5572 and with a high of 1.5679. No economic data expected today. GBP/USD - Last: 1.5573

Japanese Yen (JPY) –The Yen weakened from a 15-year high against the dollar and fell versus the euro after Japanese officials said they’re closely watching the rise of the currency, fueling concern its surge in strength may be capped. GDP came out better than expected at 2.2% vs. 1.3% forecast. As long the USD\JPY is trading below 87.0 levels, 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 85.56 and with a high of 86.37. No economic data is expected today. USD/JPY-Last: 85.80

Canadian dollar (CAD) – The Canadian Dollar declined against the US Dollar for the first week in a month as stocks and commodities tumbled, amid economic data pointing to a slowing recovery in the U.S. - the nation’s largest source of trade. 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 1.0350 and with a high of 1.0439. No economic data is expected today. USD/CAD - Last: 1.0417

Add comment

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.

Broker of the Month

5_small_logoUFXBank provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXBank 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, UFXBank have become the web’s premier online forex trader.