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Hello, it's Tuesday, 20 March 2012 and I'm Martin Smith with the daily outlook from UFX
Markets. The US Dollar fell against most majors as
the U.S is said to be weighing more stimulus plans despite Bernanke’s comments last week.
Stocks finished stronger, Nasdaq gained by 0.75% and the Dow Jones with just 0.05% change.
Crude Oil closed at 107.89 a barrel, while Gold (XAU) closed at $1,663 an ounce, a gain
of 0.46%,. Today, Building Permits are expected with 0.69M versus 0.70M prior.
The Euro rose against the Dollar reaching a one-week high after an orderly auction of
Greek CDs which fixed a fair value price of 21.5 cents on the Euro for Greek bonds, well
within expectations. EUR/USD crossed above its 1.32 resistance level and above the 100-day
moving average and if it remains above 1.32 this could lead to a rally. No major economic
data is expected today. The British Pound gained versus the Dollar
following the Greek CD auction results and the weakness of the Dollar following rising
expectations of QE3. The GBP/USD is trading within a channel between 1.5650 and 1.5900,
a break above 1.5900 could lead to a rally. Today, CPI is expected with 3.4% versus 3.6%
prior. The Yen remained unchanged versus the Dollar
and weakened versus the other majors as stocks continued advancing, lowering risk aversion.
The Australian commodity-linked Dollar is near a 10- month high versus the Yen. Technically,
the USD/JPY trend remains bullish and as long as the pair remains above 83.00 the trend
is expected to continue. No major economic data is expected today.
The Canadian Dollar is nearing a 6-month high as stocks continued advancing and Oil prices
rise. The USD/CAD is trading within 0.9950 and 0.9860 and a break below the lower support
could lead to a rally in the Canadian currency. No economic data is expected today.