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Forex Daily News: July 1, 2010 - US Job Data Pushes GBP Below 1.5

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar advanced against the other majors as risk aversion and Dollar bullish momentum continued after US disappointing ADP Non-Farm Employment Change that came out 13K worse than expected 58k. Another negative day was in US Stock Markets with NASDAQ and Dow Jones falling by -1.21% and -0.98% respectively. Crude oil slightly declined closing at 75.25$ a barrel, Gold (XAU) rose by 0.2% closing at 1242.4$ an ounce. Today, the Initial Jobless Claims is expected at 460K vs. 457K previously. The ISM Manufacturing Index is expected at 59 vs. 59.7 previously.

Euro (EUR) – The Euro jumped against the Dollar in Forex Trading to 1.23 zones after the ECB said it would lend banks less than analysts estimated; spurring optimism that funding pressures among financial institutions are lowering, but erased part of the gains after the decision of Moody’s to put Spain’s rating on review for a potential downgrade. The CPI came out 1.4% worse than expected 1.5%. Breaking the 1.2170 support level might push the pair lower. Overall, EUR/USD traded with a low of 1.2165 and with a high of 1.2303. Today, the Manufacturing PMI is expected unchanged at 55.6.

EUR/USD – Last: 1.2209

Resistance

1.2270

1.23

1.2400

Support

1.2170

1.2130

1.2060

British Pound (GBP) – The US negative employment data pushed the Pound to a 3 day low against the dollar breaking down the 1.5 level. The Nationwide HPI came out 0.1% worse than expected 0.3%. Breaking below the 1.4880 support level might push the pair lower. Overall, GBP/USD traded with a low of 1.4930 and with a high of 1.572. Today, the Manufacturing PMI is expected at 57.6 vs. 58 previously.

GBP/USD - Last: 1.4930

Resistance

1.5020

1.5080

1.5130

Support

1.4880

1.4850

1.4800

Japanese Yen (JPY) – The Japanese Yen gained versus the dollar as US stock markets declined and a potential downgrade of Spain was discussed. The Tankan Manufacturing Index came out 1 better than expected -3. Breaking below the 87.80 support level might push the pair lower. Overall, USD/JPY traded with a low of 88.34 and with a high of 88.75. No major economic data is expected today.

USD/JPY-Last: 88.16

Resistance

88.90

89.50

90.00

Support

88.1

Canadian dollar (CAD) – Canada’s Dollar fell against the American dollar to the lowest level in more than three weeks after the GDP reports came out 0% worse than expected 0.2%. Breaching the 1.0710 might push the pair higher. Overall, USD/CAD traded with a low of 1.0465 and with a high of 1.0647.

USD/CAD-Last: 1.0670

Resistance

1.0670

Support

1.06

1.0530

1.0440