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Hello, it’s Monday, August 22, 2011, and I’m Martin Smith with the daily outlook
from UFX Bank. The U.S. Dollar fell against most of the major
currencies as traders are expecting Federal Reserve Ben Bernanke to signal this week that
the central bank will start a new monetary policy in order to help the United States
economy. Stock markets closed negative as the Dow fell by 1.57% and the NASDAQ lost
1.62%. Crude dropped by 0.2% and closed at $82.26 a barrel after Morgan Stanley and Deutsche
Bank AG cut their forecasts for global economic expansion. Gold (XAU) strengthened by 6.30%
last week and closed at $1852.20 an ounce – an all time record due to demand for an
investment haven. Today, the MBA Delinquency Rates are expected at 7.76% vs. 8.32% previously.
The Euro strengthened against the U.S. Dollar as currency traders put their trust in Trichet
to save European countries like Greece and Portugal with a deficit in their budget. The
momentum is bullish and facing strong resistance at 1.4440. Overall, the EUR/USD traded with
a low of 1.4381 and a high of 1.4389. No economic data is expected today.
The Pound strengthened against the greenback after a five-day rally. The currency declined
after Public Sector Net Borrowing came out -2.00B better than forecast 0.20B last Friday.
The trend for the pair will remain bearish if it succeeds in breaking its support level
of 1.6480. Overall, the GBP/USD traded with a low of 1.6485 and a high of 1.6507. Today
No economic data is expected today. The Yen weakened against the USD, Euro and
Pound during the Asian session. The USD/JPY has been struggling between 76.50 - 76.90.
Overall, the USD/JPY pair traded with a low of 76.54 and a high of 77.20. No economic
data is expected today. Australia’s dollar stood at 0.9 percent
after a one-week low versus the U.S. dollar on signs the global economy is slowing, reducing
demand for higher-yielding assets. The pair began the week in bearish mood, and should
it fail to overcome resistance at 1.0480 the momentum is set to become bearish again. No
economic data is expected today.
Well, that’s all for today. Be sure to visit us at UFXBank.com, for simple, safe, and secure
trading.