UFXBank Daily News: Canadian Dollar appreciates to highest level since Nov 2007

Posted by admin on July 27, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – In forex trading, the dollar slumped against most of the major currencies before the U.S. House of Representatives vote on a plan to cut government spending in exchange for raising the debt ceiling. The CB Consumer Confidence report came out at 59.50, better than the expected 56.00 and New Home Sales came out at 312K, worse than the expected 320K. The Stock Markets in the U.S. closed negative as the Dow Jones fell by 0.73% and the NASDAQ fell by 0.10%. Crude oil rose by 0.4% and closed at $99.15 a barrel. Gold (XAU) advanced by 0.30% and closed at $1,616.80 an ounce. Today, the Core Durable Goods Orders are expected at 0.50% vs. 0.70% previously, and Crude Oil Inventories are expected at -1.30M vs. -3.70M previously.

Euro (EUR) – The Euro rose against the U.S. Dollar and remained around the 1.4500 area. As long as the pair trades above the 1.4480 level, the momentum for the pair is bullish towards the 1.4700 zones. Overall, the EUR/USD traded with a low of 1.4356 and with a high of 1.4535. Today, the German CPI is expected at 0.30% vs. 0.10% previously.

EUR/USD – Last: 1.4505

Resistance	1.4535	1.4600	1.4700
Support	1.4480	1.4440	1.4200

British Pound (GBP) – The Pound strengthened against the greenback before the debt vote in the U.S. The GDP annual advanced reading showed an expected decline at 0.20%. Further appreciation for the pair is possible if the resistance level of 1.6370 is breached, otherwise we might see some technical adjustment down to 1.6280 zones. Overall, the GBP/USD traded with a low of 1.6265 and with a high of 1.6323. Today, the CBI Industrial Trends Orders are expected at -3.00 vs. 1.00 previously.

GBP/USD – Last: 1.6427

Resistance	1.6440	1.6500	1.6600
Support	1.6380	1.6300	1.6170

Japanese Yen (JPY) – The U.S. dollar fell against the Yen to the lowest level since the earthquake in Japan last March, as U.S. president Obama addressed the nation on the economy. Trading below the resistance level of 78.00 keeps the trend negative for the pair. Overall, the USD/JPY traded with a low of 77.77 and with a high of 78.68. No economic data is expected today.

USD/JPY-Last: 77.83

Resistance	78.00	78.20	78.45
Support	77.60	77.40	77.00

Canadian dollar (CAD) – Canada’s dollar appreciated to the highest level since November 2007 as the greenback declined against all of its most-traded counterparts on concern that the U.S. may fail to reach an agreement on raising its debt cap. The pair broke the support level of 0.9440 and held; if the rate remains below this support level, we can see the Canadian Dollar at 0.9350. Overall, the USD/CAD traded with a low of 0.9434 and with a high of 0.9474. Today, no major economic data is expected.

USD/CAD – Last: 0.9436