Tip:
Highlight text to annotate it
X
>>>INT: Hello, it’s Wednesday, July 27, 2011, and I’m Martin Smith with the daily
outlook from UFX Bank. The dollar slumped against most of its major
peers before the U.S. House votes on a plan to cut government spending in exchange for
raising the debt ceiling. CB Consumer Confidence came out 59.50 better than expected 56.00
and New Home Sales came out 312K worse than expected 320K. Stock Markets in U.S. closed
negative as the Dow fell by 0.73% and the NASDAQ fell by 0.10%. Crude rose by 0.4% and
closed at $99.15. Gold (XAU) advanced by 0.30% to close at $1616.80. Today, Core Durable
Goods Orders is expected at 0.50% vs. 0.70% previously and the Crude Oil Inventories at
-1.30M vs. -3.70M previously. The Euro rose against the U.S Dollar and remained
around 1.4500. As long as the rate is above 1.4480 the momentum of the pair is bullish.
Overall, the EUR/USD traded with a low of 1.4356 and with a of 1.4535. Today, German
CPI is expected at 0.30% vs. 0.10% previously. The Pound strengthened against the greenback
before the debt vote in the U.S. GDP came out as expected at 0.20%. Further appreciation
in the pair is possible if it succeeds in breaching resistance of 1.6370, otherwise
we might see some technical adjustment downwards to 1.6280. Overall, the GBP/USD traded with
a low of 1.6265 and a high of 1.6323. Today, CBI Industrial Trends Orders is expected at
-3.00 vs. 1.00 previously. The dollar fell against the yen to its lowest
level since the earthquake in Japan last March as U.S. President Barack Obama addressed the
nation on the economy. Trading below resistance of 78.00 keeps the trend negative for the
pair. Overall, the USD/JPY traded with a low of 77.77 and a high of 78.68. No economic
data is expected today. Canada’s dollar appreciated to its highest
level since November 2007 as the greenback declined against all of its most-traded counterparts
over concern that the U.S. may fail to reach agreement on raising its debt cap. The pair
broke support of 0.9440 and is holding in this area. If the rate remains below the support
we should see the CAD at 0.9350. Overall, the USD/CAD traded with a low of 0.9434 and
a high of 0.9474. Today, no major economic data is expected.
Well, that’s all for today. Be sure to visit us at UFXBank.com, for simple, safe, and secure
trading.