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Forex News: June 24, 2010 - Dollar Falls as Euro Rises

Written by UFXBank Research Team
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USD Dollar (USD) - The Dollar fell across the board in Forex Trading after the FED left rates unchanged at 0.25% as expected and said that economic recovery is proceeding. Earlier, New Home Sales data came out 300K worse than expected 450k. The Stock markets was little changed with NASDAQ Decreasing -0.33% an Dow Jones inclined by 0.05%. Crude Oil dropped by -1.8% closing at 76$ a barrel. Gold (XAU) was little changed closing at 1,237$ an ounce. Today, The Core Durable Goods Orders is expected at 1.1% vs. -1.1% previously. The Initial Jobless Claims is expected at 460K vs. 472K previously.

EURO (EUR) - The Euro rose sharply against the Dollar following the FOMC statement and erased previous losses after it fell to 1.22 zone. The Manufacturing PMI came out 55.6 better than expected 55.5. Overall, EUR/USD traded with a low of 1.2208 and a high of 1.2343. Holding above the support level of 1.2270 levels keeps the momentum positive for the pair. Today, the Industrial New Orders is expected at 1.6% vs. 5.7% previously.

EUR/USD - Last:  1.2320

Resistance

1.2330

1.2360

1.24

Support

1.2270

1.2220

 

British Pound (GBP) – The Pound is consolidated important gains against the Dollar and reached 6 week highs after FOMC decision. The MPC Meeting Minutes first triggered the rally in the pair. Overall, GBP/USD traded with a low of 1.48 and a high of 1.4972. Holding above the support level of 1.4880 levels keeps the momentum positive for the pair. No economic data is expected today.

GBP/USD - Last:  1.4875

Resistance

1.4980

Support

1.4930

1.4880

1.48

 

Japanese Yen (JPY) – The dollar fell to the weakest level versus the yen in almost a month after the FES decision to keep interest rates at record lows longer than some analysts forecast as Europe’s debt crisis threatens growth. Trade Balance came out 0.42T worse than expected 0.64T. Overall, USD/JPY traded with a low of 89.72 and a high of 90.57. Breaking the 89.70 level might extend the downtrend of the pair. Today, the Tokyo Core CPI is expected at -1.5% vs. -1.6% previously.

USD/JPY-Last: 89.85

Resistance

90.25

90.70

91.10

Support

89.7

 

Canadian Dollar (CAD) – The Canadian Dollar weakened versus the Dollar as crude oil, the country’s biggest exports, prices declined. The Core Retail Sales came out -1.2% worse than expected 1.7% and it added to the Canadian Dollar weakness. Overall, USD/CAD traded with a low of 1.0270 and a high of 1.0458. Holding above the support level of 1.0330 levels keeps the momentum positive for the pair. No economic data is expected today.

USD/CAD - Last:  1.0390

 

Resistance

1.0455

1.0520

Support

1.0330

1.0250