US Dollar (USD)

The Dollar traded near the lowest level this year against 6 of its most traded partners on speculation the global economy is shaking off the worst recession in the last 6 decades, spurring demand for higher-yield currencies. A report yesterday showed that New Home Sales rose above expectations to 384K. Wall Street closed with minor gains. NASDAQ and Dow Jones finished the NY session at 0.10% and 0.17% respectively. Crude oil rose to 68.38$ a barrel on the back of the positive finical data in the US. Gold (XAU) continued to advance, almost reaching 960$, but closed at 954$ an ounce. Today, Home prices in U.S. might fall in a slower pace in May, coming at -17.8% vs. -18.1% previously and Consumer Confidence is expected at 49.0 vs. 49.3 previously.

EURO (EUR)

The Euro continued to advance against the Dollar, touching a seven week high as a report showed sales of new homes rose last month by the most in eight years. Adding to the bullish trend of the Euro was German consumer confidence report that rose for a third month on retreating inflation and signs the economy is starting to recover. Overall, EUR/USD traded with a low of 1.4172 and with a high of 1.4297. No economic data expected today in the Euro Zone.

EUR/USD - Last: 1.4265

Resistance

1.4275

1.4290

1.4340

Support

1.4195

1.4155

1.4130

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British Pound (GBP)

The Pound strengthened versus the Dollar after U.K. house prices held their value for a third month in July as the credit squeeze and the recession prevented the property market from improving. All in all, GBP/USD traded with a low of 1.6381 and with a high of 1.6523. Today CBI Distributive Trades Survey is expected at -12 vs. -17 forecast.

GBP/USD - Last: 1.6520

Resistance

1.6505

1.6545

1.6585

Support

1.6385

1.6355

1.6315

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Japanese Yen (JPY)

The Yen weakened against all majors as a result of Japan's corporate service prices that fell at a record pace in June as companies reduced spending, adding to evidence deflation may again be taking hold in the world's second-largest economy. Overall USD/JPY traded with a low of 94.65 and with a high of 95.38. No economic data expected today.

USD/JPY-Last: 95.05

Resistance

95.25

95.50

95.70

Support

94.65

94.40

94.20

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Canadian dollar (CAD)

The Canadian Dollar advanced to the highest level since October as optimism that the worst of the recession may be over boosted commodities, global stocks and growth-linked currencies. All in all the USD/CAD traded with a low of 1.0777 and with a high of 1.0877. No economic data expected today.

CAD/USD - Last: 1.0890

Resistance

1.0915

1.0985

1.1095

Support

1.0750

1.0690

1.0650

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