UFXBank -Daily Gold, Oil & Forex Currency News-04-October-2011

UFXBank -Daily Gold, Oil & Forex Currency News-04-October-2011


Hello, it’s Tuesday October 4, 2011 and I’m
Martin Smith with the daily outlook from UFX Bank. The US Dollar strengthened against most of
the major currencies as concern about Europe’s debt crisis overshadowed higher-than-estimated
U.S. economic data. Treasury bonds rallied as the Federal Reserve bought longer-term
debt. At the same time, ISM Manufacturing PMI came out 51.60 vs. 50.50 forecast. This
shows the economy is growing slowly, but not going into recession. Wall Street closed negative
as the NASDAQ fell by 3.29% and the Dow Jones declined by 2.36% due to high concern over
the Greek debt crisis. Crude oil fell by 2.68% – the lowest level in more than a year – and
closed at $76.20 a barrel. Gold (XAU) rose by 1.90%, closing at $1,661 an ounce. Today,
Factory Orders are expected to grow by 0.20% vs. 2.40% previously. The Euro fell to a 10-month low against the
U.S Dollar and to more than a decade low against the Yen as risk aversion intensifies and stocks
extend losses on Wall Street. In addition, the incoming European Central Bank President
Mario Draghi said a lack of confidence may be among the reasons for lenders’ “funding
problems”. Trading below the resistance level of 1.3480 will keep the momentum of the pair
negative, but if the pair breaks above this, it may reach 1.4060 again. Overall, the EUR/USD
traded with a low of 1.3162 and a high of 1.3380. The British Pound fell for a second day against
the Greenback as traders judged a surprise expansion of U.K. manufacturing as insufficient
to keep the Bank of England from providing further stimulus for the economy. The trend
for the pair remains bearish if the pair maintains its resistance level of 1.5730, but if it
should break that resistance it may reach 1.5950 again. Overall, the GBP/USD traded
with a low of 1.5420 and a high of 1.5582. The US Dollar fell against the Yen after the
Bank of Japan said today its quarterly Tankan index of sentiment increased to 2 in September
from – 9 in June. Technically, trading below 76.80 will keep the trend bearish and the
pair may test support at 76.30. Today, no economic data is expected. The Canadian Dollar fell the most since October
2008 as Europe’s finance leaders prepared to weigh the risk of a Greek debt default.
As a result Canadian stocks fell, led by energy companies and banks. The trend for the pair
will continue to be bullish if the pair maintains its support level of 1.0350. Today, no economic
data is expected. Well, that’s all for today. Be sure to visit
us at UFXBank.com, for simple, safe, and secure trading.

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