US Dollar (USD)

The Dollar did not manage to maintain its strength and fell against its most major trading counterparts after the initial jobless claims showed a third weekly reduction in the number of people collecting unemployment, boosting higher-yield demand. After 2 days of declining, Wall Street ended the day with gains. Dow Jones rose 0.90% and closed at 9150, the highest level since November of 2008 and NASDAQ closed by 0.84%. Crude oil soared, rising by more than 5%, closing at 66.7$ a barrel after the rally in the stock. Gold (XAU) also traded high and closed at the level of 37$ an ounce. Today, The GDP is expected at -1.3% vs. -5.5% previously.

EURO (EUR)

The Euro rose for the second day against the Dollar but despite strong rebound in equity markets that dragged dollar down against major counterparties, the Euro's recovery remained mild. The EUR/USD pair failed to break below the 1.4005 level but despite the recent strength in the Euro the pair remains trendless so far. The Euro is holding above 1.4060, which has become a strong support. Looking ahead, unemployment rate in the Euro zone is expected at 9.7%.

EUR/USD - Last: 1.4100

Resistance

1.412

1.415

 

Support

1.4005

1.3945

1.3915

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British Pound (GBP)

The Pound headed for a fifth month gains against the Dollar and broke a two-day decline against the Dollar and managed to strengthen against the Euro after nationwide HPI report showed British house prices climbed in July for a third month by 1.3%. Overall, GBP/USD traded at the low level of 1.6339 and a high of 1.6526.

GBP/USD - Last: 1.6510

Resistance

1.6525

1.6555

1.6587

Support

1.6455

1.6433

1.6405

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Japanese Yen (JPY)

The Yen fell against the Dollar, Euro and Pound as global stocks rose, spurring investors to buy higher-yielding assets. The yen may extend declines against major counterparts before the GDP report today that may show the U.S.'s economic contraction slowed. Overall, GBP/JPY is above 157.00 and rose to 158.15. EUR/JPY rebounded at 132.80 and jumped above 134.00 to 134.80. Unemployment rate was released today at 5.4%.

USD/JPY-Last: 95.45

Resistance

96.00

96.2

96.7

Support

95.25

94.83

94.65

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Canadian dollar (CAD)

The Canada's dollar climbed for the first time in three days against its US Dollar on the back of advances in commodities such as crude oil and global equities indicated risk aversion may be weakening. Overall, the pair traded with a low of 1.0803 and with a high of 1.0912. Today, the Canadian GDP is expected at -0.4% vs. -0.1% previously.

CAD/USD - Last: 1.0790

Resistance

1.0885

1.0925

1.101

Support

1.075

1.07

 

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