Hello, it’s Wednesday 7 March 2012, and I’m
Martin Smith with the daily outlook from UFX Markets. The US Dollar finished stronger versus the
majors and declined versus the Yen as risk aversion grew following more signs of slowing
down in Europe and fear of a Greek default. U.S Stock markets fell, with the Dow dropping
by 200 points with -1.57% change and Nasdaq by -1.36% following Greek default concerns.
Crude Oil fell by 1.90% closing at $104.70 a barrel, and Gold (XAU) by -1.73% to close
at $1,674.50 an ounce. Today, ADP Non-Farm Employment Change is expected with 204K versus
170K prior and Crude Oil Inventories are expected with 1.0M versus 4.2M prior.
The Euro fell to a two-week low as investors keep shunning European assets. The European
economy shrank by 0.3% in the last quarter and investors still await Greek private creditors
to approve debt restructuring. The EUR/USD is bearish below the 1.33 resistance level.
The pair faces its next support level around 1.30. No major European economic releases
are expected today. The British Pound fell versus the Dollar after
global risk aversion grew following fears of Greek default and slowing down in the economy
as China updated its growth outlook and the EU economy shrank by 0.3%. The FTSE 100 declined
by -1.86% at 5,765.80. GBP/USD continues to be bearish as long as it remains below the
1.5850 resistance level. The pair is facing its next major support at the 1.5650 level.
No major U.K. economic data is expected today. The Yen gained versus the Dollar and other
majors as risk aversion rose following concerns of a slowing down in the global economy. Technically,
the USD/JPY broke above its strong resistance level at 80.00 and the momentum continues
to be bullish. Today, Final GDP is expected with -0.20% versus -0.60% prior.
The Canadian Dollar weakened versus the Greenback breaking through equality levels as risk aversion
rose following concerns over a slowing global economy. Ivey PMI came out better than expected
at 66.5. The USD/CAD is near equality levels and is considered bullish above the 1.00 area
but faces strong resistance at 1.0050. Today, Building Permits are expected with -3.1% versus