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Forex Daily News: August 26, 2010 - Stocks Rise, USD Weakens

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar traded mixed after the Core Durable Goods Orders came out at 3.8%, much weaker than the expected 0.5%. In addition, New Home Sales plunged to the lowest level since 1963. The report came out at 276K, worse than an expected 330K, tacking on more bad news to an already weakening economic recovery. NASDAQ and Dow Jones rose by 0.84% and 0.2% respectively after a negative opening. Crude Oil closed positive after earlier breaking the $71 level and soon recovered to close at $72.87 a barrel. Gold (XAU) hit another rally on the upside, closing at $1240 an ounce. Today, the Initial Jobless Claims is expected at 485K vs. 500K previously.

EURO (EUR) – The Euro gained versus the dollar in Forex Trading for the first day after 5 consecutive days of losses. The German IFO Business Climate came out 106.7, better than the expected 105.8. An upside reversal pattern might be seen if the pair will hold above the 1.2670 levels. Overall, EUR/USD traded with a low of 1.2607 and with a high of 1.2725. Today, the Gfk German Consumer Climate is expected at 4.1 vs. 3.9 previously.

EUR/USD – Last: 1.2696

Resistance

1.2640

1.2730

1.2790

Support

1.2580

British Pound (GBP) – The Pound gained against the dollar after testing and holding above the 1.54 support zone. Breaching the 1.5485 resistance level might fuel a positive momentum for the pair. Overall, GBP/USD traded with a low of 1.5388 and with a high of 1.5487. Today, the CBI DTS data, which measures the health of the retail sector, is expected at 25 vs. 33 previously.

GBP/USD - Last: 1.5490

Resistance

1.5520

1.5600

Support

1.5460

1.5380

Japanese Yen (JPY) – The Dollar rose from the bottom versus the Yen on speculations that Japan’s policy makers will take measures to halt the currency’s rapid advance. Breaching the 85 level will put the pair back on the known channel it was on before the plunge. Overall, USD/JPY traded with a low of 83.89 and with a high of 84.87. Today, the Tokyo Core CPI is expected at -1.2% vs. -1.3% previously.

USD/JPY-Last: 84.72

Resistance

84.90

85.40

Support

84.50

83.80

Canadian dollar (CAD) – The US Dollar fell against the Canadian dollar after 4 consecutive days of rising. This occurred as stocks rose from the day’s lows and Crude Oil, Canada's biggest export commodity, also jumped. Holding below the 1.0660 resistance level, might push the pair downwards. Overall, USD/CAD traded with a low of 1.0572 and with a high of 1.0666. No economic data is expected today.

USD/CAD - Last: 1.0582

Resistance

1.0620

1.0660

Support

1.0560

1.0500

1.0440