Daily Review 07/12/2009

[UFXBank]

USD Dollar (USD)


The Dollar rallied versus all majors after Nonfarm Payrolls came out better than expected with -11K versus -119K expected and -111 K prior. The reverse correlation between U.S economic data and the Dollar prices seems to have ended. The U.S jobs market is improving and the Federal Reserve is expected to raise the rates if the improvement continues. Unemployment Rate came out 10% versus 10.2% expected and prior. NASDAQ and Dow Jones gained by 0.98% and 0.22% respectively after the better employment data. Crude weakened by -1.29% closing at 75.76$ a barrel and Gold (XAU) dropped by -3.99% closing at 1160.2$ an ounce on stronger Dollar and weaker inflation fears. Today, Federal Reserve Chairman Bernanke will speak in Washington. Consumer Credit is expected with -9.6B versus -14.8B prior.

EURO (EUR)


The Euro fell as the Dollar rallied after Nonfarm Payrolls data showed a massive improvement raising expectations for a rate increase in the Dollar, lowering the demand for the Euro. Overall, EUR/USD traded with a low of 1.4821 and with a high of 1.5090. Today, German Factory Orders are expected with 0.6% versus 0.9% prior. ECB President Trichet will speak in Brussels.

EUR/USD - Last: 1.4870

Resistance 1.4925 1.4970 1.5000
Support 1.4800 1.4765 1.4735



British Pound (GBP)


The Pound slid versus the Dollar after the better than expected employment data in the U.S raised expectation for a future rate increase in the Dollar. Overall, GBP/USD traded with a low of 1.6422 and a high of 1.6673. Today, Halifax House Price Index is expected with 40.50 versus 40.90 prior.

GBP/USD - Last: 1.6470

Resistance 1.6525 1.6590 1.6620
Support 1.6390 1.6357 1.6275


Japanese Yen (JPY)


The Yen plunged versus the Dollar and the Euro after better than expected U.S employment data led to less demand for the Yen as a Safe Haven as economic conditions improved. Overall, USD/JPY traded with a low of 87.99 and a high of 90.76 and EUR/JPY traded with a low of 132.49 and a high of 134.56. Today, Japanese Current Account is expected with 1.6T versus 1.34T prior. M2 Money Stock is expected with 3.5% versus 3.3% prior.

USD/JPY-Last: 90.25

Resistance 90.75 91.35 91.65
Support 89.70 89.154 88.75


Canadian Dollar (CAD)


The Canadian Dollar remained almost unchanged versus the Dollar after better than expected employment data in the U.S and Canada left the pair unchanged. Canadian Unemployment Rate came out 8.5% versus 8.6% expected and Employment Change showed a surprising rise of 79.1K more workers versus 15K expected. Overall, USD/CAD traded with a low of 1.0433 and a high of 1.0595. Today, Building Permits are expected to rise by 1.1% versus 1.6% prior.

CAD/USD - Last: 1.0565

Resistance 1..0615 1.0645 1.0690
Support 1.0515 1.0480 1.0460


UFX Bank Research