UFXBank Daily News: Pound Strengthens Against Greenback

Posted by admin on June 28, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – The dollar declined in forex trading against most of the major currencies on speculation that Greece’s lawmakers will approve austerity measures. In addition, consumer spending unexpectedly stagnated in May as employment prospects dimmed and rising inflation caused Americans to cut back. The situation of persistent high unemployment, a weak housing market, high fuel prices and inflation, have all put pressure on consumers. The Stock Markets closed positive, breaking a three-day losing streak, as the Dow Jones rose by 0.91% and the NASDAQ gained 1.33%. Crude oil strengthened by 0.70%, closing at $91.20 a barrel, on news that Greek creditors may be able to reach an agreement that will prevent a default. Gold (XAU) fell by 0.10% and closed at $1,499 an ounce after reaching $1490 earlier today. Gold has declined over the last few days after capping the biggest weekly drop in seven weeks, as weaker oil prices and a pledge by European Union leaders to avert a Greek default, slashed the metal’s appeal as a safe haven. Today, CB Consumer Confidence is expected to show 60.80 as it was previously, and FOMC Member Fisher is expected to Speak.

Euro (EUR) – The euro strengthened against the U.S Dollar after three days of falling amid optimism Greece’s parliament will approve austerity measures to help avert the currency bloc’s first default later on this week. Greek Prime Minister, Papandreou called today on lawmakers to obey their “patriotic conscience” and back tougher austerity measures, as they began to debate a five-year budget plan that will determine whether the cash-strapped nation can avoid default. Trading above the support level of 1.4250 will keep the momentum bullish for the pair, but if the pair breaks below this support level, it might reach 1.4100 once again. Overall, EUR/USD traded with a low of 1.4115 and with a high of 1.4441. Today, ECB President Trichet is expected to speak.

EUR/USD – Last: 1.4300

Resistance	1.4350	1.4400	1.4480
Support	1.4250	1.4200	1.4100

British Pound (GBP) – The Pound strengthened against the Greenback after it didn’t succeed to break its strong support level of 1.5900, despite U.K. House Prices falling for a second month in June as growth in the supply of properties for sale outpaced demand. This data provides us a reminder that U.K. data is systematically disappointing at the moment. The trend for the pair remains bearish if the pair is able to maintain its resistance level of 1.6020. Overall, GBP/USD traded with a low of 1.5912 and with a high of 1.6262. Today, the Current Account is expected to fall by -5.0B vs. -10.5B previously, Final GDP q/q is expected to grow by 0.50% as it had previously, and the Inflation Report Hearings are expected to be released.

GBP/USD – Last: 1.5980

Resistance	1.6020	1.6050	1.6150
Support	1.5960	1.5890	1.5700

Japanese Yen (JPY) – The dollar traded unchanged against the yen after the pair didn’t succeed to break it resistance level of 81.00. If the pair succeeds in breaking its resistance of 80.80, it may bring the pair to 81.20, its next resistance level. Today, no economic data is expected.

USD/JPY-Last: 80.75

Resistance	81.00	81.20	81.80
Support	80.20	80.00	79.60

Canadian dollar (CAD) – The Canadian Dollar fell against its U.S. counterpart after touching the lowest level in more than three months, as U.S. stocks climbed and losses in commodities, such as crude oil, were tempered. The trend seems to be bearish and the pair may test its support of 0.9820. Today, no economic data is expected.

USD/CAD – Last: 0.9850