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Hello, it’s Tuesday, October 09, 2012, and I’m Martin Smith with the daily outlook
from UFX Markets.
The Dollar gained versus most majors as stocks declined and economy forecasts were lowered.
Wall Street ended with declines after IMF slashed forecasts for global economic growth.
Dow Jones declined by 0.19%, NASDAQ declined by 0.76% and S&P by 0.35%.
Gold finished nearly unchanged at 1,776$ with Crude Oil gaining slightly, closing at 89.95$
a barrel after a failed attempt to cross below $88.
The Euro declined versus the Dollar after European finance ministers met in Luxembourg
to discuss the region’s debt crisis. Spain is struggling to avoid asking for a bailout
with European leaders speculating on the bailout date and size. Technically, EUR/USD is on
an uptrend according to the daily chart and is near the trend line support which could
push it upwards towards the 1.32 resistance level again.
The Pound continued its decline versus the US Dollar and the Euro. Technically, the Cable
dropped after a failed attempt to cross above 1.62 and is currently near support at 1.60.
Today, Manufacturing Production is expected with -0.6% versus 3.2% prior, and Trade Balance
at -8.3B versus -7.1B.
The Canadian Dollar gained versus the U.S Dollar as speculation regarding a possible
rate hike by the Bank of Canada rise. Technically, the long term trend of the pair remains downwards
with a target at 0.96. Today, Housing Starts are expected with 201K versus 224K prior.