Forex Daily News: July 8, 2010 - Majors Prove Strong Against the Dollar

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar declined against most majors as global stocks rallied strongly on the outlook for U.S. retail sales, reducing safety demand for the world’s main reserve currency.  NASDAQ and Dow Jones jumped by 3.13% and 2.82% respectively, crude oil rose by 2.9 closing at 74.07$ a barrel, Gold (XAU) strengthened  by 0.3% closing at 1198.9$ an ounce. Today, Unemployment Claims are expected to weak from 472K to 461K.

EURO (EUR) – The Euro erased early losses and climbed to a six-week high against the Dollar in Forex Trading. This came after it had weakened during the day as German factory orders unexpectedly fell for the first time in five months in May, the report came out at -0.5% vs. 0.5% forecast. In the end, it closed almost unchanged after stock markets became positive. The EUR/USD has been trading upwards since last week and broke its resistance levels on the daily chart at 1.2500, therefore the momentum is bullish, as long as the price is above 1.2500 a long position is preferred. Overall, EUR/USD traded with a low of 1.2553 and with a high of 1.2664. Today, the interest rate decision is expected to remain unchanged at 1.0%, this will be announced at the ECB Press Conference.

EUR/USD – Last: 1.2664







British Pound (GBP) – The Pound rose for a second day as market sentiment turned positive after U.S. stock markets rallied, which led investors to buy risky assets instead. The GBP/USD has been trading upwards since June, and therefore the momentum is clearly bullish. The main resistance level on the daily graph is located at 1.5260. Overall, GBP/USD traded with a low of 1.5081 and with a high of 1.5219. Today, the interest rate decision is expected to remain unchanged at 0.5%, Manufacturing Production is expected to become positive from -0.4% to 0.4%.

GBP/USD - Last: 1.5211







Japanese Yen (JPY) –The Yen strengthened against the Dollar and the Euro during the day after bad news was released, which supported safety currencies like the Yen. At the end of the American session, the Dollar rebounded nicely and closed positive, successfully weakening the yen. The main resistance of the USD/JPY is at the 89.0 level. As long it's trading below this level a short position is preferred, the 10 moving average supports a downward trend as well. Overall, USD/JPY traded with a low of 87.02 and with a high of 87.77. No major news expected today.

USD/JPY-Last: 88.36







Canadian dollar (CAD) – The Canadian Dollar strengthened to the highest level in more than a week against the Dollar as stocks rallied and crude oil climbed, improving the outlook for currencies tied to growth. As long the USD/CAD is below 1.0550 levels a short position is preferred. Overall, USD/CAD traded with a low of 10467 and with a high of 1.0606. No major news expected today.

USD/CAD - Last: 1.0448