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>>Martin: Hello, it’s Monday, June 13, 2011, and I’m Martin Smith with the daily outlook
from UFX Bank. The dollar strengthened against most of the
major currencies due to a decline in risk appetite among investors. In addition, there
is speculation about Congress reaching a debt-reduction deal that will deadline risks sending the
U.S. government into default. Stock Markets closed negative as the Dow fell by 1.41% and
the NASDAQ lost 1.53%. The Dow Jones Average is currently in its longest slump since 2002,
as investor concern over the global economy slowly intensifies. Crude dropped for a second
day by 2.70%, closed at $99.20 a barrel. Gold (XAU) fell by 0.70% and closed at $1,530 an
ounce. No economic data is expected today. The euro fell against the U.S Dollar over
concern that Europe’s debt crisis will worsen overshadowed prospects for interest-rate increases
to tame inflation. European Central Bank President Trichet may signal that the pace of interest-rate
increases this year will slow. Trading below resistance at 1.4400 will keep the momentum
negative for the pair but should it break above this it might reach 1.4620. Overall,
EUR/USD traded with a low of 1.4319 and a high of 1.4694.
The Pound fell for a second week in a row against the Greenback after the central bank
kept its benchmark interest rate at a record low of 0.5%. The trend for the pair is bearish
provided it maintains resistance at 1.6280. Overall, GBP/USD traded with a low of 1.6212
and a high of 1.6465. No economic data is expected today.
The dollar strengthened against the yen due to expectation that the central bank is forecast
to keep the benchmark interest at zero to 0.1 percent tomorrow. In addition, Japan’s
machinery orders fell by 3.30% for the first time in four months in April. If the pair
succeeds in breaking resistance at 80.80 it may bring it to 81.20. No economic data is
expected today. The Canadian Dollar fell against its U.S.
counterpart due to the US Dollar strengthening and a decline in oil prices. And all this
in spite of the fact that a government report Friday showed Canada’s jobless rate unexpectedly
fell to 7.40% from 7.60% in May to its lowest level since January 2009. After the release
the pair tried to break support at 0.9670, but with no success. No economic data is expected
today. That’s it for today. Be sure to visit us
at ufxbank.com, your simple, safe, and secure trading.