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Forex Daily News: August 9, 2010 - Poor NFP Data Sends USD Sliding

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar tumbled against 15 of its 16 major counterparts in Forex Trading after disappointing NFP data which came out -131k twice worse than the expected -65k, showing that U.S economy remains weak and adding concerns about the economic recovery. The Unemployment Rate came out 9.5% better than expected at 9.6%. The Stock Markets in U.S reacted negatively to the data with both the Dow Jones and the NASDAQ sliding by -0.2%. Crude Oil fell by 1.6% closing at 80.82$ a barrel. Gold (XAU) breached the 1200$ level and closed at $1205.10 an ounce. No economic data is expected today.

EURO (EUR) – The Euro appreciated against the dollar after a bad jobs report in the U.S and the pair reached the highest levels since May at 1.3333 but closed below the 1.3 zone. The German Industrial Production Report came out -0.6%, worse than the expected 0.9%. Holding above the support level of 1.3130 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.3156 and with a high of 1.3333. Today, the German Trade Balance is expected at 12.4B vs. 10.6B previously.

EUR/USD – Last: 1.3280

Resistance

1.3300

1.3030

Support

1.3270

1.3240

1.3200

British Pound (GBP) – The Pound gained against the dollar after a negative jobs report in the U.S and the pair reached fresh 6 month highs at 1.5995. The Manufacturing Production Report came out at 0.3%, worse than the expected 0.5%. The PPI Input came out -1%, worse than the expected -0.4%. Holding above the support level of 1.5880 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5838 and with a high of 1.5995. Today, the RICS House Price Balance is expected at 5% vs. 9% previously.

GBP/USD - Last: 1.5975

Resistance

1.5990

Support

1.5950

1.5920

1.5750 

Japanese Yen (JPY) – The dollar traded near an 8 month low against the yen reaching the 85.02 level on a speculation the FED will take steps for providing more stimulus after the far worse than expected NFP data. Holding above the support level of 85.30 might rebound the pair back to the 86 zone. Overall, USD/JPY traded with a low of 85.02 and with a high of 86.17. No major economic data is expected today.

USD/JPY-Last: 85.39

Resistance

85.70

86.00

Support

85.30

85.00

Canadian dollar (CAD) – The Canada's dollar was the only currency which weakened against the US dollar after the NFP data. Crude Oil, Canada's biggest export, fell and pressured the currency down. The Employment Change came out at -9.3%, worse than the expected 10.3%. The Unemployment Rate came out at 8%, worse than the expected 7.9%. The Ivey PMI came out at 54, worse than an expected 56.3. Overall, USD/CAD traded with a low of 1.0146 and with a high of 1.0305. No economic data is expected today. 

USD/CAD - Last: 1.0272

Resistance

1.0300

1.0340

1.0400

Support

1.0225

1.0180

1.0110