Forex Daily News: CAD Gaining

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar traded mixed versus the major currencies as better than expected economic data pushed investors to favor higher yielding currencies, but the dollar regained by the end of the day’s Forex trading. The Trade Balance came out -42.8B, better than the expected -47.2B, and the Initial Jobless Claims came out 451k better than the expected 470K. The Stock Markets in the U.S. closed positive, with the Dow Jones and NASDAQ rising by 0.27% and 0.33% respectively. Crude Oil jumped to $76 but soon after, fell and closed below $75 a barrel. Gold (XAU) fell by -1% and closed at $1243.40 an ounce. No major economic data is expected today.

EURO (EUR) – The Euro jumped to test the resistance level at 1.2770 areas after positive data on U.S. Jobless Claims came out better than expected. This eased concerns for the economic recovery, but could not hold gains and fell back below the 1.27 zone. The German CPI came out unchanged at 0%, as expected. The French NFP came out 0.1%, worse than the expected 0.2%. Breaking below the support level of 1.2670 turns the momentum to negative for the pair. Overall, EUR/USD traded with a low of 1.2663 and with a high of 1.2765. Today, the French Industrial Production is expected at 0.8% vs. -1.7% previously.

EUR/USD – Last: 1.2665







British Pound (GBP) – The Pound trimmed the previous day's gains and weakened against the dollar after it failed to breach the resistance area of 1.5480. The Trade Balance came out at -8.7B, worse than the expected -7.5B. The Interest Rate Decision came out unchanged at 0.5%, as expected. Holding above the support level of 1.5380 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5374 and with a high of 1.5476. Today, the PPI Input is expected at 0.2% vs. -1% previously.

GBP/USD - Last: 1.5407







Japanese Yen (JPY) – The USD/JPY pair was trading in a narrow range capped under the 84 level with a little favor to the dollar. The GDP came out unchanged at 0.4%, as expected. Breaching above the 84 level might turn the momentum to positive for the pair. Overall, USD/JPY traded with a low of 83.48 and with a high of 84.11. No economic data is expected today.

USD/JPY-Last: 84.09








Canadian dollar (CAD) – Canada's Dollar gained versus the U.S Dollar for a second day. It traded near the critical level of 1.0340. The Housing Starts came out at 183K, worse than the expected 185K. The Trade Balance came out at -2.7B, worse than the expected -0.8B. Holding below the 1.0340 resistance area might extend the gains for the pair, otherwise a rebound could be seen. Overall, USD/CAD traded with a low of 1.03 and with a high of 1.0393. Today, The Employment Change is expected at 23.9K vs. -9.3K previously. The Unemployment Rate is expected to remain unchanged at 8%.

USD/CAD - Last: 1.0337