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Forex Daily News: August 10, 2010 - Dollar Rebounds

Written by UFXBank Research Team
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USD Dollar (USD) –  The dollar gained across the board in Forex Trading as a profit taking characterized the market before the FOMC statement today. The Stock Markets in the U.S. advanced with the Dow Jones gaining 0.42% and the NASDAQ rising by 0.75%. Crude Oil advanced by 1% and closed at $81.50 a barrel. Gold (XAU) seems to have stalled its rally and closed at $1201 an ounce. Today, the Nonfarm Productivity is expected at 0.1% vs.2.8% previously. The Unit Labor Cost is expected at 1.4% vs. -1.3% previously. After the FOMC Statement an Interest Rate Decision is expected unchanged at 0.25%.

EURO (EUR) – The Euro weakened against the dollar as it could not hold above the 1.33 zone and fell back to trade below the 1.32 zone against the Dollar, which was supported by the lack of fundamental data and some risk aversion before the FED's decision today in U.S. The German Trade Balance came out 12.3B worse than the expected 12.4B. Breaking below the support level of 1.3130 turns the momentum to negative for the pair. Overall, EUR/USD traded with a low of 1.3140 and with a high of 1.3307. Today, the German CPI is expected unchanged at 0.2%. The French Industrial Production is expected at 0.1% vs. 1.7% previously. EUR/USD – Last: 1.3146           

 

British Pound (GBP) – The Pound lost gains to the dollar after struggling with the 1.5950 area and fell back below the 1.5850 zone. The RICS House Price Balance came out -8% worse than the expected 5%. Breaking below the support level of 1.5830 turns the momentum to negative for the pair. Overall, GBP/USD traded with a low of 1.5772 and with a high of 1.5995. Today, the Trade Balance is expected at -7.7B vs. -8.1B previously. The Nationwide Consumer Confidence is expected at 60 vs. 63 previously. GBP/USD - Last: 1.5801
Japanese Yen (JPY) – The Dollar gained versus the Yen and moved upwards from the 85 low to the 86 zones according to the main trend of the dollar's strength across the board and in expectation of the Interest Rate Decision in Japan. Holding above the support level of 85.30 turns the momentum to positive for the pair. Overall, USD/JPY traded with a low of 85.24 and with a high of 86.04. Today, the Interest Rate Decision is expected unchanged at 0.1%. USD/JPY-Last: 85.81


Canadian dollar (CAD) – Canada's dollar slightly weakened versus the U.S Dollar as it traded in a narrow range on speculations that the FED will take steps to provide more stimulus in the U.S. Breaching above the resistance level of 1.03 turns the momentum to positive for the pair. Overall, USD/CAD traded with a low of 1.0255 and with a high of 1.0298. Today, The Housing Starts are expected at 185K vs. 193K previously. USD/CAD - Last: 1.0295