Daily Review 02/09/2010

The Dollar weakened against most major currencies after encouraging global data helped ease concerns over the global economic growth also the ADP report in US showed that Employers in U.S. Unexpectedly Cut 10,000 Jobs instead of -20K forecast in August boosted the stocks and commodities markets. NASDAQ and Dow Jones jumped by 2.97% and 2.54% respectively , crude oil rose by 2.4%, closing at 73.91$ a barrel, Gold (XAU) weakened by 0.2% , closing at 1248$ an ounce. Today, Unemployment Claims are expected to rise a bit from 743K to 745K, Fed Chairman Bernanke Testifies, Pending Home Sales are expected at -1.3% vs. -2.6% prior.

The Euro rallied against the Dollar owing to a good data from US which supported to buy higher assets around the world, also the Chinese Premier Wen Jiabao said that China and western countries should work together to enhance the world’s confidence in the euro and the European Union economy, cause a positive euro as well . As long the rate is above 1.2800 levels a long position is preferred and the momentum is bullish. Overall, EUR/USD traded with a low of 1.2662 and with a high of 1.2855.Today, ECB Press Conference, Interest Rate Decision is expected to remain unchanged at 1.0%,

The Pound rose against the Dollar after a report by ADP Employer Services showed U.S. companies cut 10,000 jobs last month, led the investors to be optimistic and to buy the British currency. The GBP/USD has been trading downwards from the begging of August and still trading below the 10 moving average on the daily chart, therefore the momentum is still bearish, the next support level on the one hour chart is located at 1.5400. Overall, GBP/USD traded with a low of 1.5336 and with a high of 1.5491. Today, Nationwide HPI is expected at -0.3% vs. -0.5% prior.

The Yen fell against most of its major currencies as reports showed manufacturing in the U.S. and China accelerated, spurring demand for higher yielding assets like stocks and commodities .The momentum of the USD/JPY is bearish, the next support on the daily chart is located at 83.50, therefore a short position is preferred. Overall, USD/JPY traded with a low of 83.66 and with a high of 84.66. No economic data expected today.

The Canadian Dollar strengthened for the first time this week versus the Dollar as global equities and commodities such as crude oil strengthened, making currencies tied to growth more attractive. As long the USD/CAD below 1.0550 levels a short position is preferred, the next support on the daily chart is located at 1.0480, if the price cross this level the trend will continue to be bearish. Overall, USD/CAD traded with a low of 1.0484 and with a high of 1.0652. No economic data expected today.