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Hello, it’s Thursday, January 17, 2013, and I’m Martin Smith with the daily outlook
from UFX Markets. The US Dollar traded mixed versus the major
currencies after Core CPI came out -0.1% worse thanthe expected 0.2%. Wall Street closed
the trading session mixed. Apple erased previous day’s losses after it surged by more than
4.2% and dragged the NASADQ to a positive close. The Dow lost -0.17%, the NASDAQ gained
by 0.02% and the S&P 500 added 0.22% to its value. Today, the Building Permits are expected
to come out at 0.91M vs. 0.90M previously. Unemployment Claims are expected to come out
at 369k vs. 371k previously and the Philly Fed Manufacturing Index is expected at 7.1
vs. 8.1 previously. Gold was unchanged during the day closing
at $1,679.50 per ounce, and Crude Oil closed the trading day up by 0.75% at $94.20 a barrel.
The Euro declined slightly versus the US Dollar after a release of the FED’s Beige Book.
The CPI came out unchanged at 2.2% as expected and the German 10-y Bond Auctions was set
at 1.56% vs. 1.40% previously. Technically, the EUR/USD is trading near the 1.3270 level.
A cross below this level could lead it back towards the 1.3180 support level. Today, the
ECB Monthly Bulletin, which provides analysis of the economic conditions from the bank’s
viewpoint, is expected to be released. The Pound posted fourth bearish days versus
the dollar as the World Bank cut its global growth forecast for this year, causing fear
among investors which favored the greenback over the Sterling. Technically, the GBP/USD
is facing a strong support level of 1.5970; the pair may continue to slide to the next
support level at 1.5920 areas. No major economic data is expected today.
The U.S dollar gained against the Canadian dollar as government officials in Russia and
Japan did not support the monetary policies in which they use to drop the value of major
currency in order to boost economic growth. Technically, the USD/CAD has a strong support
area at 0.9830 and the pair is expected to continue adding gains till it face the next
resistance level at 0.9920. Today, the Foreign Securities Purchases are expected at 9.45B vs. 13.26B previously.