UFXBank -Daily Gold, Oil & Forex Currency News-12-October-2011

UFXBank -Daily Gold, Oil & Forex Currency News-12-October-2011


Hello, it’s Wednesday October 12 2011 and
I’m Martin Smith with the daily outlook from UFX Bank.
The US Dollar traded mixed versus most of the majors over concern with the European
debt crisis. Wall Street closed mixed as the NASDAQ advanced by 0.66% and the Dow fell
by 0.15%. Crude climbed to its highest level in two weeks to close at $86.20 a barrel.
However, Gold (XAU) fell by 0.6%, closing at $1,661 an ounce. Today, the FOMC Meeting
Minutes is expected. The Euro closed unchanged versus most of the
major currencies after Slovakia failed to pass the Rescue plan. “Troika” said today
that the IMF and the ECB will be transferring another aid package of 8 billion to Greece
at the beginning of November. Trading below the resistance level of 1.3700 will keep the
momentum of the pair negative, but if the pair breaks above this level, it may reach
1.4060 again. Overall, the EUR/USD traded with a low of 1.3564 and a high of 1.3683.
Today, ECB President, Trichet is expected to speak. The British Pound fell versus the US Dollar
after Manufacturing Production came out -0.3% worse than the expected -0.1%. The trend for
the pair remains bearish if it maintains its resistance level of 1.5730, but should the
pair break this it may reach 1.5950 again. Overall, the GBP/USD traded with a low of
1.5573 and a high of 1.5668. The Yen closed unchanged versus the US Dollar
and most majors. Core Machinery Orders came out better than expected 11% vs. 4.7% forecast.
Technically, the USD/JPY is trading within a narrow range with no clear long-term trend.
If the pair breaks below the 76.00 level, the trend will continue downwards. Today no
major economic data is expected. Canada’s dollar fell versus the greenback
as concern that European officials may fail to halt the region’s sovereign-debt crisis
cut demand for currencies tied to growth, and that the contagion may spread to banks.
Housing Starts came out 206K better than expected at 187K. The trend for the pair is bearish
if it maintains its resistance level of 1.0330. According to the 2-hour chart, the pair has
strong support at 1.0250. Well, that’s all for today. Be sure to visit
us at UFXBank.com, for simple, safe, and secure trading.

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