UFXMarkets *Daily Forex Currency Trading News* 2-July-2012

Hello, it’s Monday, July 2 2012 and I’m Martin
Smith with the daily outlook from UFX Markets. Stocks rallied on Friday as risk appetite
rose following news that the Euro Zone is getting closer to solving its 30 month long
debt crisis. The NASDAQ rallied by 3% The Dow Jones by 2.20% and S&P 500 by 2.49%. The US Dollar weakened versus most majors
as risk appetite grew stronger following the EU leaders agreement to allow a 50% write
down on their Greek debt holdings. The EU move is expected to bring some stability in
the short-term. Today, ISM Manufacturing PMI is expected with 52.1 versus 53.5 prior. FOMC
Member Williams will speak in San Francisco. Gold is currently holding steady near its
$1,600 resistance level, and Crude Oil rallied by 9% closing at $84.50 The Euro rallied versus the Dollar and gained
versus the Pound after the EU summit ended on a positive note. The EUR/USD is expected
to continue with the bullish momentum as long as it is above the 1.2600 support level. The Cable gained versus the Dollar after the
EU summit ended and optimism came back to the markets. BOE is likely to announce the
expansion of its Asset Purchases from 325B to 375B on Thursday. The GBP/USD reached a
new resistance level of 1.5720 and if it sustains above 1.56 the trend is likely to continue
being bullish. The high yielding Australian Dollar was the
best performing currency on Friday after Commodities’ prices gained sharply. AUD/USD completed a
move of more than 250 pips in less than 24 hours. Today, RBA will release its interest
rate decision which is expected unchanged at 3.5%.

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