UFXMarkets *Daily Forex Currency Trading News*31-July-2012

UFXMarkets *Daily Forex Currency Trading News*31-July-2012


Hello, it’s Tuesday, July 31, 2012 and I’m
Tony Christopher with the daily outlook from UFX Markets. We begin with the US Stock Market – Stocks
finished slightly lower on Monday as optimism regarding future stimulus moves by the ECB
and the Fed dwindled slightly. The Dow Jones and S&P500 were almost flat with 0.02% and
0.05% declines accordingly. Nasdaq declined by -0.41%. The US Dollar gained slightly versus most
majors as investor’s optimism faded slightly. The markets are eager to hear the FOMC Statement
on Wednesday to see what the Fed’s plan to stimulate the economy is. Today, CB Consumer
Confidence is expected with 61.5 versus 62.0, Chicago PMI is expected with 52.6 versus 52.9
prior. The Euro weakened slightly versus the Dollar
on lower optimism for the ECB’s big move. Spanish Flash GDP came out as expected with
-0.4%. Today, German Retail Sales are expected with 0.6% versus -0.3% prior. German Unemployment
Change is expected with 9K versus 7K prior. German Unemployment Rate is expected to show
a rise from 10.1% to 10.2% and European Unemployment Rate is expected to rise from 11.1% to 11.2%.
British Pound now – The Cable weakened versus the Dollar after a fall in Net Lending to
Individuals show a drop as economic activity is slowing down and the U.K is likely headed
to a triple dip recession. The Canadian Dollar gained versus the U.S
Dollar as a possible bond purchasing by the U.S is likely to weaken the U.S Dollar versus
his Canadian counterpart. USD/CAD is trading in a downward channel according to the daily
chart and is located on the bottom part of that channel which could bring a retracement
to the top of that channel. The pair is near the 1.00 support level which if broken could
lead the pair downwards to the 0.98 level. Today, GDP is expected with 0.2% versus 0.3%
and will be in the center of attention for the Canadian currency.
Finally in commodities–Gold finished unchanged at 1624$ an ounce. Speculations regarding
the Fed’s stimulus plan could cause a spike in Gold prices. Gold will remain bullish as
long as it is trading above the 1615$ support level.
Crude Oil weakened by 0.5% closing at 89.50$ a barrel. Technically, Oil is still above
the 61.80% Fibonacci retracement level according to the 4 hour chart. The Trend for Oil will
remain bullish as long as it is trading above the 89$ level.
Well, that’s it for today, I’m Tony Christopher for the daily outlook. Be sure to find out
more at UFX Markets.com.

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