UFXBank Daily News: Canada’s Q1 GDP Growth at Fastest Pace in a Year

Posted by admin on May 31, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – The dollar fell versus most of the major currencies of forex trading on speculation that the U.S. economic recovery is slowing. We can see evidence for that in recent US macroeconomic indicators. In addition, Employers probably hired fewer workers in May and manufacturing cooled as the jump in fuel costs and the effects of Japan’s earthquake rippled through the U.S. The employment data expected to be released this week will be the key to really see “what’s happening” in the U.S. The currency markets traded amid a lack of volume and interest due to the Memorial Day holiday in the US. Crude oil fell by 0.40%, closing at $100.30 a barrel. Oil dropped on speculation that fuel demand will falter amid a slowdown in the U.S. economic recovery and Europe’s continuing debt crisis. Gold (XAU) rose 0.20% and closed at $1,538 an ounce, sustained by its safe-haven role amid continuing debt woes in the euro zone. Today, CB Consumer Confidence is expected to rise to 66.30 vs. 65.40 previously and the Chicago PMI is expected to rise to 63.80 vs. 67.60 previously.

Euro (EUR) – The euro strengthened against the U.S Dollar on speculation that Germany may drop its plan to demand an early rescheduling of bonds for Greece. In addition, the head of the euro-area finance ministers’ group, said that European Union leaders will decide on additional aid for Greece by the end of June and have ruled out a “total restructuring” of the nation’s debt. Trading above the support level of 1.4320 will keep the momentum positive to for the pair, but if the pair remains below this support level, it might fall to 1.4100. Overall, EUR/USD traded with a low of 1.4067 and with a high of 1.4351. Today, German Retail Sales m/m data is expected to grow by 1.70% vs. -2.70% previously and the CPI Flash Estimate is expected to show a growth of 2.80%, as it was previously.

EUR/USD – Last: 1.4380

Resistance	1.4420	1.4500	1.4550
Support	1.4320	1.4280	1.4220

British Pound (GBP) – The Pound strengthened against the Greenback due to the US Dollar’s weakness, despite the fact that UK banks were closed today in observance of the Spring Bank Holiday. The trend for the pair is bullish if the pair is able to maintain its support level of 1.6450. Overall, GBP/USD traded with a low of 1.6057 and with a high of 1.6511. Today, no economic data is expected.

GBP/USD – Last: 1.6540

Resistance	1.6550	1.6620	1.6650
Support	1.6500	1.6440	1.6400

Japanese Yen (JPY) – The dollar strengthened against the yen after it gathered enough momentum to break above the resistance level of 81.00 earlier today. The trend for the pair is bullish. If the pair succeeds in maintaining its support of 81.00, it may bring the pair to 81.80, its next resistance level. Today, Bank of Japan Governor, Shirakawa is expected to Speak.

USD/JPY-Last: 81.20

Resistance	81.50	81.80	82.50
Support	81.00	80.70	80.20

Canadian dollar (CAD) – The Canadian Dollar strengthened against its U.S. counterpart as a result of Canada’s first-quarter GDP growth having accelerated to the fastest pace in a year. Outlays by businesses increased while consumer and government spending stalled. In addition, policymakers will meet today to set the interest rate, which is expected to stay unchanged at 1.00% and the Bank of Canada will release a statement.

USD/CAD – Last: 0.9735