US Dollar (USD)

The Dollar managed to regain its strength against it trading counterparties as stocks fell and crude oil slumped. President Obama spoke yesterday and said that the US is beginning to see the end of this recession. He added that the government has managed to halt the free fall and stabilize the financial institutions. The Beige Book added to the optimistic atmosphere by reporting that most of the central banks in the US are showing a decrease in the recession. Despite Obama's hopeful speech, NASDAQ and Dow Jones closed down by 0.4% and 0.3% respectively. Crude Oil had a strong downside move as it fell more than 5% and closed at the level of 62.89$ a barrel after crude oil inventories showed a surprising increase. Gold (XAU) also traded low and closed at the level of 929$ an ounce. Today, Initial Jobless Claims is expected at 570K vs. 554K previously.

EURO (EUR)

The Euro traded near a 2 week low versus the Dollar as stocks declined and before a German unemployment report today that might show unemployment rose in Europe's largest economy to the most since 2007, damping the appeal of the region's assets. German CPI was released lower than expected at -0.1%. The Euro also fell against the British Pound. EUR/GBP fell below 0.8600 to 0.8550 reaching a one-week low.

EUR/USD - Last: 1.4060

Resistance

1.4110

1.4175

1.4205

Support

1.4000

1.3945

1.3915


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British Pound (GBP)

The Pound fell against the Dollar after the GBP/USD pair is still facing some selling pressure. The pair failed to confirm levels above 1.6400. The GBP/USD traded at the low level of 1.6344 and a high of 1.6468. Mortage Approvals in the UK came out lower that forecast at 47.6K. Today, Nationwide Housing Price Index expected at 0.3% vs. 0.9% previously.

GBP/USD - Last: 1.6390

Resistance

1.6440

1.6470

1.6495

Support

1.6350

1.6310

1.6270


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Japanese Yen (JPY)

The Yen fell against the Dollar after rebounding at 94.00 during the Asian session. USD/JPY rose 0.60% from the opening price. The pair did not follow the decline in U.S. stocks. Against European currencies the Yen recovered previous losses during the American session and ended mixed. Overall, The USD/JPY traded at a low level of 94.01 and a high of 95.36. Industrial Production was released at 2.4% vs. 2.5% forecast.

USD/JPY-Last: 95.05

Resistance

95.40

95.65

95.80

Support

94.60

94.30

94.05


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Canadian dollar (CAD)

The Canadian Dollar kept losing ground against the Dollar for the second day after reaching a 10 month high as crude oil falls and stocks decline. The pair traded with a low of 1.0792 and with a high of 1.0933.

CAD/USD - Last: 1.0895

Resistance

1.0950

1.1010

1.1115

Support

1.0825

1.0790

1.0750


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