Daily Review 03/12/2009

[UFXBank]

USD Dollar (USD)


The Dollar strengthened against most majors after ADP Non-Farm Employment came out worse than expected at -169K vs. -149K forecast showing employment is still troubled by the recession increasing demand for the Dollar as safety. The Beige book was released saying consumer spending has improved and the U.S economy is improving. NASDAQ rose by 0.42% and Dow Jones weakened by -0.18%. Crude oil fell by -2.3% to 76.6$ a barrel after the inventories report showed increases in the supply instead of a decrease expected. Gold (XAU) rose by 1.2% reaching a new record and closed above 1214 an ounce. Today, Unemployment Claims is expected at 479K vs. 466K prior, ISM Non-Manufacturing PMI expected to slightly rise from 50.6 to 51.6, Fed Chairman Bernanke Testifies.

EURO (EUR)


The Euro weakened versus the Dollar after disappointing employment figures in the U.S were released. Overall, EUR/USD traded with a low of 1.5032 and with a high of 1.5109.Today, Retail Sales is expected at 0.2% vs. -0.7% prior, Interest Rate Decision is expected to remain at 1%, ECB President Trichet Speaks.

EUR/USD - Last: 1.5086


British Pound (GBP)


The Pound rose to the highest level in almost a week against the Dollar after a report showed the pace of contraction in the U.K. construction industry slowed and investor concern eased that Dubai World may default. Overall, GBP/USD traded with a low of 1.6548 and with a high of 1.6694.Today, Services PMI is expected at 57.1 vs. 56.9 prior.

GBP/USD - Last: 1.6669

Japanese Yen (JPY)


The Yen fell against all of its major counterparts after Japan’s Prime Minister Yukio Hatoyama said the currency’s strength can’t be left as it is and investors expect action. Capital Spending came out worse than expected with -24.8% versus -15.8% expected. USD/JPY traded with a low of 86.59 and with a high of 87.48. No economic data expected today.

USD/JPY-Last: 87.79

Canadian dollar (CAD)


The Canadian Dollar weakened against its U.S. counterpart as Crude Oil tumbled along with other commodity prices, diminishing the appeal of currencies tied to growth. Overall, USD/CAD traded with a low of 1.0431 and a high of 1.0514. No economic data expected today.

CAD/USD - Last: 1.0494

UFX Bank Research