USD Dollar (USD) – The U.S Dollar fluctuated against the major currencies after beginning the week plagued with a fast-growing sense of risk aversion. We can see now that as long as the unrest is confined to Egypt and ships keep moving through that canal, then the impact on currency prices will be minimal. The main concern is that we are going to see an expansion of this turmoil out of Egypt to other parts of the Middle East. The Reverse correlation may be returning due to the greenback’s weakness, although the financial markets and economic data were both positive. Crude Oil continued to rise to rate of $92.20 per barrel, but Gold (XAU) slid to a rate of $1332.50 an ounce. The Stock Markets in the U.S rose after good reports came out, as the Dow Jones rose by 0.58% and the NASDAQ rose by 0.49%. Consumer spending topped forecasts by showing the fastest expansion since July 1988. Today, ISM Manufacturing PMI is expected.
Euro (EUR) – The Euro rose against the U.S Dollar and managed to erase this past Friday’s losses. The markets had a high opening, but at the end of the day, the pair returned to the level of 1.3700, which is a resistance level for the pair. The pair faces support at 1.3650 and resistance at 1.3720. Overall, EUR/USD traded with a low of 1.3572 and with a high of 1.3750. Today, ECB President Trichet is expected to speak.
EUR/USD – Last: 1.3712
| Resistance | 1.3740 | 1.3780 | |
| Support | 1.3680 | 1.3570 | 1.3400 |
British Pound (GBP) – The Pound rose against the greenback as inflation concerns came back. The pair will be bearish if it can’t break the main resistance of 1.6050, but if it does manage to break through, we will be witness to levels that haven’t been seen for a long time. Overall, GBP/USD traded with a low of 1.5820 and with a high of 1.6050. Today, the Nationwide HPI and Manufacturing PMI are expected.
GBP/USD – Last: 1.6045
| Resistance | 1.6055 | 1.6100 | 1.6155 |
| Support | 1.5950 | 1.5820 | 1.5760 |
Japanese Yen (JPY) – The Yen closed almost unchanged against the Dollar around the 82.10 area. According to the daily chart, the main support is still at 82.00. In case the pair does break this support level, the rate is expected to fall to 81.50 and then to 81.00. Overall, USD/JPY traded with a low of 81.98 and with a high of 82.66. Today, average cash earning is expected.
USD/JPY-Last: 81.96
| Resistance | 82.10 | 81.20 | 82.90 |
| Support | 81.90 | 81.50 | 81.00 |
Canadian dollar (CAD) – Canada’s dollar declined against the U.S Dollar due to statements from the Bank of Canada’s governor, Mark Carney. He stated that the strength of the currency is becoming a problem to economic expansion, meaning that he is encouraging the Loonie to weaken. The GDP expanded at the fastest rate in eight months, rising by 0.4% instead of the forecast of 0.2%. The Canadian is struggling between the bank governor’s statements and the high price of crude oil. Overall, USD/CAD traded with a low of 0.9860 and with a high of 1.0035. No economic data is expected today.
USD/CAD – Last: 0.9983
| Resistance | 0.9995 | 1.0005 | 1.005 |
| Support | 0.9970 | 0.9950 | 0.9930 |
No comments:
Post a Comment