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Hello, it’s Monday, July 04, 2011, and I’m Martin Smith with the daily outlook from UFX
Bank. The Dollar weakened against most of the majors
on low volatile trading Friday. ISM Manufacturing PMI came out 55.3 better than expected 51.5.
Stock Markets in U.S closed positive as the Dow Jones jumped by 1.36% and the NASDAQ gained
1.53%. Crude hardly changed seeking a further trend; probably up if the 95.7 level is breached,
to close around the $95 a barrel. Gold (XAU) failed to retain the positive mood and fell
below $1480 only to recover and close at $1487 an ounce. Today, US banks will be closed for
Independence Day. The Euro gained against the greenback over
optimism that Greece will solve its debt crisis as finance ministers agreed to finalize a
Greek bailout package by mid-September. The Unemployment Rate came out 9.9% unchanged
as expected. Holding above the key support level of 1.4470 keeps the momentum positive
. Overall, EUR/USD traded with a low of 1.4435 and a high of 1.4577. No major economic data
is expected today. The Pound experienced modest gains against
the dollar but seems under heavy pressure to hold below 1.61. Manufacturing PMI data
disappointed investors as it came out 51.30 worse than the expected 52.30. Sterling could
gather more power against the greenback if the resistance level of 1.6130 is breached.
Overall, GBP/USD traded with a low of 1.5986 and a high of 1.6095. Today, Construction
PMI is expected at 53.6 vs. 54 previously. The dollar gained against the Yen after another
day of straggle between these two currencies. In general, not much can be expected from
the pair as it has remained locked in a trading range of 150 pips for more than a month now.
The only breakthrough that may occur is if the resistance level of 81.30 is breached
or support at 79.70 is broken. Overall, USD/JPY traded with a low of 80.48 and a high of 81.13.
Today, Average Cash Earnings are expected at -0.4% vs. -1.4% previously.
The Canadian dollar climbed 5 consecutive days against the U.S dollar on rising optimism
that European leaders have accomplished the bailout package for Greece and fueled investor
appetite for higher yielding assets. Holding below resistance at 0.9620 keeps the trend
negative for the pair. Overall, USD/CAD traded with a low of 0.9578 and a high of 0.9649.
Today, RMPI is expected at -2.5% vs. 6.8% previously.
Well, that’s all for today. Be sure to visit us at UFXBank.com, for simple, safe, and secure
trading.�