Hello, it’s Monday, October the 17 and I
am Natalie Woods with UFXMarkets daily news. The U.S Dollar weakened versus most majors
as investors shifted away from safe haven currencies into higher yielding assets. Stronger
than expected Retail Sales (1.1% Vs 0.5%) and more bets on the resolution of the European
debt crisis spurred investors towards riskier assets. Today, Empire State Manufacturing
Index is expected with -3.9 versus -8.8 prior, and Industrial Production is expected unchanged
with 0.2%. The Euro rallied versus the US Dollar and
the Yen as expectations regarding the possibility to solve the European debt crisis rose. G20
meeting over the weekend urged the Eurozone to finalize the aid plan to recapitalize its
banks and end the Greek Debt Crisis within a week. The EUR/USD rallied for the past 2
weeks but it is facing major resistance levels near 1.40.
The British Pound rose versus the Dollar following optimism regarding the European debt crisis.
The trend for the pair will remain bullish if it maintains its support level of 1.57,
but if the pair breaks that support it may resume its downtrend. Overall, the GBP/USD
traded with a low of 1.5720 and with a high of 1.5851.
The Yen declined versus Dollar and other majors, as investors turned towards higher yielding
assets over expectations the European debt crisis is close to a solution. Technically,
the USD/JPY is trading within a narrow range between 77.50 and 76 with no clear trend.
The Canadian Dollar gained versus the US Dollar as commodity linked currencies rallied after
stronger than expected retail sales in the US and more signs of global growth. The USD/CAD
is on a strong decline and is near oversold conditions according to the 4 hour RSI. Today,
Foreign Securities Purchases is expected with 9.23B versus 11.78B prior, and the Bank of
Canada will release its quarterly Business Outlook Survey.
Thank you for joining us today. For more information, please visit us at www.ufxmarkets.com. I am
Natalie Woods, wishing you happy trading