UFXBank Daily News: Gold Jumps by 3.20%, Closes at $1,885

Posted by admin on September 5, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – In forex trading, the US dollar strengthened against most of the major currencies on speculation that European nations will struggle to contain the region’s debt crisis. This spurred demand for the world’s reserve currency. In addition, Payrolls were unchanged last month, the weakest reading since September 2010, after a gain of 85,000 in July that was less than initially estimated. This is further evidence that the economy is very close to stalling if not having stalled. The US jobless rate held at 9.1% as American employers became less confident in the strength of an economic recovery. The present economic condition spurred President Barack Obama to make plans to address a joint session of Congress on Sept. 8 to unveil economic proposals, including tax breaks to spur hiring and more spending on infrastructure. The Stock markets closed negative as the Dow Jones fell by 2.20% and the NASDAQ lost 2.58%. The main reason is because of Friday’s poor economic data. Crude oil fell for a second day by 3.4%, closing at $88.90 a barrel on concern that the U.S. and Chinese economies are weakening, which indicates that fuel demand will falter in the world’s two biggest crude-consuming nations. Gold (XAU) jumped by 3.20%, closing at $1,885 an ounce as concern about a global economic slowdown boosted demand for a haven. Today, no economic data is expected due to the Labor Day holiday.

Euro (EUR) – The Euro fell to a three-week low against the U.S. Dollar on concern that European nations will struggle to contain the region’s debt crisis. In addition, an election loss for German Chancellor Angela Merkel’s party in her home state added to concern that the opposition is growing to bailouts for debt-saddled European nations. Trading below the resistance level of 1.4240 will keep the momentum negative for the pair, but if the pair breaks above this resistance level, it may reach the 1.4350 levels again. Overall, the EUR/USD traded with a low of 1.4135 and with a high of 1.4314. Today, the Retail Sales are expected to decline from 0.7% to 0.1%.

EUR/USD – Last: 1.4170

Resistance	1.4220	1.4250	1.4300
Support	1.4150	1.4110	1.4050

British Pound (GBP) – The Pound fell against the greenback after the pair didn’t succeed to break the resistance level at 1.6250. The trend for the pair remains bearish if the pair maintains its resistance level of 1.6250, but if the pair will breaks that resistance, it may reach 1.6320. Overall, the GBP/USD traded with a low of 1.6131 and with a high of 1.6253. Today, the Services PMI is expected to come out at 54.3 vs. 55.4 previously.

GBP/USD – Last: 1.6170

Resistance	1.6250	1.6290	1.6350
Support	1.6120	1.6080	1.6000

Japanese Yen (JPY) – The Dollar strengthened a bit against the Yen after Minister Jun Azumi said yesterday on public broadcaster NHK’s “Sunday Debate” program that Japan will take decisive action against speculative moves in the foreign- exchange markets if needed. If the USD/JPY pair succeeds to break the resistance level of 77.20 it may bring the pair to the 78.00 resistances once again. Today, no economic data is expected.

USD/JPY-Last: 76.70

Resistance	77.20	78.00	78.50
Support	76.30	75.90

Canadian dollar (CAD) – The Canadian Dollar fell against its U.S. counterpart on concern that the global economy may lapse into another recession, dimming prospects for the nation’s export of raw materials. The trend for the pair will continue to be bullish if the pair maintains the support level of 0.9840. Today, Canadian banks will be closed in observance of Labor Day.

USD/CAD – Last: 0.9870