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>>>INT: Hello, it’s Thursday, June 30, 2011, and I’m Martin Smith with the daily outlook
from UFX Bank. The Dollar weakened against most major currencies
as Greece's parliament approved a five- year austerity plan designed to avert the euro
zone’s first sovereign debt default. Pending Home Sales came out better than expected at
8.2% vs. 2.4% forecast. Wall Street closed positive as NASDAQ advanced by 0.41% and Dow
Jones by 0.60%. Crude oil jumped by 2.0% due to a fall in the Crude Oil Inventories index.
This came out at -4.4M vs. -1.5M forecast. Crude closed at $94.77 a barrel, and gold
(XAU) advanced by 0.7% to close at $1510.40 an ounce. Today, Unemployment Claims are expected
to weaken from 429K to 420K. The Euro reached a two-week high against the
Dollar after Greek lawmakers approved a package of austerity measures ($112 billion) amid
48-hour strike and protests. Moreover, investors raised bets that the European Central Bank
will increase interest rates next week after the passage of austerity measures gave the
Euro a positive momentum. EUR/USD’s resistance is at 1.4530 on the daily chart. Overall,
EUR/USD traded with a low of 1.4327 and a high of 1.4448.
The Pound rose versus the Dollar as Greek’s austerity plan boosted investor appetite for
higher yielding assets. As long as the GBP\USD is trading below 1.6120 and below the 20 moving
average the pound’s momentum is still very bearish on the daily chart. Should the pair
cross 1.6120 then the pound will probably hit 1.6200 or even more. Overall, GBP/USD
traded with a low of 1.5970 and a high of 1.6074. Today, Nationwide HPI is expected
to be 0.10% vs. 0.30% previously. The Yen strengthened against a weakening Dollar
owing to Greece’s headline news caused major currencies to drift the Japanese currency
as well. The USD/JPY has been struggling around 80.50-81.20 levels during the past three days.
Only if the pair breaks above 81.20 will the US Dollar be bullish again. Overall, USD/JPY
traded with a low of 80.56 and a high of 81.18. No economic data is expected today.
Finally, the Canadian Dollar climbed the highest since December against the Dollar after consumer
prices rose more than forecast, prompting traders to ratchet up bets that the central
bank will resume raising interest rates. CPI came out 0.7% vs. 0.2% forecast and Core CPI
at 0.5% vs. 0.2% forecast. As long as the pair is trading below 0.9800 level the US
Dollar remains on a negative trend. Next support on the daily chart is at 0.9650. Overall,
USD/CAD traded with a low of 0.9687 and a high of 0.9825. Today, GDP is expected to
fall from 0.30% to -0.10%. Well, that’s it for today. Be sure to visit
us at ufxbank.com, for simple, safe and secure trading.