UFX Bank Daily News: USD Crushed Across the Board

Posted by admin on July 25, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – In forex trading, the dollar was crushed across the board last Friday as optimism among investors grew on an agreement in Europe to deal with the region’s debt crisis, which made riskier assets more attractive. With the opening of the Asian markets last night, the dollar strengthened against the majors. The Stock Markets in the U.S. closed mixed as the Dow Jones fell by 0.34% and the NASDAQ gained 0.86%. Crude oil touched the $100 area, but retraced and closed at $99.87 a barrel, posting a 0.8% advance. Gold (XAU) reached a new high at $1623 per ounce. No economic data is expected today.

Euro (EUR) – The Euro rose against the U.S Dollar and closed at 1.4423 last Friday. With the opening of the Asian markets, the Euro fell by 100 pips to 1.4323 and back to the 1.4400 area. Further appreciation in the pair is possible if the resistance level of 1.4440 is breached, otherwise we might see a technical adjustment downwards towards 1.4280 zones. Overall, the EUR/USD traded with a low of 1.4323 and with a high of 1.4436. Today, no major economic data is expected.

EUR/USD – Last: 1.4381

Resistance	1.4440	1.4500
Support	1.4320	1.4270	1.4210

British Pound (GBP) – The Pound strengthened against the greenback for a third day on positive developments at the EU Summit, causing the pair to hit a 5 week highs after it finally breached the resistance level of 1.6170. Further appreciation in the pair is possible if the resistance level of 1.6370 is breached, otherwise we might see some technical adjustment downwards to 1.6280 zones. Overall, the GBP/USD traded with a low of 1.6263 and with a high of 1.6343. No economic data is expected today.

GBP/USD – Last: 1.6300

Resistance	1.6330	1.6375
Support	1.6270	1.6200	1.6160

Japanese Yen (JPY) – The yen advanced against the dollar to its highest level since March as no deal on raising the U.S. debt limit has been reached. Trading below the resistance level of 78.60 keeps the trend negative for the pair. Overall, the USD/JPY traded with a low of 78.11 and with a high of 78.72. No economic data is expected today.

USD/JPY-Last: 78.37

Resistance	78.50	78.70	78.90
Support	78.20	78.00

Canadian dollar (CAD) – Canada’s dollar rose, touching the strongest level against the greenback in more than three years, as investors took Canada’s statements to mean that the central bank may become more aggressive with interest-rate increases. The pair couldn’t break the support level of 0.9440 and rebounded to the 0.9500 area. Overall, the USD/CAD traded with a low of 0.9476 and with a high of 0.9518. Today, no major economic data is expected.

USD/CAD – Last: 0.9514