Forex Daily News: August 31, 2010 – GBP Down On Bank’s Day Off

Posted by admin on August 31, 2010 under forex market | Be the First to Comment

USD Dollar (USD) – The Dollar rose versus most major counterparts as U.S. stocks dropped, fueling demand for safer assets. The Core PCE Price Index came out unchanged at 0.1% as expected, while the Personal Spending report came out 0.4% better than the expected 0.3%. NASDAQ and Dow Jones declined by -1.56% and -1.39% respectively. Crude Oil dropped by -0.6%, closing near $74 a barrel. Gold (XAU) traded almost unchanged and closed at $1236.50 an ounce. Today, the Chicago PMI is expected at 57.5 vs. 62.3 previously. The CB Consumer Confidence is expected at 50 vs. 50.4 previously and later THE FOMC Meeting Minutes is expected.

EURO (EUR) – The Euro has lost a ground in Forex Trading, after rising on the last 3 trading days versus the Dollar and fell back to trade below the 1.27 area. Breaking the 1.2670 support level might push the pair lower. Overall, EUR/USD traded with a low of 1.2633 and with a high of 1.2771. Today, the German Unemployment Change is expected at -19k vs. -20k previously. The Preliminary CPI is expected at 1.6% vs. 1.7% previously. The Unemployment Rate is expected unchanged at 10%.

EUR/USD – Last: 1.2650

Resistance	1.2680	1.2790	1.2830
Support	1.2600

British Pound (GBP) – The Pound declined versus the Dollar as the UK banks were closed and as a main trend, investors favored risk aversion by buying the US Dollar. Breaking the 1.5480 support level might push the pair lower. Overall, GBP/USD traded with a low of 1.5452 and with a high of 1.5574. Today, the Net lending to individuals is expected at 0.7B vs. 0.6B previously.

GBP/USD – Last: 1.5455

Resistance	1.5480	1.5510	1.5540
Support	1.5440	1.5380

Japanese Yen (JPY) – The Yen rose across the board on speculation that the Bank of Japan’s stimulus plan is not enough to weaken the Japanese currency. The Prelim Industrial Production came out 0.3% better than the expected -0.3%. Retail Sales came out 0.3% worse than an expected 3.1%. Breaking the 84.50 support level might push the pair lower. Overall, USD/JPY traded with a low of 84.47 and with a high of 85.89. No economic data expected is today.

USD/JPY-Last: 84.29

Resistance	84.50	84.90	85.30
Support	83.80

Canadian dollar (CAD) – The U.S Dollar gained versus the Canadian dollar on weaker than forecast economic data, which added to evidence that the nation’s recovery has slowed. The Current Account came out -11B, worse than an expected -10.2B. Breaching the 1.0660 resistance level might bring the pair to fresh highs. Overall, USD/CAD traded with a low of 1.0470 and with a high of 1.0609. Today, the GDP is expected at 0.2% vs. 0.1% previously.

USD/CAD – Last: 1.0599