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Daily Forex Review: June 29, 2010 – The Dollar Gains Strength as the Euro Declines

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar was mixed against other major currencies in Forex Trading after official data showed that U.S. consumer spending rose at a faster rate than expected in May. Moreover, the leaders of the world's biggest economies agreed on a timetable for halving their budget deficits within three years at the Group of 20 summits in Canada. NASDAQ and Dow Jones weakened by -0.05% and -0.13% respectively. Crude Oil declined by -0.9% closing at 78.25$ a barrel, Gold (XAU) fell by -1.4% closing at 1237.80$ an ounce. Today, CB Consumer Confidence is expected to weaken from 63.3 to 62.8.

EURO (EUR) – The Euro fell against almost all of the majors, dropping the most in 3 weeks versus the Dollar after U.S. data showed inflation remains muted and Group of 20 leaders agreed on a target for cutting budget deficits. The main support on the daily chart of the EUR/USD is located at 1.2200 levels, if it breaks this level the Euro probably will decrease. Overall, EUR/USD traded with a low of 1.2265 and with a high of 1.2397. No economic data expected today.

EUR/USD – Last: 1.2266








British Pound (GBP) – The Pound rose to its highest level against the Dollar in 7 weeks as Group of 20 leaders endorsed budget-deficit targets, said they’ll focus on nurturing growth and avoided taxing banks in England. As long as the GBP/USD trades above 1.5000 the momentum is likely to remain bullish, the RSI and 10 period daily moving averages support an upward trend as well. Overall, GBP/USD traded with a low of 1.5016 and with a high of 1.5129. No major economic data expected Today.

GBP/USD - Last: 1.5100







Japanese Yen (JPY) –The Yen gained slightly versus the Dollar as more signs the global economic recovery is slowing raised risk aversion and demand for the safety of the Yen. Japan’s retail sales rose at the slowest pace since January, coming out at 2.8% vs. 4.7% forecast, a sign that the Japanese economic has not recovered yet. Prelim Industrial Production came out at -0.1% vs. 0.1% forecast and the Unemployment Rate at 5.2% vs. 5.0% forecast .The main resistance of the USD/JPY is 90.0 level as long it's trading below this level a short position is preferred, the next support is located at 89.00 level. Overall, USD/JPY traded with a low of 89.06 and with a high of 89.46. No economic data expected today.

USD/JPY-Last: 89.09







Canadian dollar (CAD) – The Canadian Dollar swung between gains and losses as stocks fell and Crude Oil declined, damping demand for riskier assets. As long the USD/CAD below 1.0400 levels a short position is preferred. Overall, USD/CAD traded with a low of 1.0320 and with a high of 1.0372. No major economic data expected Today.

USD/CAD-Last: 1.0358








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