Monday, December 6, 2010

Dollar Looses Gains on Risk Appetite

USD Dollar (USD) – The Dollar lost gains versus most of the major currencies in Forex trading after positive macro data in U.S. signaled improvement, as the Pending Home Sales jumped unexpectedly to 10.4% much better than expected -0.7%, hence the investors jumped back to riskier assets. The Unemployment claims came out 436K worse than expected 425K. The Stock Market in U.S. soared as the Dow Jones increased by 0.95% and the NASDAQ gained 1.17%. The Crude Oil jumped upwards in more than 1.4% closing near a fresh record high at 88$ a barrel. The Gold (XAU) almost unchanged closed at 1385$ an ounce. Today, the most important monthly data of NFP are expected at 143k vs. 151k previously. The Unemployment rate is expected unchanged at 9.6%.

Euro (EUR) – The Euro climbed for the second day versus the dollar, supported by risk appetite and strengthening stock and commodity markets. The macro data came out unchanged as expected with Interest rate at 1%, PPI at 0.4% and the GDP at 0.4%. Breaching the resistance level of 1.3260 might extend the gains for the pair. Overall, EUR/USD traded with a low of 1.3060 and with a high of 1.3246. Today, The ECB president will speak and later the retail sales are expected to come out at 0.4% vs. -0.2% previously.
EUR/USD – Last:  1.3200
Resistance
1.3260
1.3300

Support
1.3180
1.3080
1.3040
British Pound (GBP) – The Pound is fluctuating near the critical support level of 1.5550 for the fourth day, attempting to determine the leading trend as it closed with small loss to the dollar. The Construction PMI came out 51.8 better than expected 51.1. Holding above the support level of 1.5550 might push the pair upwards as oversold conditions seen in the pair. Overall, GBP/USD traded with a low of 1.5510 and with a high of 1.5666. Today, the Service PMI is expected unchanged at 53.2.
GBP/USD - Last: 1.5593
Resistance
1.5650
1.5730

Support
1.5550
1.5500
Japanese Yen (JPY) – The Yen is fluctuating at a tight range of 83.40 - 84.40 for the fifth day, attempting to determine the leading trend as it closed with small gain against the dollar, following other leading currencies. Only breaking the range will light some new trend in the pair, otherwise we will keep seeing it fluctuating between the boundaries. Overall, USD/JPY traded with a low of 83.47 and with a high of 84.35. No economic data is expected today.
USD/JPY-Last: 83.70
Resistance
83.80
84.40
Support
83.40
82.80

Canadian dollar (CAD) – The U.S. Dollar lost gains against Canada's dollar as crude oil and Wall Street soared and investors favored assets linked to economic growth. Breaking the critical support level at 0.9980 might trigger new sell orders and push the pair lower.  Overall, USD/CAD traded with a low of 1.0023 and with a high of 1.0189. Today, the Employment Change is expected at 20.2k vs. 3k previously. The Unemployment Rate is expected unchanged at 7.9%.
USD/CAD - Last: 1.0139
Resistance
1.0080
1.0140
1.0230
Support
1.0020
0.9980


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