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>>Martin: Hello, it's Thursday May 5, 2011, and I'm Martin Smith with the daily outlook
from UFX Markets. The Dollar was mixed against the other major currencies after ADP Nonfarm
Employment came less than expected (179k vs. 200k forecast) and the ISM Non-Manufacturing
PMI dropped unexpectedly in April (52.8 vs. 57.9 forecast), causing the investors to stick
with the Dollar as a refuge . NASDAQ and Dow Jones weakened by 0.47% and 0.66% respectively,
Crude decreased by 1.6% owing to better crude oil inventories data, closed at $109.40 a
barrel. Gold (XAU) weakened by 2%, closed at $1510 an ounce. Today, Unemployment claims
are expected to decline from 429K to 400K, and Fed Chairman Bernanke is due to speak.
The Euro reached its strongest level in 17 months versus the Dollar on speculation European
central bank President Jean Claude Trichet will signal further interest rate boosts after
a policy meeting today. The EUR/USD was struggling at 1.4900 during the past week. As long as
the rate remains below 1.4900 the pair will probably decline to 1.4800. Overall, EUR/USD
traded with a low of 1.4775 and a high of 1.4940. Today, the interest rate decision
is expected to remain unchanged at 1.25. The Pound fell to its lowest level in more than
a year versus the Euro and fluctuated versus the Dollar after worsening economic data spurred
speculation that the Bank of England will keep rates at a record low to revive growth.
Next support on the daily chart is at 1.6430, if the pair breaks below this level the pound
will continue with its bearish trend. Overall, GBP/USD traded with a low of 1.6452 and a
high of 1.6574. Today, interest rate decision is expected unchanged at 0.50%. The Yen strengthened
against most major currencies as stocks and commodities markets dropped for a second day
damping appetite for higher yielding assets. The USD/JPY’s momentum is still very bearish,
As long as the pair is trading below 81.40 the yen is the more attractive. Overall, USD/JPY
traded with a low of 80.43 and a high of 81.19. No economic data is expected today due to
a bank holiday in Japan. The Canadian dollar dropped against most major currencies as stocks
and commodities fell around the world, damping demand for assets related to global economic
growth. As long as the pair is trading above 0.9520 the USD/CAD could rise towards 0.9700
or even more Overall, USD/CAD traded with a low of 0.9504 and a high of 0.9603. Well,
that’s all for today. Be sure to visit us at UFXMarkets.com, your source for online
trading.