UFXMarkets *Daily Forex Currency Trading News* 5-June-2012

UFXMarkets *Daily Forex Currency Trading News* 5-June-2012


Hello, it’s Tuesday, 5 June 2012 and I’m
Martin Smith with the daily outlook from UFX Markets. Wall Street was mostly flat on Monday’s
trading as calm returned to the markets after Friday’s selloff. The NASDAQ gained by 0.46%
The Dow by -0.14% and S&P by 0.01%. The US Dollar continued to weaken versus most
majors as Friday’s weak NFP and Monday’s weaker than expected Retail Sales raised prospects
for QE3. Today, ISM Non-Manufacturing PMI is expected with 53.7 versus
53.5 prior. Gold remained unchanged versus the Dollar
after a calm day in the world markets. Technically, Gold’s strong move on Friday created a reversal
pattern in the Daily chart which if it continues could lead it back to $1700 and above. Crude
Oil gained by 1.20% closing at $84.15. Technically, the Crude Oil outlook remains bearish as long
as the rate remains below $85. The Euro climbed for a second day versus the
Dollar on optimism that European leaders are getting closer to reaching an agreement to
extend banking cooperation in the Euro region. Technically, EUR/USD continued climbing and
reached a resistance level at 1.25. The Cable remained unchanged versus the US
Dollar as thebank holiday brought low volume and low volatility to the market. Technically,
the GBP/USD needs to close above 1.5425 on the daily chart in order to confirm a bullish
reversal. If the pair remains below this level, it will likely continue with its downtrend
towards 1.52. Today is a bank holiday in the U.K, and trading on the FTSE will be closed
in observance of the Queen’s Diamond Jubilee. The Canadian Dollar weakened versus the Dollar
reaching a six month low as worsening European debt is reducing global growth. Canada’s
Central Bank is expected to leave rates unchanged at 1%. Technically, the pair has reached a
strong resistance level at 1.0450.

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