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Forex Daily News: July 7, 2010 - The Euro Strikes Back

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar weakened across the board in Forex Trading, after a report showed slower growth in the U.S. The ISM Non - Manufacturing Index came out at 53.8, worse than the expected 55. Stock Markets in the U.S jumped more than 2% as investors came back to trade after the holiday, but hardly managed to hold gains with Dow Jones increasing by only 0.59% and the NASDAQ rising by a mere 0.1%. Crude Oil almost reached the 74$ but failed to hold and fell back to 72$ a barrel. Gold (XAU) fell below the 1200$ and closed at 1193$ an ounce. No economic data is expected today.

Euro (EUR) – The Euro advanced versus the Dollar to a 6 week high as reports in the US showed slower economic growth than expected. Breaching the 1.2670 level might extend the positive momentum in the pair. Overall, EUR/USD traded with a low of 1.2479 and with a high of 1.2660. Today, the GDP is expected to remain unchanged at 0.2%. German Factory Orders are expected at 0.5% vs. 2.8% previously.

EUR/USD – Last: 1.2585

Resistance

1.26

1.2660

Support

1.2570

1.2480

British Pound (GBP) – The Pound advanced against the Dollar as stock markets climbed, decreasing demand for the safest assets. Another attempt to breach the resistance level at 1.5220 failed and the Sterling declined below the 1.52 zone. Breaching the 1.5220 level might extend the positive momentum in the pair. Overall, GBP/USD traded with a low of 1.5080 and with a high of 1.5224. No economic data is expected today.

GBP/USD - Last: 1.5120

Resistance

1.5140

1.5220 

Support

1.5070 

1.5 

Japanese Yen (JPY) – The Dollar fell against the Japanese Yen but still the pair capped in a narrow range. Breaching the 87.8 level will turn the momentum positive for the pair. Overall, USD/JPY traded with a low of 87.33 and with a high of 87.96. No major economic data is expected today.

USD/JPY-Last: 87.40

Resistance

87.8

88.3 

Support

87.3 

87

Canadian dollar (CAD) – The American Dollar was weakened by economic data and Canada’s Dollar appreciated for the first time in 3 days. Breaking the support level of 1.0530 turns the momentum to negative for the pair. Overall, USD/CAD traded with a low of 1.0484 and with a high of 1.0675. Today, the Ivey PMI is expected at 64.2 vs. 62.7 previously.

USD/CAD-Last: 1.0563

Resistance

1.0580

1.0670

Support

1.0530

1.0480