Forex Daily News: July 30, 2010 – US GDP Data Indicates Slowing

Posted by admin on July 30, 2010 under forex market | Be the First to Comment

USD Dollar (USD) – The Dollar weakened against other major currencies in Forex Trading as data showing a drop in jobless claims (457K vs. 468K prior), failed to offset fears over a slowdown in U.S. economic growth. The NASDAQ and Dow Jones declined by 0.57% and 0.29% respectively, while crude oil rose by 1.8% closing at $78.30 a barrel, and Gold (XAU) strengthened by 0.7% to close at $1168.40 an ounce. Today, Advanced GDP is expected at 2.5% vs. 2.7% prior, Chicago PMI is expected to weaken from 59.1 to 56.1, and the Michigan Consumer Sentiment Index is expected at 67.5 vs. 66.5 prior.

EURO (EUR) – The Euro climbed to its highest point in almost three months as European confidence in the economic outlook rose to the highest levels in more than a year this month, evidence the European economy is recovering. The trend of the EUR/USD is clearly bullish since June, the main support on the one hour chart is located at 1.2970, as long as it trades above this level, a long position is preferred. Overall, EUR/USD traded with a low of 1.2977 and with a high of 1.3107. Today, the unemployment rate is expected to remain at 10.0%, German Retail Sales are expected to be 0.0% vs. 0.4%.

EUR/USD – Last: 1.3058

Resistance	1.3107
Support	1.3045	1.2950	1.2890

British Pound (GBP) – The Pound succeeded to close unchanged versus the Dollar after U.K. house prices fell in July for the first time in five months on tighter lending conditions and concerns that government cuts will slow economic growth. The Nationwide HPI came out at -0.5% vs. -0.2% forecast. GfK Consumer Confidence came out at -22 vs. -21 forecast. The main resistance of the GBP/USD on the daily chart is 1.5650, if the price trades above this level the momentum continue to be bullish, the next support on the one hour chart is 1.5520. Overall, GBP/USD traded with a low of 1.5579 and with a high of 1.5662. No economic data expected today.

GBP/USD – Last: 1.5607

Resistance	1.5660
Support	1.5545	1.5440	1.5350

Japanese Yen (JPY) –The Yen rose for a second day against the Dollar, as signs the global recovery is slowing, boosted demand for Japan’s currency as a refuge. Tokyo Core CPI came out at -1.3% vs. -1.2% forecast .The main resistance of the USD/JPY on the daily chart is 88.25 level ,as long it’s trading below this level a short position is preferred, the next support is located at 86.20, the main momentum is clearly bearish. Overall, USD/JPY traded with a low of 86.57 and with a high of 87.45. No major news is expected today.

USD/JPY-Last: 86.32

Resistance	86.85	87.20	87.70
Support	86.25

Canadian dollar (CAD) – The Canadian Dollar advanced for the first time in three days against the Dollar as oil, the nation’s largest export, gained nicely, and other commodities which rose during the US sessions, succeeded to push the Loonie up. As long the USD/CAD are below 1.0450 levels the momentum is bearish, the next support on the daily chart is located at 1.0240. Overall, USD/CAD traded with a low of 1.0303 and with a high of 1.0392. Today, GDP is expected at 0.1% vs. 0.0% prior.

USD/CAD – Last: 1.0360