UFXBank Daily News: Low Liquidity Causes Mixed Dollar

Posted by admin on December 29, 2010 under forex market | Be the First to Comment

USD Dollar (USD) – The Dollar traded mixed against the major currencies on a volatile session caused by low liquidity. The CB Consumer Confidence came out at 52.5, worse than the expected 56.1. The Stock Markets in the U.S. closed almost unchanged as the Dow Jones advanced by 0.18% and the NASDAQ fell by -0.16%. Crude Oil is still fluctuating around $91 a barrel for the third consecutive day. Gold (XAU) soared by 1.6% and closed at $1405 an ounce. No economic data is expected today.

Euro (EUR) – The Euro unexpectedly reversed in Forex trading against the dollar after it reached the resistance area at 1.3270 and then proceeded to fall below 1.31 zones. Only breaking the 1.3070 support area will extend the decline in the pair, otherwise a rebound back to 1.32 zones is possible. Overall, EUR/USD traded with a low of 1.3083 and with a high of 1.3274. Today, the M3 Money Supply is expected at 1.6% vs. 1% previously.

EUR/USD – Last: 1.3127

Resistance	1.3200	1.3270	1.3370
Support	1.3070

British Pound (GBP) – The Pound is once again struggling with the 1.54 area after it jumped during the day to 1.55 zones. Only breaking the 1.5340 support area will extend the decline in the pair, otherwise a rebound back to 1.55 zones is possible. Overall, GBP/USD traded with a low of 1.5343 and with a high of 1.5520. Today, The Housing Equity Withdrawal is expected at -5.5B vs. -6.2B previously.

GBP/USD – Last: 1.5403

Resistance	1.5490	1.5570	1.5640
Support	1.5350

Japanese Yen (JPY) – The Yen posted gains versus the dollar after U.S economic data showed a halted economic recovery. Holding below the key resistance level of 82.50 keeps the momentum negative for the pair. Overall, USD/JPY traded with a low of 81.80 and with a high of 82.83. No economic data is expected today.

USD/JPY-Last: 82.29

Resistance	82.50	83.40	84.40
Support	81.80

Canadian Dollar (CAD) – Canada’s dollar posted 5 consecutive days of strength vs. the U.S. dollar as currencies linked to commodity prices jumped following the Gold and Crude Oil prices. Only breaking the 0.9980 support area will extend the decline in the pair, otherwise a rebound back to 1.01 zones is possible. Overall, USD/CAD traded with a low of 0.9974 and with a high of 1.0070. No economic data is expected today.

USD/CAD – Last: 1.0050