UFXMarkets *Daily Forex Currency Trading News*20-August-2012

UFXMarkets *Daily Forex Currency Trading News*20-August-2012


Hello, it’s Monday, August 20, 2012, and
I’m Martin Smith with the daily outlook from UFX Markets. The Dollar advanced versus most majors on
speculation that the FED is expected to increase its monetary stimulus after better than expected
data released showed that Prelim Consumer Sentiment grew to 73.6 vs. the 72.5 expected,
boosting the prospect of stronger household spending this quarter. Wall Street closed
the trading day in the green after German Chancellor Angela Merkel supported the ECB
policy makers in their attempt to deal the debt crisis in Europe. The S&P 500 gained
0.19%, the NASDAQ rose by 0.46% and the Dow Jones advanced by 0.19%. Gold retained previous gains and advanced
slightly by 0.20%, closing at $1616 an ounce. Crude Oil reached a 3-month high as better
than expected U.S macro economic data, trading at 596.20 a barrel. The Euro declined slightly versus the dollar
on Friday amid concern that the ECB may disappoint investors by limiting the size of bond purchases
of Spain and Italy. Trading above the support level of 1.2280 will keep the momentum of
the pair positive, and the pair may test its strong resistance level of 1.2400 again. No
economic data is expected today. The Cable fell versus the Dollar following
the release of better than expected U.S. data that favored the greenback. GBP/USD is trading
in a daily channel between 1.5770 resistance and its 1.5520 support level and only a breakout
can set the long term trend for the pair. No economic data is expected today. The Canadian Dollar fell versus its U.S. counterpart
for a first time in four days after CPI data came out -0.1% worse than the expected 0.2%
showing that inflation slowed in July. Technically, the trend of the USD/CAD remains bearish as
long as the pair maintains its resistance level of 0.9920 and is expected to fall toward
support level at 0.9840. No economic data is expected today.

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