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UFXBank Forex Outlook: Euro Weakens vs. Dollar

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar strengthened against most of the majors currencies in Forex trading. A positive economic forecast has published by the beige book earlier this week and effected on the Dollar for the last day. The Stock Markets in U.S. closed positive while the Dow increased by 0.35% and the Nasdaq rose by 0.09%. The Commodities weakened against the Dollar, Crude Oil by 2.4% closing at 80.56$ a barrel. Gold (XAU) decreased by 1.4% closing at 1,325 $ an ounce. Today, no economic data is expected.

Euro (EUR) – The Euro weakened against the Dollar although the manufacturing PMI came out 54.10 better than expected 53.20. The forecast of Deutsche Bank for the Dollar against the Euro   is clearly negative for the first quarter of the next year.  Expecting a bullish trend as long as the pair is above 1.3860. Overall, EUR/USD traded with a low of 1.3871 and with a high of 1.4050. Today, the German Ifo Business Climate Index is expected at 106.50 vs. 106.80 previously.

EUR/USD – Last: 1.3971

Resistance

1.3971

1.4050

Support

1.3894

1.3696

British Pound (GBP) – The Pound fell against the Dollar after the Retail Sales came out at        -0.20%   worse than expected 0.40%. Trading below 1.5780 resistance level will keep the momentum of the day negative for the pair. Overall, GBP/USD traded at a low of 1.5685 and a high of 1.5849. Today, no economic data is expected.

GBP/USD - Last: 1.5746

Resistance

1.5787

1.5869

1.5944

Support

1.5691

1.5650

Japanese Yen (JPY) – The yen fell against the dollar and had a strong brake from the dollar side, although the pair still traded close to the low of the 15 years. Trading below the resistance level 81.35 will return the momentum to be positive for the Yen. Overall the USD/JPY traded at low of 80.92 and a high of 81.82. No major economic data is expected today.

USD/JPY-Last: 81.14

Resistance

81.35

81.64

Support

80.12

80.83

 

Canadian dollars (CAD) – The loonie decreased against the green back by 0.6 percent to 1.0267  after the Leading Indicators came out -0.10% worse than expected 0.20% . The USD/CAD pair seems to be on a bullish trend as long as the pair remains above the 1.0225 support level on the 1 Hr chart. Overall, USD/CAD traded with a low of 1.0167 and with a high of 1.0302. Today, the Core CPI is expected at 0.30% vs. 0.10% previously and the Core Retail Sales is expected at 0.50% vs. -0.40% last time.

USD/CAD - Last: 1.0243 

Resistance

1.0298

1.0348

Support

1.0207

1.0168