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Hello, it’s Tuesday, October 02, 2012, and I’m Martin Smith with the daily outlook
from UFX Markets.
The US Dollar traded mix across the board as a gauge of U.S. manufacturing unexpectedly
rose, damping demand for the refuge of U.S. government securities. Wall Street closed
the trading day in the green after better than expected ISM Manufacturing PMI. The S&P
rose by 0.49%, Dow Jones increased by 0.77% while NASDAQ
added 0.21% to its value.
Gold increased by 0.69% and closed at $1,778. Crude Oil closed the trading day positive
rising by 1.04% closing at 92.50.
The Euro rose against the dollar after better than expected economic data came out from
Europe and the U.S. Final Manufacturing PMI came out at 46.1 better than expected at 46.0.
Technically, EUR/USD will remain bearish as long as it is trading below the 1.2950 resistance
level.
The Cable closed almost unchanged versus the USD as the Manufacturing PMI came out at 48.4
worse than expected at 49.5. Technically, according to the daily chart the GBP/USD is
likely to fall towards the 1.6000 support level as long as the rate below 1.6200. Today,
the 10-y Bond Auction is expected to be released.
The Canadian Dollar rose against the greenback as unexpected manufacturing gains for the
U.S. Technically, trading above the support level of 0.9780 continues the negative momentum
for the CAD. The USD/CAD is expected to rise towards the resistance area of 0.9900.