Daily Forex Review 11/10/2010

Daily Forex Review 11/10/2010

USD Dollar (USD) – The Dollar fluctuated against other major currencies, it closed almost at the opening rate after the non- farm pay rolls came out -95k worse than expected 1k. The Federal Reserve might be buying more debts after the data last friday.  In addition Unemployment Rate came out 9.60% better than expected 9.70%.   NASDAQ and Dow Jones strengthened by 0.77% and 0.53% respectively, crude oil rose by 1.0%, closing at 82.66$ a barrel, Gold (XAU) increased by  0.7% , closing at 1345.3$ an ounce. Today, no economic data is expected.

EURO (EUR) –The Euro strengthened against the Dollar for a fourth week in the longest stretch of losses in almost two years as bigger than expected U.S. job cuts spurred speculation that the Federal Reserve will buy more debt. EUR/USD has encounter couples of times with the 1.4000 level which is the main resistance on daily chart, as long it’s above 1.3850 the momentum is still bullish. Overall, EUR/USD traded with a low of 1.3832 and with a high of 1.3984. Today, The ECB President Trichet Speaks.

EUR/USD – Last:  1.3980                                                                                                                                               

British Pound (GBP) – The Pound advanced against the Dollar after the Bank of England held the target for bond holdings at 200 billion pounds and disappointed data from US, which led the investors to prefer the Pound instead of the Dollar. The GBP/USD still fighting with the 1.6000 resistance once it cross it, the trend will continue with its uptrend .Overall, GBP/USD traded with a low of 1.5823 and with a high of 1.5966. Today, no economic data is expected.

GBP/USD - Last:  1.5947

Japanese Yen (JPY) –The Yen touched a 15 year high against the Dollar on speculation that Federal Reserve policy makers will signal this week their willingness to buy more government debt to support economic growth. The USD/JPY has continued with its negative trend, therefore the momentum is bearish for the Dollar, the main resistance  on the 1 hour chart is 83.00,if the price cross this level  it could climb to 84.00 Overall, USD/JPY traded with a low of 81.72 and with a high of 82.56. No economic data expected today.

USD/JPY-Last: 81.97

Canadian dollar (CAD) – The Canadian Dollar rose against the Dollar for the sixth straight week, the longest stretch since May 2009 after a weak U.S. jobs report which affected a stronger oil and other assets that drifted  the Canadian as well. In addition, Employment Change came out worse than expected at -6.60K vs. 11.30K forecast and Unemployment Rate  remains unchanged at 8.00%. The momentum of the USD/CAD is still strongly negative for the US Dollar, as long the USD/CAD below 1.0350 levels the momentum is bearish , the next support on the 1 hour chart is located at 1.0050. Overall, USD/CAD traded with a low of 1.0068 and with a high of 1.0233. Today, no economic data is expected.

USD/CAD - Last: 1.0101