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Hello, it’s Thursday, June 07, 2012, and I’m Martin Smith with the daily outlook
from UFX Markets.
Wall Street closed positive as investors bet the Fed would signal for an increased need
for stimulus, moving towards QE3. The NASDAQ gained 2.44% closing at 2,550. The Dow Jones
advanced by 2.37% closing at 12,420 and the S&P gained 2.30% closing at 1,316.
The US Dollar slumped across the board as investor's expectations for the approaching
QE3 seem very realistic on hope that central bankers will take action to strengthen the
global economy. Today, Unemployment Claims are expected at 381k vs. 383k previously.
Gold ended the day with a slight gain of 0.2% closing at $1622 an ounce. Crude Oil gained
for a third day on economic stimulus speculation boosting demand for the fuel.
The Euro soared versus the Dollar as the ECB president said that the policy makers are
ready to keep supporting the Euro Zone, after leaving the Interest Rate unchanged as expected
at 1.0%. Technically, breaching the next resistance level at 1.2580 might push the pair back to
1.2670.
The Cable rose to the highest level in 11 weeks versus the dollar after the ECB president
said officials are ready to act to the debt crisis, easing concerns over the U.K economy.
Holding above 1.5430 keeps the positive momentum for the pair.
The Canadian Dollar gained for a third day versus the greenback as speculations on supporting
the economic growth by policy makers boosted demand for commodities and equities. Today,
the Ivey PMI is expected at 53.50 vs. 52.70 previously.