US Dollar (USD)

 Higher-yielding currencies slid versus the Dollar after more US citizens unexpectedly filed claims for jobless benefits last week, indicating companies are trying to cut costs further even as the economy stabilizes. The jobless claims rose to 576K in the last week of August from a revised 561K the week before. Wall Street closed on the positive side for the third day in a row after financial indicators confirmed the fact that the recession might be over soon. NASDAQ and Dow Jones rose by 1.0% and 0.76% respectively. Crude oil advanced by 0.16% closing at 72.54$ a barrel and Gold (XAU) decreased by 0.3% closing at 942$ an ounce. Today, Existing Home Sales is expected at 5.03M vs. 4.89M previously and Fed Chairman Bernanke will speak today.

EURO (EUR)

The Euro traded on a very tight range against the Dollar trading with a low of 1.4200 and with a high of 1.4275 after the initial jobless claims that came worse than forecast and gave support for the Dollar. Today, German Manufacturing PMI is expected at 47.10 vs. 45.20 previously and Manufacturing PMI is expected at 47.8 vs. 46.30 previously.

EUR/USD - Last: 1.4230

Resistance

1.4270

1.4305

1.4330

Support

1.4175

1.4135

1.4085

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British Pound (GBP)

 The Pound dropped versus the Dollar after Britain showed an 8 billion-Pound budget deficit in July, the largest for the month since records began in 1993. GBP/USD traded with a low of 1.6450 and with a high of 1.6605.

GBP/USD - Last: 1.6450

Resistance

1.6500

1.6600

1.6720

Support

1.6395

1.9325

 

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Japanese Yen (JPY)

 The Yen advanced against higher yielding currencies on concern toxic securities will continue to hurt U.S. banks, extending the global financial crisis. The Yen headed for a second weekly gain against the Euro after China was said to be planning to tighten capital requirements for banks, accelerating declines in stocks and boosting demand for Japan's currency as a refuge. All in all, USD/JPY traded with a low of 93.84 and with a high of 94.54.

USD/JPY-Last: 93.75

Resistance

94.60

94.95

95.30

Support

93.90

93.65

94.60

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Canadian dollar (CAD)

 The Canadian Dollar touched the strongest level this week, erasing earlier losses because of the CAD' strong exposure to oil. Overall USA/CAD traded with a low of 1.0863 and with a high of 1.0995. No economic data expected today

CAD/USD - Last: 1.0920

Resistance

1.1000

1.1040

1.1075

Support

1.0925

1.0885

1.0800

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