UFXBank Daily News: CAD Drops to 7 Week Low vs USD

Posted by admin on February 23, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – The Dollar rose versus most of the other major currencies after better than expected data regarding consumer confidence came out at 70.4 vs. 65.1 forecast. In addition, escalating violence in Libya and in the Middle East caused investors to sell risky assets and drift towards the Dollar and commodity assets. The NASDAQ and Dow Jones fell sharply, weakening by 2.74% and 1.44% respectively. Crude oil continued to surge to a new two year record, owing to the situation in Libya and the New Zealand earthquake, crude orders strengthened by 8.3% and closed at $93.57 a barrel. Gold (XAU) strengthened by 0.9%, closing at $1401.10 an ounce. Today, Existing Home Sales are expected to weaken from 5.28M to 5.23M.

Euro (EUR) – The Euro declined a bit in forex trading against the Dollar after good data was released in the US and the situation in North Africa succeeded to support a stronger Dollar. The EUR/USD momentum is bullish as long as the rate is above 1.3600. If the pair breaks below this level, the Euro will probably decline to 1.3400. Overall, EUR/USD traded with a low of 1.3526 and with a high of 1.3704. Today, Industrial New Orders are expected to become negative from 2.10% to -0.80%, and ECB President Trichet Speaks.

EUR/USD – Last: 1.3691

Resistance	1.3716
Support	1.3645	1.3536	1.3462

British Pound (GBP) – The Pound weakened against the Dollar the most it has in almost a week as escalating political instability in the Middle East and North Africa boosted investor demand for safety assets. The GBP/USD’s support on the daily chart is located at 1.6100, and as long as the pair is trading below 1.6180, the Dollar is more attractive and probably will break the support level. Overall, GBP/USD traded with a low of 1.6101 and with a high of 1.6228. Today, the MPC Meeting Minutes will be released.

GBP/USD – Last: 1.6173

Resistance	1.6204	1.6265
Support	1.6132	1.6075

Japanese Yen (JPY) –The Yen rose against other major currencies on speculation that tensions in the Middle East and North Africa will worsen, boosting demand for the yen as a refuge. The USD/JPY has broken the support level at 83.00, and therefore the momentum becomes bearish for the US Dollar. As long as the rate is below 83.20, a short position is preferred. Overall, USD/JPY traded with a low of 82.57 and with a high of 83.42. No economic data is expected today.

USD/JPY-Last: 82.59

Resistance	82.87	83.26	83.53
Support	82.50

Canadian dollar (CAD) – The Canadian Dollar dropped the most in seven weeks against the Dollar as escalating violence in Libya reduced demand for assets related to global economic growth. In addition, retail sales came out worse than expected at -0.2% vs. 0.0% forecast. The USD/CAD’s resistance is located at 0.9925, and if the pair breaks above this level, the momentum becomes bullish. Overall, USD/CAD traded with a low of 0.9823 and with a high of 0.9918. No major economic data is expected today.

USD/CAD – Last: 0.9884