UFXMarkets *Daily Forex Currency Trading News*16-August-2012


Hello, it’s Thursday, August 16, 2012, and
I’m Martin Smith with the daily outlook from UFX Markets. The US Dollar traded mixed versus most majors
due to stronger than expected U.S industrial production. Wall Street finished the trading
day mixed with the Dow declining by 0.06%, but Nasdaq and the S&P 500 rallying by 0.46%
and 0.09% respectively. All the data points to a continuing refusal by the Fed to stimulate
the economy with QE. Gold rose by 0.20%, closing at $1603 an ounce,
and Crude Oil reached a three-month high after the Energy Department reported a decline in
supply amid rising demand and a growth in Middle East tension , to close at 94.35$ a
barrel. The Euro weakened versus most of the major
currencies on speculation that the Swiss National Bank sold currency amid a record increase
in its foreign-exchange holdings last month. Trading above 1.2330 will keep the momentum
of the pair negative. Overall, the EUR/USD traded with a low of 1.2263 and with a high
of 1.2342. The Cable gained versus the Dollar after positive
UK jobs data and the Bank of England minutes that showed policymakers did not discuss an
interest rate cut. GBP/USD is trading in a daily channel between the 1.5770 resistance
and the 1.5470 support level and a breakout from that range will set the long term trend
for the pair. Today, Retail Sales are expected to stay unchanged vs. 0.10%. The Canadian Dollar climbed to its highest
level since May versus its U.S. counterpart amid speculation North American economic growth
will sustain the nation’s exports. Technically, the trend of the USD/CAD remains bearish as
long as the pair maintains its resistance level of 0.9940. Today, Manufacturing Sales
are expected to grow by 0.30% vs. -0.40% previously.

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