Daily Review 08/12/2009

USD Dollar (USD)

The Dollar continued Friday's momentum and gained versus most majors after no major news was released. Chairman Bernanke said the weak employment and tight credit will cause a slow expansion. NASDAQ and Dow Jones ended almost flat moving by -0.22% and 0.01% respectively after Chairman Bernanke said it is too early to declare the recovery will last. Crude weakened by -1.96% closing at 73.99$ a barrel as OPEC ministers flag steady output and Gold (XAU) dropped by -0.22% closing at 1158.8$ an ounce on a stronger Dollar. Today, IBD/TIPP Economic Optimism is expected with 49.5 versus 47.9 prior.


The Euro reached a monthly low versus the Dollar breaking below the 1.48 support level but unable to keep below it. The pair has crossed and remained below the 50 day moving average for the first time in 8 months supporting the Dollar rebound. German Factory Orders came out weaker with -2.1% versus 0.6% expected. Overall, EUR/USD traded with a low of 1.4755 and with a high of 1.4904. Today, German Industrial Production is expected with 1.1% versus 2.7% prior.

EUR/USD - Last: 1.4840

Resistance 1.4900 1.4970 1.5020
Support 1.4775 1.4735 1.4685

British Pound (GBP)

The Pound remained unchanged versus the Dollar and gained slightly versus the Euro as investors await Wednesday announcements from Bank of England. Overall, GBP/USD traded with a low of 1.6312 and a high of 1.6515. Today, Manufacturing Production is expected with 0.5% versus 1.7% prior. Industrial Production is expected with 0.5% versus 1.6% prior. NIESR GDP estimate will be released.

GBP/USD - Last: 1.6460

Resistance 1.6500 1.6550 1.6600
Support 1.6390 1.6330 1.6275

Japanese Yen (JPY)

The Yen gained versus the Dollar as slight declines in world markets along with the Dollar rally lowered risk appetite. Japanese Current Account came out weaker with 1.38T versus 1.6T expected. M2 Money Stock came out weaker with 3.3% versus 3.5% expected. Overall, USD/JPY traded with a low of 89.04 and a high of 90.42 and EUR/JPY traded with a low of 132.36 and a high of 134.36. Today, Final GDP is expected with 0.8% versus 1.2% prior.

USD/JPY-Last: 89.35

Resistance 89.75 90.10 90.75
Support 89.00 88.50 88.00

Canadian Dollar (CAD)

The Canadian Dollar gained versus the Dollar after Building Permits jumped by 18% versus 1.1% expected. Overall, USD/CAD traded with a low of 1.0482 and a high of 1.0649. Today, Bank of Canada will announce the Interest Rate Decision expected to remain at 0.25%. Housing Starts are expected with 159K versus 157K prior.

USD/CAD - Last: 1.051

Resistance 1.0585 1.0645 1.0690
Support 1.0480 1.0450 1.0430

UFX Bank Research