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Forex Daily News | Forex Articles | Forex Information
Wednesday, 27 October 2010 08:49

UFXBank Forex Outlook: Consumer Confidence Bodes Well for Dollar

USD Dollar (USD) – The Dollar strengthened versus most major currencies in Forex trading after U.S. consumer confidence rose more than expected in October, 50.2 vs. 49.3 forecast. This rise from a seven month low encourage investors to prefer the Dollar instead other assets. The NASDAQ and Dow Jones advanced by 0.26% and 0.05% respectively. Crude oil declined by 0.1%, closing at $82.55 a barrel and Gold (XAU) decreased by 0.1%, closing at $1338.60 an ounce. Today, Core Durable Goods Orders are expected to decline from 1.7% to 0.1%, and New Home Sales are expected at 295K vs. 288K prior.

Euro (EUR) – The Euro weakened against the Dollar for the first time in three days on speculation that an increase in debt purchases by the Federal Reserve will cause inflation to accelerate. The EUR/USD has been fluctuating around 1.3800 to 1.3900 levels during the past week, and therefore, the trend is not clear. Only if the pair crosses the 1.3950 line, will the Euro continue with its positive trend. Overall, EUR/USD traded with a low of 1.3825 and with a high of 1.3982. Today, German Prelim CPI is expected to rise from -0.10% to 0.10%.

EUR/USD – Last: 1.3811

Resistance

1.3878

1.3982

1.4080

Support

1.3750

1.3700

British Pound (GBP) – The Pound rose after the U.K. economy grew at double the pace economists had forecast for the third quarter, with GDP coming out at 0.8% vs. an expected 0.4%. The resistance of the GBP/USD on the one hour chart is 1.5900, and as long as the pair is trading below this level, the momentum is still negative for the pound. Overall, GBP/USD traded with a low of 1.5706 and with a high of 1.5896. No economic data is expected today.

GBP/USD - Last: 1.5822

Resistance

1.5900

1.5945

Support

1.5755

1.5685

1.5650

Japanese Yen (JPY) –The Yen slid from almost its strongest level in 15 years against the dollar amid concerns that Japanese authorities may renew action to weaken the currency. The USD/JPY has been trading around 81.00-81.50 area in the last few days and the main support line on the daily chart is located at 80.40. The momentum is still bearish as long as it‘s trading below the 10 moving average. Overall, USD/JPY traded with a low of 80.61 and with a high of 81.65. No economic data is expected today.

USD/JPY-Last: 81.74

Resistance

82.00

Support

81.30

80.80

80.45

Canadian dollar (CAD) – The Canadian Dollar weakened against the Dollar for the first time in three days as stocks and raw materials declined, reducing demand for currencies tied to economic growth. The support level of the USD/CAD on the daily chart is located at 1.0150, and if the USD/CAD breaks below this price level, a short position is preferred. Overall, USD/CAD traded with a low of 1.0181 and with a high of 1.0266. Today, BOC Gov Carney Speaks.

USD/CAD - Last: 1.0265

Resistance

1.0300

1.0355

Support

1.0210

1.0160

 

 

 

Published in Forex Articles
Tuesday, 26 October 2010 10:13

UFXBank Forex Outlook: Dollar Down Despite Good Home Sales

USD Dollar (USD) – The Dollar remained down against most of the major currencies despite home sales data being better the expected at 4.53M vs 4.25M forecast. The dollar continues to be in the shadow of the G20 summit, remaining weak against the majors in Forex trading. The NASDAQ and Dow Jones advanced by 0.46% and 0.28%, respectively. Crude oil gained 1%, closing at $82.52 a barrel, and Gold (XAU) increased by 1.1%, closing at $1340 an ounce. Today, CB Consumer Confidence is expected at 49.00 vs. 48.5 prior.

Euro (EUR) – The Euro strengthened against the dollar with Industrial New Orders exceeding expectation at 5.3% vs 2.1% prior, resulting in a stronger Euro. The last few days have seen the pair within a daily range, with a support of 1.3856 and a resistance of 1.4049. As long as the pair remains above levels of 1.3900, the trend will remain positive. Overall, EUR/USD traded with a low of 1.3935 and with a high of 1.4079. No economic data is expected today.

EUR/USD – Last: 1.39619

Resistance

1.3972 

1.4039 

1.4080 

Support

1.3907 

1.3856 

British Pound (GBP) – The Pound strengthened against the dollar despite the Mortgage Approvals coming out worse than expected at 31.1K vs. 31.6K forecast. The buyers outweighed the sellers in search for higher yielding assets in the GBP.  The momentum for the pound remains negative despite the pair’s efforts to break the daily moving average at around 1.5776. The trend continues to be bearish with a strong support of 1.5650. Overall, GBP/USD traded with a low of 1.5677 and with a high of 1.5772. Today, Prelim GDP q/q is expected 0.4% vs. 1.2% prior, and later on MPC Member Posen will speak.

GBP/USD - Last:  1.5731

Resistance

1.5749

1.5772

Support

1.5715

1.5689

Japanese Yen (JPY) –The Yen reached a 15 year high against the dollar. The dollar weakened against all the major currencies today, which only supported a stronger Yen.  The Yen continued to strengthen against the dollar for the sixth consecutive day and reached highs that were last seen in 1995. The trend on the pair is still bearish, although we might see some minor corrections. Overall, USD/JPY traded with a low of 80.40 and with a high of 81.32. No economic data is expected today.

USD/JPY-Last: 80.78

Resistance

80.83

80.90

Support

80.65

80.40

Canadian dollar (CAD) – The Canadian Dollar strengthened to reach a weekly high against the US dollar as a result of government reports last week that hinted about inflation and retail sales exceeding economist expectations. The strengthened commodities support a strong Canadian dollar. The USD/CAD broke its moving average and entered its second day of negative performance; the trend continues to be bearish below the level 1.0220. Overall, USD/CAD traded with a low of 1.0154 and with a high of 1.0258. Today, BOC Gov Carney Speaks.

USD/CAD - Last: 1.0199

Resistance

1.0208

1.0236

Support

1.0178

1.0162

1.0154

 

 

 

Published in Forex Articles
Monday, 25 October 2010 10:41

UFXBank Forex Outlook: Pound Drops vs Dollar

USD Dollar (USD) – The Dollar was mixed in Forex trading on Friday, as investors waited to see the outlook of the G20 summit, which vowed in the end to avoid weakening currencies to encourage exports. The NASDAQ advanced by 0.80% and the Dow Jones weakened   by 0.13%. Crude oil rose by 1.4%, closing at $81.69 a barrel. Gold (XAU) decreased by $0.50, closing at $1325 an ounce. Today, Fed Chairman Bernanke Speaks, and Existing Home Sales are expected to rise from 4.13M to 4.25M.

Euro (EUR) – The Euro rose against the Dollar after the Group of 20 finance ministers and central bankers vowed to refrain from weakening currencies to support exports. The EUR/USD has fluctuated around 1.3900 levels during the past week, and as long as it’s above 1.3900 levels, the momentum continues to be positive for the Euro. Overall, EUR/USD traded with a low of 1.3858 and with a high of 1.3972. Today, Industrial New Orders are expected at 2.1% vs. -2.0% prior.

EUR/USD – Last: 1.4033

Resistance

1.4050

1.4160

Support

1.3855

1.3700

British Pound (GBP) – The Pound traded its biggest weekly loss against the dollar since August. This comes on speculation that this weekend’s Group of 20 meeting in South Korea may result in an accord that will support the Dollar more than the pound. The trend of the GBP/USD on the daily chart has been bearish over the last few days, but still facing a support around 1.5600. Overall, GBP/USD traded with a low of 1.5651 and with a high of 1.5750. Today, BBA Mortgage Approvals are expected at 31.60K vs. 31.80K prior.

GBP/USD - Last: 1.5746

Resistance

1.5878

1.6000

1.6110

Support

1.5650

Japanese Yen (JPY) –The Yen closed almost unchanged against the Dollar after the resolutions of the G20. The USD/JPY has been trading around 81.00-81.50 area in the last few days. The main support line on the daily chart is located at 81.00 and the momentum is still bearish as long as it‘s trading below the 10 moving average. Overall, USD/JPY traded with a low of 80.99 and with a high of 81.50. No economic data is expected today.

USD/JPY-Last: 81.06

Resistance

81.50

82.00

Support

80.85

Canadian Dollar (CAD) – The Canadian Dollar fluctuated against the Dollar as the Bank of Canada signaled interest rate increases are on hold as the nation’s economic recovery may be weaker than expected. The support level of the USD/CAD on the daily chart is located at 1.0200, and if the USD/CAD breaks below this level, a short position is preferred. Overall, USD/CAD traded with a low of 1.0223 and with a high of 1.0302. No economic data is expected today.

USD/CAD - Last: 1.0210

Resistance

1.0300

1.0375

Support

1.0165

1.0090

1.0000

 

 

 

Published in Forex Articles
Friday, 22 October 2010 13:21

UFXBank Forex Outlook: Euro Weakens vs. Dollar

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

 

Published in Forex Articles
Thursday, 21 October 2010 09:06

UFXBank Forex Outlook: USD Can't Hold the Momentum

USD Dollar (USD) – The Dollar fell against most of the major currencies after the jump in the previous day’s Forex trading. A positive economic forecast was published today by the beige book. The Stock Markets in U.S. closed positive with the Dow increasing by 1.18% and the Nasdaq rose by 0.84%. Crude Oil rose 2.9%, closing at $81.77 a barrel, while Gold (XAU) increased by $8.20, to close at $1,344 an ounce. Today, Initial Jobless Claims are expected at 455k vs. 462k previously.

Euro (EUR) – The Euro rose versus the Dollar after the German PPI came out at 0.3%, better than the expected 0.2%. Trading above the 1.3700 support level keeps the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.3699 and with a high of 1.3991. Today, the manufacturing PMI is expected at 53.20 vs. 53.70 prior.

EUR/USD – Last: 1.3920

Resistance

1.3970

1.4101

Support

1.3792

1.3700

British Pound (GBP) – The Pound rose against the Dollar after U.K. Chancellor of the Exchequer George Osborne detailed his plan to almost eliminate the nation’s 156 billion pound ($246 billion) budget deficit. Trading below the 1.5870 resistance level keeps the momentum of the pair negative for the day. Overall, GBP/USD traded at a low of 1.5654 and a high of 1.5878. Today, Retail Sales are expected at 0.4% vs. -0.5% previously.

GBP/USD - Last: 1.5797

Resistance

1.5840

1.5878

1.5988

Support

1.5653

Japanese Yen (JPY) – The yen rose against the Dollar ahead of economic data that may add to the cause of more monetary easing by the Federal Reserve, which will debase the currency. Trading below the resistance level of 81.70 will keep the momentum positive for the Yen. Overall the USD/JPY traded at low of 80.84 and a high of 81.82. No major economic data is expected today.

USD/JPY-Last: 81.17

Resistance

81.28

81.70

82.12

Support

80.83


 

Canadian dollar (CAD) – The Canadian Dollar increased against the green back after the wholesale sales came out 1.2% better than the expected 0.5%. Commodities markets rose also against the U.S Dollar after the crash the day prior. The USD/CAD pair seems to be on a bullish trend as long as the pair remains above the 1.0200 support level on the daily chart. Overall, USD/CAD traded with a low of 1.0204 and with a high of 1.0347. Today, The Leading Indicators are expected at 0.2% vs. 0.5% previously.

USD/CAD - Last: 1.0250

Resistance

1.0279

1.0360

Support

1.0202

1.0137

 

Published in Forex Articles
Tuesday, 28 September 2010 09:10

UFXBank Forex Outlook: Calm Before the Storm?

USD Dollar (USD) – The Dollar traded with a narrow range and closed almost unchanged against most major currencies in Forex trading because of speculation that the Federal Reserve will take more steps to ease monetary policy, damping demand for U.S. assets. The NASDAQ and Dow Jones weakened by 0.48% and 0.44% respectively, while crude oil remained unchanged, closing at $76.50 a barrel. Gold (XAU) continued to rise, strengthening by 0.1%, and closing at $1298.60 an ounce. Today, CB Consumer Confidence is expected at 52.5 vs. 53.5 prior.

EURO (EUR) – The Euro weakened a bit from a five month high against the Dollar as renewed signs of debt problems at European banks and countries such as Ireland and Portugal reduced demand for assets in the European zone. The momentum of the EUR/USD is still strongly bullish for the euro, and as long as it’s above 1.3350 levels a long position is preferred. The next resistance line on the daily chart is at 1.3700, and the RSI indicator supports an uptrend as well. Overall, EUR/USD traded with a low of 1.3425 and with a high of 1.3506. Today, German Prelim CPI is expected to weak from 0.0% to -0.2%.

EUR/USD – Last: 1.3459

Resistance

1.3500

Support

1.3425

1.3285

1.3100

British Pound (GBP) – The Pound also stayed almost unchanged against the dollar after a quiet day of news and data from these countries. The main resistance of the GBP/USD on the daily chart is 1.6000, and the momentum is bullish as long as the price is above 1.5750. Overall, GBP/USD traded with a low of 1.5787 and with a high of 1.5867.  Today, Current Account is expected to remain at -9.60B, and Final GDP is expected to stay at 1.2%.

GBP/USD - Last: 1.5825

Resistance

1.5867

Support

1.5785

1.5600

1.5500

Japanese Yen (JPY) –The Yen traded with a very small range versus the Dollar after there was no important news that influenced this pair. The USD/JPY has been fluctuating around 84.50 over the last four days. The support on the one hour chart is at 84.20, and if the pair breaks below the support line, the trend will continue to decline. Overall, USD/JPY traded with a low of 84.11 and with a high of 84.37. No economic data is expected today.

USD/JPY-Last: 84.24

Resistance

84.40

84.70

85.40

Support

84.10

Canadian Dollar (CAD) – The Canadian Dollar fell from a near six week high versus the Dollar, as U.S. stocks and crude oil declined and investors speculated that the Bank of Canada Governor Mark Carney may be unwilling to raise interest rates further. The momentum of the USD/CAD is still negative for the US Dollar, and as long the USD/CAD is below 1.0400 levels, a short position is preferred. The next support on the daily chart is located at 1.0200. Overall, USD/CAD traded with a low of 1.0223 and with a high of 1.0305. No economic data is expected today.

USD/CAD - Last: 1.0291

Resistance

1.0345

1.0380

Support

1.0225

1.0190

Published in Forex Articles
Wednesday, 22 September 2010 09:26

UFXBank Forex Outlook: Dollar Down on Fed Statements

USD Dollar (USD) – The Dollar was down against the other major currencies after the Federal Reserve said it’s willing to ease monetary policy further to bolster the U.S. economy. In addition, the interest rate stayed at 0.25% and the Housing Starts data increased in august (0.60M vs. 0.55M forecast), easing concerns that the recovery in the world’s largest economy may be stumbling.  The NASDAQ weakened by 0.28% and the Dow Jones fluctuated around 0, closing at + 0.07%. Crude oil weakened by 1.8%, closing at $73.50 per barrel. Gold (XAU) rose to another new record during the session (above 1290$), dropping some by the end, but still strengthening by 0.4% to close at $1283 an ounce. No major economic data is expected today.

EURO (EUR) – The Euro strengthened to a six week high against the Dollar as a result of statements by members of the Federal Reserve's Open Market Committee. The momentum of the EUR/USD is still bullish for the euro, and as long it is above the 1.3100 level, a long position is preferred. The next resistance line on the daily chart is 1.3340, and the 10 moving average supports an uptrend as well. Overall, EUR/USD traded with a low of 1.3059 and with a high of 1.3286. Today, Industrial New Orders are expected to become negative from 2.5% prior to -1.20% forecast.

EUR/USD – Last: 1.3297

Resistance

1.3312

Support

1.3160

1.3030

1.2960

British Pound (GBP) – The Pound weakened versus the Dollar and Euro during the European Forex trading session, dropping against the Euro to the lowest level in two months, as a report showed the U.K.’s budget deficit widened more than forecast in August. At the end of the US session, the pound succeeded to rebound some versus the Dollar after the US Federal Reserve statements. The main support of the GBP/USD on the daily chart is still 1.5500, and if the pair goes below this rate, it will probably continue to decline. The resistance on the one hour chart is 1.5650, and if it goes above this line, it will continue to rise. Overall, the GBP/USD traded with a low of 1.5503 and with a high of 1.5644. Today, MPC Meeting Minutes will be released.

GBP/USD - Last: 1.5664

Resistance

1.5685

1.5730

Support

1.5600

1.5500

1.5430

Japanese Yen (JPY) –The Yen reached the strongest level against the Dollar since Sept. 15, as a result of the interest rate statement by U.S. Federal Reserve policy makers. The USD/JPY has been fluctuating the past few days. The support on the daily chart is 84.75, and if the pair goes below the support line, the trend will become bearish. Overall, USD/JPY traded with a low of 84.98 and with a high of 85.72. No economic data is expected today.

USD/JPY-Last: 84.87

Resistance

85.25

86.00

Support

84.70

Canadian dollar (CAD) – The Canadian Dollar rose against the US Dollar after the Federal Reserve said it is willing to ease monetary policy further to boost the economy, which increased demand for assets that benefit from global growth. The momentum of the USD/CAD is still negative for the US Dollar, and as long the USD/CAD below 1.0350 levels, a short position is preferred. The next support on the daily chart is located at 1.0200. Overall, USD/CAD traded with a low of 1.0216 and with a high of 1.0331. Today, Core Retail Sales are expected to rise from -0.5% to +0.4%, and the Leading Index is expected at 0.5% vs. 0.4% prior.

USD/CAD - Last: 1.0248

Resistance

1.0290

1.0320

1.0350

Support

1.0215

Published in Forex Articles
Monday, 20 September 2010 09:04

UFXBank Forex Outlook: Drop in Oil Drops Looney

USD Dollar (USD) – The Dollar strengthened against most of the other major currencies as a correction of the last few days. Core CPI came out at 0% vs. 0.10% forecast, and Michigan Inflation Expectations came out at 2.20% vs. 2.70% forecast. NASDAQ and Dow Jones continued their uptrend for the third week in a row, closing at +0.5% and +0.1% respectively. Crude oil weakened for the fourth day in a row, falling by 1.2%, to close at $73.66 a barrel. Gold (XAU) rose to a new record high of $1282, strengthening by 2.9% comparing to last week, but finally closing at $1279 an ounce. Today no major reports are expected.

EURO (EUR) – The Euro continued to stay near 1.3000 levels in Forex trading, as it did in last week’s advance versus the Dollar. This occurred as risk appetite waned amid fresh fears over the euro zone sovereign debt crisis. The momentum of the EUR/USD is still bullish for the euro, and as long it’s above 1.3000 levels, a long position is preferred. Also, the CCI indicator is above +100, which supports an uptrend as well. Overall, EUR/USD traded with a low of 1.3031 and with a high of 1.3067. No major economic data is expected today.

EUR/USD – Last: 1.3071

Resistance

1.3159

Support

1.3031

1.2959

1.2829

British Pound (GBP) – The Pound continued to stay near its strongest level versus the US dollar in more than a month. The main resistance of the GBP/USD on the daily chart is 1.57, and if the pair crosses this rate, it will continue its upward trend. If not, we could see the pair continue to decline to the 1.5580 level. Overall, GBP/USD traded with a low of 1.5592 and with a high of 1.5648. No major economic data is expected today.

GBP/USD - Last: 1.5664

Resistance

1.5729

Support

1.5594

1.5460

Japanese Yen (JPY) – The yen fluctuated near the 85.70 levels for a fourth day versus the dollar on speculation the U.S. housing market is stagnating, which is increasing demand for safer assets. The momentum of the USD/JPY is still strongly bullish these days, and the resistance on the daily chart is at 86. One thing to note is that there is a pennant shape forming. Overall, USD/JPY traded with a low of 85.593 and with a high of 85.929. No economic data is expected today due to a bank holiday.

USD/JPY-Last: 85.71

Resistance

85.93

Support

85.64

85.22

Canadian dollar (CAD) – The Canadian Dollar weakened against the US dollar as Oil fell more than 1% and drifted the Canadian Dollar along with it. The momentum of the USD/CAD is still negative for the US Dollar, and as long the USD/CAD is below 1.0400 levels, a short position is preferred. The next resistance on the one hour chart is located at 1.0350. Overall, USD/CAD traded with a low of 1.0216 and with a high of 1.0350. Wholesale Sales is expected to come in at 0.60% versus -0.30% prior.

USD/CAD - Last: 1.0312

Resistance

1.0347

Support

1.0309

1.0251

1.0216

Published in Forex Articles
Thursday, 16 September 2010 10:04

False Rebound

Against all expectations the Q2 GDP figures for the UK economy demonstrated a growth of a remarkable 1.1%, one of the highest figures found anywhere amongst the emerging economies. Whilst political parties on both sides of the House debated as to who should receive the credit for such a boost, the real results were being felt across the markets.

As the figures were released, unsurprisingly, sterling took a bounce against both the dollar and the euro. This hike wasn’t solely the result of the good GDP figures for the UK, but also on the back of fears that the stress-testing of euro banks would reveal that some banks weren’t quite up to scratch. These fears were later born out, and sterling looks set to rise further across the coming week.

Economic experts in the UK predicted rather gloomily that the 1.1% growth would be as a good as it gets, pointing to the growth provided by the building and construction sector as a one-off due to catching up on the backlog left behind after the particularly bad weather of the winter.

There is, however, another problem in the long run for the UK economy and that’s the fact that as long as it continues to perform well (or, more accurately, outperform the eurozone) sterling growing stronger is not actually going to be that much of an assistance to the recovery. The UK’s largest trading partner by far is Europe, and the government really needs a weaker pound against the euro to bring in extra trade to the UK and further drive the recovery.

Of course, on current evidence, that simply isn’t going to happen, or not for any time soon, leaving the UK without a major region to export to (a problem that isn’t unique to Britain by any stretch) and relying, to a certain extent, on exports to continue the boost in the economy. Whilst the services sector may continue to perform strongly, there are other places in the world to do business and that business is likely to gravitate away from the UK if it’s much cheaper to do it somewhere else.

So, sterling finds itself in between a rock and a hard place and some people are arguing that it would have been better to join the euro and be in the position of Germany, for example, which has seen exports within Europe increase rapidly over the last decade. Of course, a German bank failed the stress-tests as well, so there are further problems to be dealt with in the eurozone.

It is not an overstatement to say that the strength of sterling will dictate the strength and the extent of the recovery in the UK economy. Regardless of how you trade in the markets, whether it’s directly or through a spread betting company like CMC Markets, make sure you keep an eye on the comparative strength of sterling against the other major currencies, it is guaranteed to have an impact on your markets.

Published in Forex Guides
Thursday, 16 September 2010 08:47

Forex Daily News: GBP Making Moves on USD

USD Dollar (USD) – The Dollar weakened against most majors in Forex trading after US Industrial production fell more than expected in August (0.2% vs. 0.3% forecast vs. 0.6% in July). Additionally, the Empire State Manufacturing Index also fell more than expected (4.1 vs. 8.7 forecast) and other mixed data came out during the session, which supported negative sentiment for the Dollar. The NASDAQ and Dow Jones strengthened by 0.50% and 0.44% respectively. Crude oil decreased by 1.0% to close at $76 a barrel, and Gold (XAU) weakened by 0.2%,closing at $1268.70 an ounce. Today, Unemployment Claims are expected to rise from 451K to 463K, PPI is expected at 0.3% vs. 0.2% prior, Treasury Sec Geithner Speaks, and TIC Long-Term Purchases are expected to weaken from 44.4B to 37.9B.

EURO (EUR) – The Euro traded near a one month high against the Dollar amid speculation that the Federal Reserve will buy additional Treasury securities this year to help sustain growth as the economic recovery falters. The momentum of the EUR/USD has been bullish the past few days, and as long it's above 1.2950, the trend continues to be positive for the Euro. Overall, EUR/USD traded with a low of 1.2955 and with a high of 1.3037. Today, the Trade Balance is expected at -0.7B vs. -1.6B prior.

EUR/USD – Last: 1.2992

Resistance

1.3033

 

 

Support

1.2955

1.2891

1.2763

 

British Pound (GBP) – The Pound strengthened against the Dollar, rising to a 4 week high following a flurry of mixed U.S. economic data, which supports higher yielding assets. The main resistance of the GBP/USD on the daily chart is 1.5700, and if the price trades above this level, the momentum will continue to be bullish .Overall, GBP/USD traded with a low of 1.5448 and with a high of 1.5652. Today, Retail Sales are expected to weaken from 1.1% to 3.3%, and CBI Industrial Order Expectations are expected at -12 vs. -14 prior.

GBP/USD - Last: 1.5615

Resistance

1.5652

 

 

Support

1.5595

1.5500

1.5375

 

Japanese Yen (JPY) –The Yen weakened against all major currencies, falling to a 12 day low versus the Dollar. This came after Japan's government said it intervened in currency markets for the first time in 6 years in order to stem the Yen's sharp gains. The trend of the USD/JPY is opposite from downwards to upwards since yesterday, therefore a long position is preferred, and the next resistance on the daily chart is located at 86.50 levels. Overall, USD/JPY traded with a low of 82.87 and with a high of 85.77. No economic data is expected today.

USD/JPY-Last: 85.28

Resistance

85.77

 

 

Support

85.10

84.40

83.50

 

Canadian dollar (CAD) – The Canadian Dollar rose a bit versus the US Dollar after weaker than forecast manufacturing data was released in the U.S., renewing Canada’s concerns about the economy and its largest trading partner. As long the USD/CAD is below 1.0400 levels, a short position is preferred and the momentum is strongly bearish. The next support on the daily chart is at 1.0200. Overall, USD/CAD traded with a low of 1.0251 and with a high of 1.0320. No economic data is expected today.

USD/CAD - Last: 1.0274

Resistance

1.0320

1.0400

1.0500

Support

1.0220

 

 

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