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Forex Daily News: July 20, 2010 - Dollar Holds Steady

Written by UFXBank Research Team
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USD Dollar (USD) – The dollar traded mixed against the majors and with no significant change as investors seems to be unclear about the following trend of the market. US Stock Markets recovered a little from yesterdays loses with NASDAQ and Dow Jones appreciating 0.88% and 0.56% respectively. Crude Oil rose by 0.7% closing at $76.5 a barrel. Gold (XAU) tumbled for another day and closed at $1183 an ounce. Today, the Building Permits are expected to be unchanged at 0.57M. The Housing Starts are expected at 0.57M vs. 0.59M previously.

EURO (EUR) – The Euro advanced little in Forex Trading against the dollar with another attempt to reach the 1.3 zone but declined once again from this area and retraced back to 1.29 zones. The Current Account came out -5.8B worse than the expected -0.3B. The momentum seems to remain positive for the pair as holding above the major support level at 1.2770. Overall, EUR/USD traded with a low of 1.2869 and with a high of 1.2990. Today, the German PPI is expected at 0.2% vs. 0.3% previously.

EUR/USD – Last: 1.2961

Resistance

1.3

Support

1.2950

1.2870

1.2820

British Pound (GBP) – The Pound fell versus the dollar for a second day and traded near the 1.52 zone as investors started realizing profits after the rally it made last week. The momentum seems to remain positive for the pair as holding above the major support level at 1.5180. Overall, GBP/USD traded with a low of 1.52 and with a high of 1.5349. Today, Prelim Mortgage Approvals is expected at 52K vs. 50k previously. The CBI Industrial Trends Orders is expected at -25 vs. -23 previously.

GBP/USD - Last: 1.5253

Resistance

1.5270

1.5385

1.5470

Support

1.52

1.5150

1.51

 

Japanese Yen (JPY) – As the Banks in Japan were closed the Dollar slightly advanced versus the Yen and seems capped in a tight range as it usually happens after a strong move in the pair. BOJ might attempt to stop the Yen's rally to protect the import/export balance. . The downtrend of the pair might stop if the 85.8 level fails to break and rebound is possible back to 88 zones. Overall, USD/JPY traded with a low of 86.42 and with a high of 87.21. . No economic data is expected today.

USD/JPY-Last: 87.08

Resistance

87.3

87.7

88.05

Support

86.7

86.3

Canadian Dollar (CAD) – Canada’s dollar slightly gained against the U.S. currency for the first time in 4 days on a speculation that BOC might increase interest rates for the second time. Foreign Securities Purchase came out 23.16B better than expected 8.05B. Breaching the resistance level at 1.0580 might push the pair higher. Overall, USD/CAD traded with a low of 1.0497 and with a high of 1.0577. Today, the Interest Rate Decision is expected to rise from 0.5% previously to 0.75%.

USD/CAD - Last: 1.0507

Resistance

1.0520

1.0580

Support

1.0470

1.0420