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Daily Review 08/12/2009

Discussion in 'Forex Daily News & Outlook' started by UFXBank research, Dec 8, 2009.

  1. UFXBank research

    UFXBank research New Member

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    USD Dollar (USD)


    The Dollar continued Friday's momentum and gained versus most majors after no major news was released. Chairman Bernanke said the weak employment and tight credit will cause a slow expansion. NASDAQ and Dow Jones ended almost flat moving by -0.22% and 0.01% respectively after Chairman Bernanke said it is too early to declare the recovery will last. Crude weakened by -1.96% closing at 73.99$ a barrel as OPEC ministers flag steady output and Gold (XAU) dropped by -0.22% closing at 1158.8$ an ounce on a stronger Dollar. Today, IBD/TIPP Economic Optimism is expected with 49.5 versus 47.9 prior.

    EURO (EUR)


    The Euro reached a monthly low versus the Dollar breaking below the 1.48 support level but unable to keep below it. The pair has crossed and remained below the 50 day moving average for the first time in 8 months supporting the Dollar rebound. German Factory Orders came out weaker with -2.1% versus 0.6% expected. Overall, EUR/USD traded with a low of 1.4755 and with a high of 1.4904. Today, German Industrial Production is expected with 1.1% versus 2.7% prior.

    EUR/USD - Last: 1.4840

    Resistance 1.4900 1.4970 1.5020
    Support 1.4775 1.4735 1.4685
    [​IMG]

    British Pound (GBP)


    The Pound remained unchanged versus the Dollar and gained slightly versus the Euro as investors await Wednesday announcements from Bank of England. Overall, GBP/USD traded with a low of 1.6312 and a high of 1.6515. Today, Manufacturing Production is expected with 0.5% versus 1.7% prior. Industrial Production is expected with 0.5% versus 1.6% prior. NIESR GDP estimate will be released.

    GBP/USD - Last: 1.6460

    Resistance 1.6500 1.6550 1.6600
    Support 1.6390 1.6330 1.6275
    [​IMG]

    Japanese Yen (JPY)


    The Yen gained versus the Dollar as slight declines in world markets along with the Dollar rally lowered risk appetite. Japanese Current Account came out weaker with 1.38T versus 1.6T expected. M2 Money Stock came out weaker with 3.3% versus 3.5% expected. Overall, USD/JPY traded with a low of 89.04 and a high of 90.42 and EUR/JPY traded with a low of 132.36 and a high of 134.36. Today, Final GDP is expected with 0.8% versus 1.2% prior.

    USD/JPY-Last: 89.35

    Resistance 89.75 90.10 90.75
    Support 89.00 88.50 88.00
    [​IMG]

    Canadian Dollar (CAD)


    The Canadian Dollar gained versus the Dollar after Building Permits jumped by 18% versus 1.1% expected. Overall, USD/CAD traded with a low of 1.0482 and a high of 1.0649. Today, Bank of Canada will announce the Interest Rate Decision expected to remain at 0.25%. Housing Starts are expected with 159K versus 157K prior.

    USD/CAD - Last: 1.051

    Resistance 1.0585 1.0645 1.0690
    Support 1.0480 1.0450 1.0430
    [​IMG]
    UFX Bank Research
     
  2. Rider

    Rider New Member

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    The euro was steady against the dollar at $1.4728, not far from a low of $1.4667 hit on Tuesday according to Reuters data, its weakest since early November.

    Traders said the euro was likely to see support above its 100-day moving average around $1.4630. Gains on equity markets also helped the euro off its lows. European shares were up 0.8%.

    Any gains for the euro, however, were small in comparison to those made by the Australian and New Zealand dollars.

    This prompted some analysts to speculate that the market could be switching from the recent trend of trading on risk sentiment, which has seen the euro tend to gain in tandem with higher-yielding currencies like the Australian dollar.

    "Interest rates are becoming a more important factor and the market is looking more at fundamentals now," said You-Na Park, Commerzbank analyst in Frankfurt.

    The Australian dollar rose 0.8% against the dollar to $0.9158, while the New Zealand dollar gained 1.2% to $0.7272, hitting its highest in a week, with both bolstered by expectations interest rates will rise.
     
  3. Rider

    Rider New Member

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    Republic Federal Bank was closed Friday by federal regulators, bringing the total number of U.S. failed banks this year to 131, the Federal Deposit Insurance Corporation said.

    The four offices of the Miami-based bank will reopen Monday as branches of 1st United Bank, which is based in Boca Raton, Fla.

    Customers of the failed bank are protected. The Federal Deposit Insurance Corp., which has insured bank deposits since the Great Depression, currently covers accounts up to $250,000.

    1st United will acquire all of the failed bank's $352.7 million deposits. It will also buy $267.1 million of the $433 million worth of assets Republic Federal had on its books as of late September.
     
  4. Rider

    Rider New Member

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    President Obama pressed Wall Street bankers at the White House on Monday, urging them to make more loans and modify mortgages to help taxpayers who propped their banks up with federal bailouts.

    "My main message in today's meeting was very simple: America's banks received extraordinary assistance from American taxpayers to rebuild their industry," Obama said. "Now that they're back on their feet, we expect an extraordinary commitment from them to help rebuild our economy."

    The president was expected to pressure the nation's top dozen bank chief executives to open up the lending spigots to help the economic recovery. He was also said to be urging execs to curb compensation, and to stop gouging customers with high credit card rates and hidden overdraft fees.

    Obama said he also took bankers to task for lobbying "vigorously" against parts of the financial legislation to reshape the regulatory system and prevent future financial crises.

    "Short-term gains are of little value to our banks if they lead to long-term chaos in the economy," he said. "I made very clear that I have no intention of letting their lobbyists thwart reforms necessary to protect the American people."

    But critics question the impact of such a meeting, since the federal government has lost its leverage over the banks that repaid bailout money -- $116 billion so far. Earlier today, Citigroup announced they struck a deal to repay their $20 billion TARP loan.

    Policymakers have little power over bankers who have their own priorities, namely, making money.
     
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