Forex Daily News: Pound Rises vs. USD on US Jobs Data

Posted by admin on September 2, 2010 under forex market | Be the First to Comment

USD Dollar (USD) – The Dollar weakened against most major currencies in Forex Trading, after encouraging global data helped ease concerns over the global economic growth. In addition to this, the ADP report in US showed that employers in the U.S. cut only 10,000 jobs instead of the 20,000 that was forecast in August, and this in turn, boosted the stocks and commodities markets. NASDAQ and Dow Jones jumped by 2.97% and 2.54% respectively. Crude oil rose by 2.4%, closing at $73.91 a barrel. Gold (XAU) weakened by 0.2%, closing at $1248 an ounce. Today, Unemployment Claims are expected to rise a bit from 743K to 745K, Fed Chairman Bernanke will testify, and Pending Home Sales are expected at -1.3% vs. -2.6% prior.

EURO (EUR) – The Euro rallied against the Dollar, owing to good data from the US which supported buying higher assets around the world. Also, the Chinese Premier Wen Jiabao said that China and western countries should work together to enhance the world’s confidence in the euro and the European Union’s economy. This had positive effects on the Euro, as well. As long the rate is above 1.2800 levels, a long position is preferred and the momentum is bullish. Overall, EUR/USD traded with a low of 1.2662 and with a high of 1.2855. Today, there is an ECB Press Conference, where the Interest Rate Decision is expected to remain unchanged at 1.0%,

EUR/USD – Last: 1.2789

Resistance	1.2855
Support	1.2780	1.2700	1.2625

British Pound (GBP) – The Pound rose against the Dollar after a report by ADP Employer Services showed U.S. companies cut only 10,000 jobs last month, leading investors to be optimistic and to buy the British currency. The GBP/USD has been trading downwards since the beginning of August, and is still trading below the 10 moving average on the daily chart. Therefore, the momentum is still bearish and the next support level on the one hour chart is located at 1.5400. Overall, GBP/USD traded with a low of 1.5336 and with a high of 1.5491. Today, Nationwide HPI is expected at -0.3% vs. -0.5% prior.

GBP/USD – Last: 1.5435

Resistance	1.5490	1.5590
Support	1.5395	1.5325

Japanese Yen (JPY) –The Yen fell against most of its major currencies as reports showed manufacturing in the U.S. and China accelerated, spurring demand for higher yielding assets like stocks and commodities. The momentum of the USD/JPY is bearish and the next support on the daily chart is located at 83.50. Therefore, a short position is preferred. Overall, USD/JPY traded with a low of 83.66 and with a high of 84.66. No economic data is expected today.

USD/JPY-Last: 84.17

Resistance	84.60	85.45	85.90
Support	83.80	83.65

Canadian dollar (CAD) – The Canadian Dollar strengthened for the first time this week versus the US Dollar as global equities and commodities such as crude oil strengthened, making currencies tied to growth more attractive. As long the USD/CAD is below 1.0550 levels a short position is preferred. The next support on the daily chart is located at 1.0480, and if the price crosses this level, the trend will continue to be bearish. Overall, USD/CAD traded with a low of 1.0484 and with a high of 1.0652. No economic data is expected today.

USD/CAD – Last: 1.0543