April 4, 2011 (Coal Geology): Daily FOREX Review for April 4: The Dollar mostly weakened versus the major currencies
USD Dollar (USD) – The Dollar mostly weakened versus the major currencies after the Unemployment Rate came out at 8.80%, better than the expected 8.90% and the Nonfarm Payrolls came out last Friday at 230K, better than the expected 203K, which makes investors prefer higher risk currencies over the USD. The Finance markets in the U.S. closed positive as the Dow Jones rose by 0.46% and the NASDAQ gained 0.31%. Crude Oil rose by 1.1% and closed at $107.94 a barrel, due to positive data from the US and instability in North Africa. Gold (XAU) fell by 0.8% and closed at $1,428.90 per ounce. Today, Chicago Fed President Evans will speak.
Euro (EUR) – The EUR/USD reversed sharply on Friday, erasing losses and posting its highest weekly close since January of 2010. The pair did not reach fresh highs over the week but finished between 1.4220/30. The most important event for the euro this week is the interest rate decision that will come out on the 7th, where expectations are that there will be a rate hike of 25 basis points (0.25%). The Unemployment Rate came out at 9.90%, which is unchanged from the previous report. The EUR/USD is facing a resistance at 1.4280 and once it breaks this level, it will continue to 1.4400. Overall, EUR/USD traded with a low of 1.4062 and with a high of 1.4245. Today, no major economic data is expected.
EUR/USD – Last: 1.4220
British Pound (GBP) – The Pound declined against the greenback at the beginning of last Friday after the Manufacturing PMI came out at 57.10, worse than the expected 60.90. But, when the NFP came out, the pair jumped more than 130 pips and closed the week at 1.6107. Holding above the critical support zones of 1.6080 will push the pair higher once again. Overall, GBP/USD traded with a low of 1.5971 and with a high of 1.6132. Today, no major economic data is expected.
GBP/USD – Last: 1.6135
Japanese Yen (JPY) – The USD/JPY rose on Friday to 84.79, reaching its highest level in 6 months. The pair retreated afterwards towards 84.00, but still managed to post a weekly gain of more than 250 pips, the biggest since November of 2009. The momentum is bullish, but faces a strong resistance at 84.80. Overall, USD/JPY traded with a low of 83.12 and with a high of 84.73. No economic data is expected today.
USD/JPY – Last: 84.22
Canadian dollar (CAD) – The Canadian Dollar strengthened against the U.S. dollar throughout the last week as Crude Oil prices climbed to its highest level since Sept. 2008, reaching $108.40 a barrel. If oil prices will continue to strengthen, it may bring the pair to new record lows. In addition, the GDP is expected to rise by 0.50%, as it had previously. Overall, USD/CAD traded with a low of 0.9625 and with a high of 0.9707. Today, the BOC Business Outlook Survey is expected.
USD/CAD – Last: 0.9623