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Hello, it's Tuesday, September 20, 2011, and I'm Martin Smith with the daily outlook from
UFX Bank.
The Dollar strengthened against the other major currencies as stocks pared losses in
the final hour of trading as Greece said discussions with European officials about the country’s
bailout were productive. Wall Street closed bearish as the NASDAQ fell by 0.36% and the
Dow by 0.94. Crude oil dropped by 2.6% and closed at $85.70 a barrel. Gold (XAU) also
fell today by 2% closing nearly at $1,778.90 an ounce. Today, Building Permits is expected
to come out at 0.60M as previously.
The Euro fell against the US Dollar as stocks markets in Europe experienced a sharp drop
as investors awaited to see if Greece will default. The EUR/USD’s momentum is bearish
as long as the pair remains below the 1.3650 level. Next support on the daily chart is
at 1.3585. Overall, the EUR/USD traded with a low of 1.3604 and a high of 1.3688.
The Pound fell against the US dollar as stock markets fell. The momentum is bearish below
1.5676 with support at 1.5585 and resistance at 1.5840. Overall, the GBP/USD traded with
a low of 1.5655 and a high of 1.5702. No economic data is expected today.
The Yen strengthened against the US Dollar over investor concern about Greece's future.
The USD/JPY is struggling at the 77.00. As long as the pair is trading below 77.20 the
Yen is the more attractive. Next support line on the daily chart is at 76.00 level. Overall,
the USD/JPY traded with a low of 76.31 and a high of 76.96. No economic data is expected
today.
Canada’s dollar dropped the most in more than a month against its U.S. counterpart
on concern Greece may not receive aid, crimping demand for higher-yielding assets. As long
as the pair is trading above the 0.9880 level, the trend of the US Dollar is bullish. The
Moving Average indicator on the one-hour chart supports a positive trend for the US Dollar.
Overall, the USD/CAD traded with a low of 0.9892 and a high of 0.9936.
Well, that’s all for today. Be sure to visit us at UFXBank.com, for simple, safe, and secure
trading.