US Dollar (USD)

The US Dollar managed to regain strength after the last days' pressures. In a volatile session yesterday the Dollar, which fell first managed to recover later and extended gains after 2Q results. Stocks markets rallied today in the US. The Dow Jones rose 2.10% and ended above 9000 at the highest level since November of last year. NASDAQ completed 12 sessions in a row with gains. Existing Home Sales cam a bit higher than expected at 4.89M but Initial Jobless Claims were released slightly higher at 554K. Crude oil rose to a two-week high and closed on a level of 67.16$ for a barrel, on concern the oil supply will drop due to decrease in oil refineries activities. Gold (XAU) closed on a level of 949 $ an ounce. Looking ahead, The Michigan Consumer Sentiment Index is expected at 65.10 vs. previously 64.60.

Euro (EUR)

The Euro fell against the Dollar after reaching levels near 1.4295. EUR/USD dropped a 100 pips from 1.4295 (7-week high) to 1.4195 and lost previous gains. The pair is trying to get back above 1.4200 and is at the same levels it had at the beginning of the day. Overall EUR/USD traded with a low level of 1.4119 and high level of 1.4295. Today, The German IFO Business Climate Index is expected at 86.90 vs. previously 85.90.

EUR/USD – Last 1.4170

Resistance

1.4255

1.4275

1.4290

Support

1.4112

1.4095

1.4055

width=650

British Pound (GBP)

The Pound also followed most majors and fell slightly against the Dollar after reaching a 3-week high at 1.6585. The pair found support at 1.6500 and is holding above that level. The Pound could not break key resistance levels despite the surge in stocks. Overall GBP/USD traded with a low level of 1.6432 and high level of 1.6585. Today, UK GDP is expected at -0.3% vs. previously -2.4%.

GBP/USD – Last 1.6510

Resistance

1.6585

1.6605

1.6635

Support

1.6450

1.6395

1.6350

width=650

Japanese Yen (JPY)

The Dollar is extending gains against the Yen. USD/JPY jumped and reached a fresh 3-week high at 95.30. The Japanese currency is weaker across the board and suffered a sell off. Demand for the yen weakened after U.S. stocks surged yesterday. Overall USD/JPY traded with a low level of 93.52 and high level of 95.29. Today, the All Industries Activity Index was released at 0.7% vs. previously 1% forecast.

USD/JPY – Last 94.80

Resistance

95.25

95.5

95.7

Support

94.45

94.08

93.88

width=650

Canadian Dollar (CAD)

The Canadian Dollar rose to 7-Week High as the central bank said the country's recession is ending amid rising commodity prices and consumer confidence. Crude Oil price which rose dramatically strengthened the Canadian Dollar. Overall, USD/CAD traded with a low of 1.0840 and with a high of 1.1010.

USD/CAD – Last 1.0910

Resistance

1.095

1.101

1.1095

Support

1.084

1.079

1.075

width=650