US Dollar (USD)

The Dollar traded on a mix trend against all the majors as stocks fell and investors wait for the interest rate decision today. Nonfarm Productivity was released far better than expected at 6.4% and inventories in the US wholesalers fell in June for a tenth straight month as a gain in sales helped distributors move out more of their excess supply. Wall Street fell for the second day in a row. NASDAQ and Dow Jones fell by 1.27% and 1.03% respectively. Crude oil dropped below 70$ and closed at 69.45$ a barrel as sign show an increase in oil inventories together with a decrease in demand. Gold (XAU) closed almost unchanged at 946$ an ounce. Today, Trade Balance is expected at -28.40B vs. -26.0B previously. Also today, investors are eyeing the Fed decision regarding the Interest Rate which is expected to stay at its current 0.25% rate.

EURO (EUR)

The Euro traded with no particular direction against the Dollar after falling for 5 days in a row, as traders wait for the FOMC decision today. German CPI released at 0% vs. -0.10% forecast. Overall, EUR/USD traded with a low of 1.4109 and with a high of 1.4185. Today, French CPI is expected at -0.40% vs. 0.10% previously and Industrial Production is expected at 0.40% vs. 0.50% previously.

EUR/USD - Last: 1.4135

Resistance

1.4190

1.4235

1.4275

Support

1.4100

1.4045

1.4000

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British Pound (GBP)

As most major yesterday, the Pound found itself trading on a tight range against the Dollar after dropping heavily for 3 days in a row, trading with a low of 1.6430 and with a high of 1.6522. Trade Balance in the UK fell below expectation coming at -6.5B. The UK housing market improved in July. Today, the BOE will release its Inflation Report.

GBP/USD - Last: 1.6460

Resistance

1.6530

1.6580

1.6650

Support

1.6435

1.6400

1.6340

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Japanese Yen (JPY)

The yen rose against all 16 major currencies as Asian stocks extended a global slide in equities, spurring demand for the relative safety of Japan’s currency. The Yen also gained for a third day versus the Euro after CIT group said it was delaying a quarterly report, reviving concern the commercial lender needs more time to raise funds. Overall, USD/JPY traded with a low of 95.75 and with a high of 97.17.

USD/JPY-Last: 95.45

Resistance

96.10

96.55

96.90

Support

95.25

94.85

94.50

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Canadian dollar (CAD)

The Canadian Dollar fell the most in seven weeks against the Dollar as global stocks dropped and traders pared bets on higher-yielding currencies before today's interest-rate decision by the US Federal Reserve. Overall, USD/CAD traded with a low of 1.0864 and a high of 1.1045. Today, Trade Balance in Canada is expected at -0.60B vs. -1.40B previously.

CAD/USD - Last: 1.1050

Resistance

1.1050

1.1095

1.1125

Support

1.0985

1.0945

1.0925

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