UFXMarkets *Daily Forex Currency Trading News* 11-April-2012

UFXMarkets *Daily Forex Currency Trading News* 11-April-2012


Hello, it’s Wednesday, April 11, 2012 and
I’m Martin Smith with the daily outlook from UFX Markets. Stock markets dropped for a fifth day as the
sell-off accelerated following Bernanke’s comments that the recovery is far from complete
and weak wholesale inventories. Dow Jones declined by 1.65%, Nasdaq by -1.83% and S&P500
by -1.71%. The US Dollar gained versus the high yielding
currencies and remained little changed versus the Euro and Pound after Bernanke’s comments
that the U.S economy has yet to fully recover spurred growth concerns. Gold (XAU) gained by 1% closing at $1,659
an ounce after Bernanke’s comments spurred demand for safety. With the weakening Dollar,
Gold is expected to rise if talks regarding QE3 resume. Crude Oil declined by 1.50%. Technically,
oil is trading in a downward channel and if it remains below 102.50 it is considered bearish.
Today, Crude Inventories are expected with 2.1M versus 9M prior. The EUR/USD now. Trading below the 1.32 resistance
level keeps the momentum of the pair bearish. Europe’s debt concerns are rising and cause
currencies which are considered to be a haven such as the Yen to rise. Italian and German
Bond auctions will be held during the day and could affect the Euro’s direction. Watch
the EUR/JPY which is close to its 7-week low over debt concerns. The GBP/USD continues its downtrend. Below
1.59 the pair is considered bearish. However, a break below 1.5800 could accelerate the
trend. No major economic data is expected today. In commodity linked currencies, the Australian
Dollar fell versus the Dollar and the Yen as demand for high yielding currencies dropped
over concerns with the European debt crisis. The pair keeps trading in a downward channel.
Breaking the strong support level of 1.0200 could cause it to test the next support level
of 1.0100.

Leave a Reply