UFXBank Daily News: CAD Rises as Oil Jumps

Posted by admin on June 29, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – The dollar declined in forex trading against most of the major currencies for the second day in a row amid demand for higher-yielding assets. In addition, high optimism that European nations will take action to prevent a Greek default didn’t provide investors a good reason to buy the US Dollar. There is high concern that sometime in the first half of August there will be a lack of funding available for the Departments of Veterans Affairs, Education, and Housing and Urban Development. In addition, there could also be a lack of funding for unemployment insurance and Internal Revenue Service refunds, which combined pose the next great risk for the strength of the US economy. The Stock Markets closed positive as the Dow Jones rose by 1.21% and the NASDAQ gained 1.53%. Crude oil strengthened by 2.08% and closed at $93.00 a barrel on news that Greek creditors may be able to reach an agreement that will prevent a default. In addition, U.S. crude inventories likely fell 1.5M barrels. Gold (XAU) strengthened by 0.10% and closed at $1,501 an ounce, as a weaker dollar spurred demand for the metal as an alternative investment. Today, Pending Home Sales m/m are expected to rise by 2.4% vs. -11.60% previously and FOMC Member, Raskin is expected to Speak.

Euro (EUR) – The euro strengthened against the U.S Dollar for the second day on speculation that Greece’s parliament will approve an austerity package needed to ensure more financial aid. Greek lawmakers will vote today on the austerity package and vote later on a measure to implement it. Trading above the support level of 1.4300 will keep the momentum bullish for the pair, but if the pair breaks below this support level, it might reach 1.4100 again. Overall, EUR/USD traded with a low of 1.4115 and with a high of 1.4441. Today, the Greek Government will vote on how to handle the debt crisis.

EUR/USD – Last: 1.4350

Resistance	1.4380	1.4400	1.4480
Support	1.4300	1.4250	1.4200

British Pound (GBP) – The Pound strengthened against the Greenback due to an all around weaker dollar, despite high concerns over the U.K. economic outlook. In addition, the currency stayed lower after a government report showed Britain’s current-account gap narrowed less than economists estimated. 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, Net Lending to Individuals m/m is expected to rise by 1.2B as it was previously.

GBP/USD – Last: 1.5990

Resistance	1.6020	1.6050	1.6150
Support	1.5960	1.5890	1.5700

Japanese Yen (JPY) – The dollar strengthened against the Yen as U.S. Treasury yields jumped. If the pair succeeds to break its resistance of 81.20, it may bring the pair to 82.50, the next resistance level. Today, no economic data is expected.

USD/JPY-Last: 81.05

Resistance	81.20	81.80	82.50
Support	81.00	80.80	80.20

Canadian dollar (CAD) – The Canadian Dollar strengthened against its U.S. counterpart for the second day, after global stocks and raw material (including crude oil) rose on speculation that Greece will adopt an austerity package to avoid default. The trend seems to be bearish and the pair may test its support of 0.9820. Today, the Core CPI m/m is expected to grow by 0.20% as it did before.

USD/CAD – Last: 0.9810