UFXMarkets Daily Forex Currency Trading News 23-October-2012

Hello, it’s Tuesday, October 23, 2012, and
I’m Martin Smith with the daily outlook from UFX Markets. The US Dollar fell versus most majors after
the Spanish Prime Minister extended an electoral majority in his home region of Galicia. At
the same, Moody’s Investors Service downgraded five Spanish regions. Attention is now turning
to this week’s Federal Reserve policy meeting Wednesday for its impact on the currency markets
and the wider financial sector. No economic data is expected today. Wall Street closed
the trading day flat on Monday after a late-day bounce, as worries about slower global growth
hitting corporate sales were offset by earnings that beat expectations. The S&P gained by
0.04%, NASDAQ strengthened by 0.38% while Dow Jones added 0.02% to its value. Gold rose by 0.40%, closing at $1,728. Crude
Oil fell to its lowest level in two weeks, closing at 89.00$ a barrel. The Euro gained versus the Dollar. Expectations
that Spain will request a bailout that will trigger the European Central Bank’s bond-buying
program aimed at reducing the country’s borrowing costs have helped the bullish trend. The EUR/USD
will remain bullish as long as it is trading above 1.2980. No economic data is expected
today. The Cable rose for the first time in three
days against the dollar after an industry report showed the number of U.K. business
insolvencies slid in September, boosting optimism the economic recovery is around the corner.
The GBP/USD is bullish above 1.5970 and the pair may again test resistance at 1.6070. The Canadian Dollar closed unchanged against
its U.S. counterpart. Earlier today the Loonie touched its lowest level against the Dollar
in more than 10 weeks amid speculation the Bank of Canada will put less emphasis at a
policy meeting tomorrow on raising interest rates. USD/CAD will remain bullish as long
as it is trading above 0.9880. Today, BOC Rate Statement is expected to for release.

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