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Hello, it’s Tuesday, January 01, 2013, and I’m Martin Smith with the daily outlook
from UFX Markets.
The US Dollar traded mixed versus most of the major currencies as U.S. lawmakers rushed
to reach a deal to steer the country away from the fiscal cliff. Wall Street closed
the trading day in the green on optimism that U.S senate will find a solution to the crisis.
The S&P rose by 1.69%, Dow Jones gained by 1.28% while NASDAQ added 2.1% to its value.
Today, ISM Manufacturing PMI is expected at 50.20 vs. 49.50 previously.
Gold gained by 0.40% closing at $1,662 an ounce, while Crude Oil finished the trading
day almost unchanged at $91.20 a barrel.
The Euro fell against the dollar as investors spent the last day of the year parked in the
safe-haven greenback monitoring progress to avoid the year-end fiscal cliff. On to the
4-hour chart, the EUR/USD has reached strong support at 1.3170. If the pair fails to break
this it is expected to rise towards 1.3250. Today, German Prelim CPI is expected at 0.70%
vs. -0.10% previously.
The Cable rose versus the USD. Technically, the Pound may find a strong resistance level
at 1.6270. On the daily chart, the GBP/USD has finished the expected retracement and
is expected to retest the 1.6300resistance level. Today, Manufacturing PMI is expected
at 49.20 vs. 49.10 previously.
The Canadian dollar rose versus the US dollar as concerns over U.S. budget negotiations
boosted safe haven demand. On the 1-hour chart, the pair is moving in a range between the
0.9935 support level and the 0.9965 resistance level. Breaking 0.9965 will keep the positive
momentum towards 1.000 areas. No major economic releases are expected today.