.

Forex Daily News: July 21, 2010 - The Pound Keeps Pounding

Written by UFXBank Research Team
Rate this item
(0 votes)

USD Dollar (USD) – The dollar weakened against most currencies as the Housing Starts came out 0.55M worse than an expected 0.57M but the Building Permits came out 0.59M better than the expected 0.57M. The Stock Markets turned from sharp declines to positive trends with the NASDAQ and Dow Jones appreciating 1.1% and 0.74% respectively. Crude Oil rose by 0.9% closing at $77.7 a barrel. Gold (XAU) reached fresh 2 month low at $1175 but soon after jumped and closed at $1192 an ounce. Today, Fed Chairman Bernanke will be testifying regarding economic outlook and it might determine short term trend for the dollar.

EURO (EUR) – The Euro was among the currencies that weakened against the dollar after it reached fresh highs at 1.3028 but failed for the third day in a row to hold above the 1.3 zone in Forex Trading and declined below the 1.29 zone. German PPI came out 0.6% better than the expected 0.2%. 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 1.2838 and with a high of 1.3028. No economic data is expected today.

EUR/USD – Last: 1.2880

Resistance

1.2950

1.3020

Support

1.2870

1.2820

1.2770

British Pound (GBP) – The Pound gained versus the dollar at the end of the day, although the negative report of Mortgage Approvals came out at 48k, worse than the expected 52k, and pushed the pair to test the support of 1.5180. The CBI Industrial Trends Orders came out -16 better than an expected -25. 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 1.5152 and with a high of 1.5308. Today, the BOE MPC Meeting Minutes are expected and it might determine a short term trend for the sterling.

GBP/USD - Last: 1.5263

Resistance

1.5320

1.5385

1.5470

Support

1.52

1.5150

1.51

Japanese Yen (JPY) – The Greenback rose for the second day in a row against the Yen that was among the only few currencies which weakened against the dollar. The USD/JPY pair strengthened as stocks in the US extended gains. Breaching the 87.3 level might push the pair higher to 88 zones. Overall, USD/JPY traded with a low of 86.65 and with a high of 87.56. 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 strengthened for a second day against the US Dollar after BOC decided to raise the interest by 0.25% to rate of 0.75% as predicted by economists. Earlier in the trade session there were another few attempts to breach the 1.050 level but failed and pushed the pair below the 1.0450 zone. Breaking the next support of 1.0420 might accelerate the negative momentum for the pair. Overall, USD/CAD traded with a low of 1.0429 and with a high of 1.0585. Today, the Wholesale Sales are expected at 0.3% vs. -0.3% previously.

USD/CAD - Last: 1.0426

Resistance

1.0470

1.0520

1.0580

Support

1.0420

1.0370

1.0280