USD Dollar (USD) – The Dollar weakened against most of the major currencies after macro economic data in the U.S boosted demand for higher yielding assets as Housing Starts came out at 0.6M, better than the expected 0.55M. The Core PPI also grew, coming out at 0.5%, which is better than the expected 0.2%. The Stock Markets in the U.S. closed positive as the Dow Jones rose by 0.5% and the NASDAQ gained 0.76%. Crude Oil tested the $84 support zone once again, and jumped by 1.1%, ending the day above the $85 a barrel. Gold (XAU) also kept the positive momentum and closed above the $1375 an ounce. Today, Initial Jobless Claims are expected at 403k vs. 383k previously, the CPI is expected at 0.3% vs. 0.5% previously, the Philadelphia Fed Manufacturing Index is expected at 21 vs. 19.3 previously, and Fed Chairman Ben Bernanke is expected to testify as well.

Euro (EUR) – The euro gained versus the dollar as it was attempting to approach the 1.36 area after the FED’s minutes were released, which signaled on unchanged conditions in the markets. Holding above the 1.3550 support level might push the pair above the 1.36 zones. Overall, EUR/USD traded with a low of 1.3461 and with a high of 1.3587. Today, the Current Account is expected at -6.1B vs. -11.2B previously.

EUR/USD – Last:  1.3583

Resistance

1.3550

1.3620

1.3740

Support

1.3430

British Pound (GBP) – The pound was among the only currencies losing gains to the greenback in Forex trading as the BOE Gov, Mervyn King, mentioned that Interest rates will probably stay low to boost the local economy. The Claimant Count Change came out at 2.4k, worse than the expected -3.3k and thus halting Sterling from advancing. Holding above the 1.6080 support level might push the pair higher to 1.62 areas. Overall, GBP/USD traded with a low of 1.5985 and with a high of 1.6184. Today, CBI Industrial Trends Orders are expected at -9 vs. -16.

GBP/USD – Last: 1.6102

Resistance

1.6170

Support

1.6120

1.6070

1.5980

Japanese Yen (JPY) – The Yen traded mostly unchanged against the dollar in a tight range of 50 pips, fluctuating between the 83.4 to 84 zones and attempting to determine a further trend. Only breaking those boundaries will fuel a trend, otherwise we expect to see the pair unchanged in those levels. Overall, USD/JPY traded with a low of 83.48 and with a high of 83.96. No economic data is expected today.

USD/JPY-Last: 83.57

Resistance

83.95

Support

83.50

83.10

82.60

Canadian dollar (CAD) – The Canadian dollar gained against the U.S dollar after positive macro-economic data in the U.S. spurred demand for commodity linked assets as well. The Foreign Securities Purchases data came out at 9.63B, better than the expected 7.22B, which also supported the Looney. Only breaking the support level of 0.9840 will extend the decline in the pair, otherwise a rebound back to parity might be seen. Overall, USD/CAD traded with a low of 0.9841, with a high of 0.9900. Today, Wholesale Sales are expected at 1.9% vs. 1.2% previously.

USD/CAD – Last: 0.9841

Resistance

0.9900

0.9920

0.9985

Support

0.9840

 

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