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Hello, it's Wednesday October 12 2011 and I'm Martin Smith with the daily outlook from
UFX Bank. The US Dollar traded mixed versus most of
the majors over concern with the European debt crisis. Wall Street closed mixed as the
NASDAQ advanced by 0.66% and the Dow fell by 0.15%. Crude climbed to its highest level
in two weeks to close at $86.20 a barrel. However, Gold (XAU) fell by 0.6%, closing
at $1,661 an ounce. Today, the FOMC Meeting Minutes is expected.
The Euro closed unchanged versus most of the major currencies after Slovakia failed to
pass the Rescue plan. "Troika" said today that the IMF and the ECB will be transferring
another aid package of 8 billion to Greece at the beginning of November. Trading below
the resistance level of 1.3700 will keep the momentum of the pair negative, but if the
pair breaks above this level, it may reach 1.4060 again. Overall, the EUR/USD traded
with a low of 1.3564 and a high of 1.3683. Today, ECB President, Trichet is expected
to speak.
The British Pound fell versus the US Dollar after Manufacturing Production came out -0.3%
worse than the expected -0.1%. The trend for the pair remains bearish if it maintains its
resistance level of 1.5730, but should the pair break this it may reach 1.5950 again.
Overall, the GBP/USD traded with a low of 1.5573 and a high of 1.5668.
The Yen closed unchanged versus the US Dollar and most majors. Core Machinery Orders came
out better than expected 11% vs. 4.7% forecast. Technically, the USD/JPY is trading within
a narrow range with no clear long-term trend. If the pair breaks below the 76.00 level,
the trend will continue downwards. Today no major economic data is expected.
Canada’s dollar fell versus the greenback as concern that European officials may fail
to halt the region’s sovereign-debt crisis cut demand for currencies tied to growth,
and that the contagion may spread to banks. Housing Starts came out 206K better than expected
at 187K. The trend for the pair is bearish if it maintains its resistance level of 1.0330.
According to the 2-hour chart, the pair has strong support at 1.0250.
Well, that’s all for today. Be sure to visit us at UFXBank.com, for simple, safe, and secure
trading.