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Forex Daily News: June 28, 2010 - Dollar Weakens Against Major Currencies

Written by UFXBank Research Team
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US Dollar (USD) - The Dollar weakened against most major currencies after Friday’s Q1 U.S GDP revision was lower than expected at 2.7%, instead of 3.0%, indicating slower growth and decreasing the currency’s stability. NASDAQ  strengthened by 0.3% on Friday and Dow Jones weakened by -0.1% and S&P rose by 0.25%, concluding a negative week in U.S markets. Crude Oil rose by 3.1% to 78.86$ a barrel and Gold prices closed at 1256.2 per ounce (+0.85). G20 meetings took place in Canada over the weekend. In those meetings, finance ministers and bankers from 20 industrialized nations are meeting to decide on general policies regarding the global economy. Official press releases can impact the currency markets. Conclusions are planned to be published at the beginning of the week. Today, Personal Spending (0.1% forecast) and Personal Income (0.5% forecast) data is due to be released.

 

Euro (EUR) – the Euro strengthened on Friday against the USD for the 3rd day in a row, as the German Import Prices came out higher than expected, rising for the 8th consecutive month (0.6% VS 0.1% forecast).  The EUR/USD has been recovering the past couple of weeks, with a weekly high of 1.2467, also being a resistance for the uptrend. Breaking this level upwards will reinsure the pair’s movement towards a recovery in the short term. The main support remains at around 1.1876, the monthly low. On Friday, EUR/USD traded between 1.2253 and 1.2395, closing at 1.2375. No major economic data expected today.

EUR/USD – Last: 1.2379

Resistance

1.2396

1.2468

 

Support

1.2365

1.2260

1.2209

 

British Pound (GBP) – The Pound strengthened against most major currencies on Friday Forex Trading, alongside the Euro’s recovery for the past week. The GBP/USD closed at 1.5060, after trading between 1.4855 and 1.5077. The next foreseen resistance on the daily chart is located in the 1.53 area, and the main support levels remain at 1.4450. The overall trend for the past weeks is upwards. No major economic data expected today.

GBP/USD – Last: 1.5059

Resistance

1.5078

 

 

Support

1.5029

1.4996

1.49.16

 

Japanese Yen (JPY) – The Yen has been strengthening against major currencies for the past week, with the USD/JPY closing around the low of the day at 89.20 on Friday. Tokyo Core CPI was released on Friday showing a slower pace of declining consumer prices, indicating a moderating deflation. Japanese Retail Sales came out with 2.8% worse than 4.7% expected. The USD/JPY has been trading on Friday between 89.16 and 89.77. The main support on the daily chart is around 88.95, and the resistance remains above 91.5. Today, Household Spending is expected with 0.4% versus -0.7% prior. Prelim Industrial Production is expected with 0.1% versus 1.3% prior.

USD/JPY – Last: 89.37

Resistance

89.50

89.77

89.97

Support

89.15

 

 

 

Canadian Dollar (CAD) - The Canadian Dollar strengthened against the Dollar on Friday as Crude Oil, Canada’s largest export, prices rose by 3.1%. On the daily chart, USD/CAD has encountered a downtrend trend line from previous highs, and has a resistance at 1.0470. The support is at 1.0140 levels, and if the pair breaks it, the downtrend is likely to continue. On Friday, the pair was trading between 1.0340 and 1.0442. No major economic data expected today.

USD/CAD – Last: 1.0342

Resistance

1.0374

1.0470

 

Support

1.0335

1.0272

1.0181