USD soars on weakening EURO
CURRENCY TRADING SUMMARY – 8th August 2008 (00:30GMT)
·U.S. Dollar Trading (USD) took another leg up as the recent USD rally continued. US data was mixed with weekly Jobs claims soaring to a six year high of 455K. Pending homes sales surprised to the upside though coming in at 5.3% in June vs. expectations of -1%. Oil was volatile but ended up on supply concerns from a fire in Turkey. In the U.S. share markets, the NASDAQ was down 22 points (0.95%) and the Dow Jones was down 224 points (1.93%). Crude Oil closed up $1.44 ending the New York session at $120.02 per barrel. Looking ahead, Q2 labor Costs expected at 1.5% (previous 2.2%) and Productivity at 2.5% (previous 2.6%).
·The Euro (EUR) was sold heavily as ECB President talked about slowing growth in the ECB post rate press conference. The ECB held rates at 4.25% and although Trichet spoke about inflation the market responded to comments on growth. Overall the EUR/USD traded with a low of 1.5310 and a high of 1.5505 before closing the day at 1.5310 in the New York session. UPDATE EURO BREAKS 1.5300
·The Japanese Yen (JPY) gained as risk aversion entered the market on weaker US stocks. The USD/JPY held up well but EUR/JPY and GDP/JPY fell heavily as their respective majors slid. Overall the USDJPY traded with a low of 109.13 and a high of 109.81 before closing the day around 109.40 in the New York session.
·The Sterling (GBP) fell with the Euro as the Bank of England also held rates. No statement was released but recent economic data made the bias a cut in coming months. The Halifax House Price Index fell -1.7% last month. Overall the GDP/USD traded with a low of 1.9420 and a high of 1.9538 before closing the day at 1.9440 in the New York session.
·The Australian Dollar (AUD) fell as the USD strengthened but held up well against other currencies after the July Employment report surprised to the upside. July Unemployment change was +10.9K vs. +5K expected. Overall the AUD/USD traded with a low 0.9050 and a high of 0.9130 before closing the US session at 0.9080. UPDATE AUSSIE BREAKS 0.9000
·Gold (XAU) fell heavily bowing to USD strength although was supported by Oil. Overall trading with a low of USD$868.60 and high of USD$884.90 ending the New York session at USD$872 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.5145 |
1.5200 |
1.5235 |
1.5400 |
1.5500 |
|
USD/JPY |
108.60 |
109.05 |
109.60 |
109.70 |
109.95 |
|
GBP/USD |
1.9430 |
1.9355 |
1.9370 |
1.9440 |
1.9545 |
|
AUD/USD |
0.8925 |
0.8955 |
0.9010 |
0.9075 |
0.9130 |
|
XAU/USD |
858.00 |
970.00 |
871.00 |
886.00 |
894.60 |
·Euro – 1.5235
Initial support at 1.5200 (Aug 8 low) followed by 1.5145 (Mar 5 low). Initial resistance is now located 1.5400 (Aug 6 low) at followed by 1.5500 (round number).
·Yen – 109.60
Initial support is located at 109.05 (Aug 6 hrly low) followed by 108.60 (Jun and Feb tops). Initial resistance is now at 109.70 (AUG 7 high) followed by 110.12 (Jan 9 high).
·Pound – 1.9370
Initial support at 1.9355 (May 14 low) followed by 1.9340 (Jan 22 low). Initial resistance is now at 1.9440 (Aug 8 high) followed by 1.9545 (Aug 6 high).
·Australian Dollar – 0.9010
Initial support at 0.8955 (Mar 20 low) followed by 0.8925 (Feb 13 low). Initial resistance is now at 0.9075 (Aug 8 high) followed by 0.9130 (hourly resistance).
·Gold – 871
Initial support at 870 (Aug 5 low) followed by 858 (Jun 12 low). Initial resistance is now at 886 (Aug 6 high) followed by 894.6 (Aug 5 high).
