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Forex Daily News: August 27, 2010 - German Data Boosts Euro

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar weakened against the majors for the second day in a row as an improvement in the market pushed the investors towards riskier assets. The Initial Jobless Claims came out 473K better than the expected 485K. NASDAQ and Dow Jones fell by -1.07% and -0.74%, respectively, after a positive opening. Crude Oil closed positive for a second day at $73.07 a barrel. Gold (XAU) fell from its high level and closed at $1237 an ounce. Today, the Prelim GDP is expected at 1.4% vs. 2.4% previously. The Michigan Consumer Sentiment Index is expected at 69.4 vs. 69.6 previously.

EURO (EUR) – The Euro advanced against the dollar in Forex Trading and managed to close above the 1.27 area. The Gfk German Consumer Climate came out 4.1 unchanged as expected. Holding above the support level of 1.2670 keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.2647 and with a high of 1.2764. Today, the German Prelim CPI is expected at 0.2% vs. 0.3% previously.

EUR/USD – Last: 1.2713

Resistance

1.2740

1.2790

Support

1.2680

1.26

British Pound (GBP) – The Pound gained against the dollar as the CBI DTS data came out 35 much better than the expected 25. Holding above the support level of 1.5485 will keep the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5452 and with a high of 1.5595. Today, the GDP is expected unchanged at 1.1%. The Prelim Business Investment is expected at 2.3% vs. 7.8% previously.

GBP/USD - Last: 1.5520

Resistance

1.5540

1.5600

Support

1.5510

1.5480

1.5380

Japanese Yen (JPY) – The Yen traded almost unchanged versus the dollar in a narrow range with small gains. A demand for the safety currency of Japan is still required for investors, as there is still concern on slowing U.S economic growth. The Tokyo Core CPI came out -1.1% better than the expected -1.2%. Range trading between the 84 - 85 levels is possible till further economic developments. Overall, USD/JPY traded with a low of 84.26 and with a high of 84.87. No economic data is expected today.

USD/JPY-Last: 84.46

Resistance

84.90

85.40

Support

83.80

Canadian dollar (CAD) – Canada’s dollar gained for a second day versus the U.S dollar as it fell against the majors. Canada's currency was also supported by a rise in commodities as crude oil rose. Holding below the 1.0660 resistance level, might push the pair downwards. Overall, USD/CAD traded with a low of 1.0519 and with a high of 1.0604. No economic data expected today.

USD/CAD - Last: 1.0577

Resistance

1.0620

1.0660

Support

1.0535

1.0500

1.0440