Daily Review 11/03/2010

The Dollar fell against most majors as crude oil touched a two-month high, boosting the currencies of commodity producers. NASDAQ and Dow Jones advanced by 0.78% and 0.03% respectively, Crude oil increased by 0.65% closing at 82.02$ a barrel, Gold(XAU) fell by 1.7% closing at 1122.3$ an ounce, as uncertainty in the European markets lowered. Today, Trade Balance is expected at -40.9B vs. -40.2B prior, Initial Jobless Claims is expected to decline from 469K to 456K.

The Euro gained against the Dollar and touched the strongest level versus the Yen in 2 weeks, after Portugal’s cost of borrowing declined in a sign that investors are less worried that Greece’s debt crisis will spread. EUR/USD main trend continues to be downwards till it breaks above 1.3750 the momentum is bearish. Overall, EUR/USD traded with a low of 1.3544 and with a high of 1.3679.Today, ECB Monthly Report will be released.

The Pound weakened versus the Euro and is trading near the lowest level in 10 months against the Dollar after U.K. factory production unexpectedly fell in January for the first time in 5 months, a sign manufacturing is struggling to shake off the recession. In addition, Fitch Ratings said that Britain is taking too long to cut its budget deficit and Concerns rise that U.K. elections this year may give the nation its first minority government since 1974. GBP/USD trend will keep being bearish as long as the pair is trading below 1.52. Overall, GBP/USD traded with a low of 1.4872 and with a high of 1.5014.Today, Consumer Inflation Expectations will be released.

The Yen declined against all majors as stocks rose and uncertainty surrounding Greece\'s debt lowered, driving investor demand for currencies tied to growth. GDP came out at 0.9% vs. the 1% forecast. The USD/JPY broke the resistance at 90.0 levels and it\'s above the 20 moving average on the daily graph therefore a long position is preferred. Overall, USD/JPY traded with a low of 89.94 and with a high of 90.82. No economic data expected today.

The Canadian Dollar traded near its strongest level in almost 5 months as investors bet the nation’s economy will be among the strongest during the global recovery. The USD/CAD has been trading downwards since last week, as long as the pair is below 1.06 a short position is preferred. Overall, USD/CAD traded with a low of 1.0217 and with a high of 1.0292. Today, Trade Balance is expected at 0.3B vs. -0.2B prior, BOC Gov Carney will speak.