UFXBank Daily News: Black Gold Falls for 3rd Day, by 2.90%

Posted by admin on September 6, 2011 under forex market | Be the First to Comment

USD Dollar (USD) – In forex trading, the dollar strengthened against most of the major currencies due to U.S. growth and euro-zone debt concerns which continue to overshadow the markets, spurring demand for the world’s reserve currency. In addition, Payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was less than initially estimated. This is further evidence that the economy is very close to stalling, if it isn’t already. Therefore, President Barack Obama said in a speech marking the U.S. Labor Day holiday that spending to rebuild the nation’s infrastructure is a key component of his plan to reignite the economy and boost hiring. Obama’s speech most likely covered his jobs agenda which he’ll unveil in a speech to Congress on Sept. 8 and will include proposals that previously have had support from both parties. The Stock Markets were closed yesterday due to the Labor Day holiday. Crude oil fell for a third day by 2.90% and closed at $83.30 a barrel on concern that slowing economic growth in the U.S. and China will crimp fuel consumption in the world’s two biggest crude users. Gold (XAU) rose by 0.90%, closing at $1,902 an ounce as concern about a global economic slowdown and Europe’s debt woes will worsen, boosting demand for safe haven assets. Today, the ISM Non-Manufacturing PMI is expected to be 51.20 vs. 52.70 previously.

Euro (EUR) – The euro fell for a fifth day against the U.S Dollar on concern that Europe’s debt woes will worsen. 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 1.4180 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 1.4059 and with a high of 1.4314. Today, the German Factory Orders are expected to decline by -1.40% vs. 1.80% previously.

EUR/USD – Last: 1.4070

Resistance	1.4100	1.4180	1.4250
Support	1.4050	1.4000	1.3900

British Pound (GBP) – The Pound fell to a seven-week low against the greenback after the Services PMI declined, boosting the case for more economic stimulus measures. The trend for the pair remains bearish if the pair maintains its resistance level of 1.6200 but if the pair breaks that resistance it may reach 1.6320. Overall, the GBP/USD traded with a low of 1.6060 and with a high of 1.6253. Today, no economic data is expected.

GBP/USD – Last: 1.6100

Resistance	1.6150	1.6200	1.6250
Support	1.6060	1.6000	1.5950

Japanese Yen (JPY) – The US Dollar strengthened a bit against the Yen after Minister Jun Azumi said earlier this week on public broadcaster NHK’s “Sunday Debate” program that Japan will take decisive action against speculative moves in the foreign exchange markets, if needed. Technically, the pair remains limited below the 77.00 resistance area. If the 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: 76.80

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. The currency which is linked to commodities lost ground for the past week as risk aversion has been the theme of the day amid weak stocks, mounting the euro zone concerns and low volume due to the US Labor Day holiday. The trend for the pair will continue to be bullish if the pair will maintain the support level of 0.9840. Today, no economic data is expected.

USD/CAD – Last: 0.9905