UFXMarkets *Daily Forex Currency Trading News* 21-May-2012

UFXMarkets *Daily Forex Currency Trading News* 21-May-2012


Stocks declined after Facebook shares rose
by less than expected and the Euro’s Greek exit question remains open. U.S stock indices
posted their worst loss for the year, with the S&P declining for 6 straight sessions.
S&P 500 declined by -0.74% NASDAQ by -1.24% and Dow Jones by -0.59%. The US Dollar weakened versus the Euro and
the Pound on Friday after selling pressure eased. The European debt crisis contagion
seems to worsen and the Dollar is expected to continue gaining versus the majors. Gold (XAU) gained by 1.21%, closing at $1594
as the uncertainty in the markets helped drive Gold higher. Crude prices continued falling
and eventually closed at $91 on Friday as high supplies and economic slowdown drive
prices lower. The Euro gained on Friday after bouncing from
oversold conditions during the week. Investors are eyeing the G-8 summit, as German and French
leaders are expected to meet and plan a rescue strategy for the Euro region. The EUR/USD
rose from its daily support level of 1.2630 and could continue higher. The main trend
is still downwards but if the pair breaks above 1.2850 this could reverse. The GBP/USD was unable to sustain below the
1.58 level and could retrace higher towards 1.60 again. Bear in mind the major trend of
the pair is bearish. The Australian Dollar keeps trading in a downward
channel as aversion from high yielding assets continues following global recession. The
AUD/USD channel resistance is at 0.99 and if the pair remains below that level it’s
expected to continue downwards.

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