• Trade Now

UFXBank Forex Outlook: Euro Drops on Dollar's Big Day

Written by UFXBank Research Team
Rate this item
(0 votes)

USD Dollar (USD) – The Dollar gained against most of the majors in as China unexpectedly raised the interest rates out of concern that the global economic growth is spurring demand for safety currencies. Building permits came out 0.54M, worse than the expected 0.58M. Housing Starts came out 0.61M, better than the expected 0.59M. The Stock Markets in the U.S. closed negative with the Dow Jones losing -1.48% and the Nasdaq declined by -1.76%. Commodities tumbled with Crude Oil dropping by more than -4.3% and closing at $79.50 a barrel. Gold (XAU) plummeted by $40 to close at $1331 an ounce. Today, The Fed's Beige Book will come out.

Euro (EUR) – The Euro lost previous Forex trading gains versus the dollar, falling as much as 300 pips and momentarily breaking the 1.37, level but quickly jumping back to 1.375 zones. Overbought conditions lead investors to take profit. The German Zew Economic sentiment came out -7.2, worse than the expected -7, which also supported the weakness of the Euro. Trading below the 1.3780 resistance level keeps the momentum negative for the pair. Overall, EUR/USD traded with a low of 1.3696 and with a high of 1.4002. Today, the German PPI is expected at 0.2% vs. 0% previously.

EUR/USD – Last: 1.3773







British Pound (GBP) – The Pound collapsed versus the dollar as the Chinese rate hike triggered buying pressure for the dollar. CBI Industrial Trends Orders came out at -28 worse than the expected -19, which also supported the weakness of the Sterling. Trading below the 1.5770 resistance level keeps the momentum negative for the pair. Overall, GBP/USD traded at a low of 1.5649 and a high of 1.5935. Today, The MPC Meeting minutes are expected. The Public Sector Net Borrowing is expected at 14.2B vs. 15.3B previously.

GBP/USD - Last: 1.5727







Japanese Yen (JPY) – The Yen was among the strongest performers against most of the currencies but still no breakthrough was seen versus the dollar as it seemed capped in a range between the 80.90 support and 81.90 resistance boundaries. Breaking the boundary levels will take the pair to new trading levels. Overall, the USD/JPY traded at low of 80.84 and a high of 81.91. No economic data is expected today.

USD/JPY-Last: 81.35 







Canadian dollar (CAD) – The U.S. dollar gained against Canada's dollar for a fourth day as the BOC kept the interest rate unchanged at 1%, reducing its economic growth forecast. Commodities markets were crushed with Crude Oil losing more than -4%, which also supported the weakness of the Loonie. The USD/CAD pair seems to be on a bullish trend as long as the pair remains above the 1.0220 support level. Overall, USD/CAD traded with a low of 1.0160 and with a high of 1.0372. Today, Wholesale Sales are expected at 0.5% vs. -0.1% previously and later, the BOC Monetary Policy Report will come out.

USD/CAD - Last: 1.0295








Add comment

Currency converter


Which is the Best Forex Broker you have traded with?

Interview with Matthew Sheppard

Senior Forex Advisor at XForex

1. What is your name and position?

Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?

In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

3. What type of clients you deal with?

We deal with clients on all levels from the beginning stages to the more advanced trading levels.

4. Does most of your business activity come from the online or offline world?

Because of our high presence on the web, most of our business comes from the online world.

5. Why should a trader pick XForex from all forex brokers?

Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..

Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?

My advice to the beginning trader entering the Forex world is as follows:
  • Learn the market and understand what you’re getting into.
  • Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
  • Invest smartly and calculate your risks.
  • Always know when to get out of a trade.

Broker of the Month

5_small_logoUFXBank provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXBank traders can access the biggest market in the world 24 hours a day with ease.

By keeping their platform, site and deposit process simple, safe and secure, UFXBank have become the web’s premier online forex trader.