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UFXBank Forex Outlook: USD Falls below 15 Year Low vs. Yen

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar fell against most of the major currencies and reached a 10 month low before reports likely to fuel speculation the Federal Reserve will ease policy further to support prices, but during the day it rose again and closed around the open rate. The trade balance came out (-46.40B) worse than expected( -44.50B) and the initial jobless claim came out (462.00K) worse than expected (449.00K) .The trend is against a weak Dollar, the  NASDAQ  fell by (-0.24%) and Dow Jones by (-0.01%) and ,crude oil decreased  by 0.5%, closing at 82.69$ a barrel, Gold (XAU) increased by 0.6% , closing at 1378.0$ an ounce. Today, the core CPI is expected at (0.10%) vs. 0.00% previously and the core retail sales is expected at (040%) vs. (0.60%) previously and the CPI is expected at (0.20%) vs. (0.30%) last time and the retail sales is expected unchanged and the Fed Chairman Bernanke Speak.

Euro (EUR) – The Euro strengthened against the Dollar in Forex trading and reached the higher rate since January and broke the 1.4000 resistance by more than 100 pips, The momentum of the EUR/USD is still strongly bullish as long as it is above 1.4000. Overall, EUR/USD traded with a low of 1.3980 and with a high of 1.4122. Today, the CPI is expected unchanged at 1.80% and also the Core CPI is expected unchanged at 1.00%.

EUR/USD – Last: 1.4039

Resistance

1.4123

Support

1.4000

1.3910

British Pound (GBP) – The Pound continued to rise against the Dollar after the weakened of the greenback last night and broke the strong resistance level at 1.6000 and hit the 1.6067 after 8 months. But the pair returned quickly to 1.6000. The GBP/USD on the daily chart is still facing the resistance around 1.6000, the momentum is bullish as long as the GBP/USD higher than 1.6000. Overall, GBP/USD traded at a low of 1.5932 and a high of 1.6067. Today, no economic data is expected.

GBP/USD - Last: 1.6009

Resistance

1.6065

Support

1.5969

1.5954

1.5928

Japanese Yen (JPY) –The Yen strengthened against the Dollar and sets fresh 15 years low at 80.88.as the American market continues to weaken, but later on it closed around the open rate. The momentum is still bearish as long as the USD/JPY remains below 81.75 Overall, USD/JPY traded with a low of 80.89 and with a high of 81.72. Today, BoJ Governor Shirakawa will speak at an annual meeting of Japanese credit unions at 3 p.m. in Tokyo.

USD/JPY-Last: 81.30

Resistance

81.34

81.67

82.35

Support

80.87

Canadian dollar (CAD) – The Canadian Dollar fell versus the Dollar after it reaches parity between the pair during the day. The trade balance came out (-1.40B) better than expected (-2.10B) . The momentum of the USD/CAD is still negative for the US Dollar, but the pair is facing a strong support at 1.000 levels on the daily chart. As long the USD/CAD below 1.0100 a short position is preferred. Overall, USD/CAD traded with a low of 0.9980 and with a high of 1.0074.Today, Manufacturing Sales is expected at (0.50%) vs. (-0.90%) previously.

USD/CAD - Last: 1.0049

Resistance

1.0070

1.0120

Support

1.0000

0.9978