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Hello, it's Wedesday September 7 2011 and I'm Sam Jones with the daily outlook from
UFX Bank.
The dollar strengthened against most of the major currencies due to an increase in demand
for safe haven currency and growing risk aversion among investors. Crude oil jumped by 3.80%,
closing at 86.45$ a barrel. Gold (XAU) fell from a record high by 1.36%, closing at $1,876
an ounce. Today, the Beige Book is expected to be released.
The euro fell for a sixth day against the U.S Dollar due to growing risk aversion amongst
investors. Trading below the resistance level of 1.4180 will keep the momentum negative
for the pair. But if the pair breaks above this resistance level, it may reach 1.4350.
Overall, the EURO DOLLAR traded with a low of 1.3971 and with a high of 1.4285. Today,
German Industrial Production is expected to grow by 0.60% vs. 1.10% previously.
The Pound fell to a seven-week low against the greenback. The trend for the pair should
remain bearish if the pair maintains its resistance level of 1.6200. However if the pair breaks
that resistance it may reach to 1.6320. Overall, the POUND DOLLAR traded with a low of 1.5920
and with a high of 1.6208. Today, Manufacturing Production is expected to grow by 0.10% vs.
-0.40% previously.
The dollar strengthened against the Yen. Trading above the support level of 77.20 will keep
the trend bullish for this pair. No economic data is expected today.
The Franc Swiss dropped the most ever against the euro and the US Dollar, after the Swiss
central bank imposed a ceiling on the currency’s exchange rate. The trend for the pair will
continue to be bullish if the pair maintains it support level of 0.8500. No economic data
is expected today.
That's all for today. Be sure to visit us at ufxbank.com for simple, safe, secure trading.