UFXBank Daily News: CAD Nearing Parity Once Again

Posted by admin on December 28, 2010 under forex market | Be the First to Comment

USD Dollar (USD) – The Dollar slightly weakened against most of the major currencies during the opening of the Asian Forex trading session as a result of low liquidity in the markets. The Stock Markets in the U.S. closed almost unchanged as the Dow Jones fell by -0.16% and the NASDAQ advanced by 0.06%. Crude Oil is still fluctuating around $91 a barrel, while Gold (XAU) is holding above the $1380 an ounce. Today, CB Consumer Confidence is expected at 56.1 vs. 54.1 previously.

Euro (EUR) – The euro gained versus the dollar, hitting 7 day record, as it suddenly jumped 70 pips in a period of a few minutes after trading most of the day unchanged. Holding above the support level of 1.32 might push the pair higher to 1.34 areas. Overall, EUR/USD traded with a low of 1.3071 and with a high of 1.3250. No economic data is expected today.

EUR/USD – Last: 1.3240

Resistance	1.3280	1.3370
Support	1.3200	1.3070

British Pound (GBP) – The Pound gained versus the dollar after it spent most of the day struggling to hold the 1.54 support area, but the surge in the Euro also pushed the sterling to jump to 1.5480 levels. Holding above the support level of 1.54 might push the pair higher to 1.56 areas. Overall, GBP/USD traded with a low of 1.5368 and with a high of 1.5487. Today, UK banks will be closed in observance of Boxing Day.

GBP/USD – Last: 1.5478

Resistance	1.5490	1.5570	1.5640
Support	1.5380

Japanese Yen (JPY) – The Yen posted gains versus the dollar after China raised interest rates to restrain inflation, pushing investors towards a safety refuge. The Tokyo Core CPI came out unchanged at -0.4% as expected. Retail sales came out at 1.3%, better than the expected 0.4%. Breaking below the key support level of 82.50 turns the momentum to negative for the pair. Overall, USD/JPY traded with a low of 82.62 and with a high of 82.97. No economic data is expected today.

USD/JPY-Last: 82.50

Resistance	83.05	83.40	84.40
Support	82.40

Canadian Dollar (CAD) – Canada’s dollar posted 4 consecutive days of strength vs. the U.S. dollar as it approaches a key support level of the pair at 1.0020. Breaking that support level might push the pair below parity once again. Overall, USD/CAD traded with a low of 1.0049 and with a high of 1.0109. Today, Canadian banks will be closed in observance of Boxing Day.

USD/CAD – Last: 1.0050