Hello, it’s Monday, 27 February 2012 and I’m
Martin Smith with the daily outlook from UFX Markets.
The US Dollar fell versus most majors as reports showed an improving economic recovery and
the Greek aid package damping demand for safety. There was some optimism following the Greek
deal and optimism ahead of next week’s second liquidity tender by the ECB. In addition,
the U.S. data is improving and no doubt that’s adding to the positive sentiment. Stocks ended
mixed with the NASDAQ gaining by 0.23% and the Dow declining by -0.01%. Crude gained
by 1.00% and advanced above $109 a barrel for the first time in almost 10 months as
escalating tension with Iran threatens supplies, closing at $109.60 a barrel. Gold (XAU) declined
by -0.40% closing at $1,772 an ounce. Today, Pending Home Sales are expected to grow by
1.10% vs. -3.50% previously. The Euro rose versus the Dollar as an agreement
on a second international bailout for Greece reduced investor concern the region’s debt
crisis will worsen. The EUR/USD is currently considered bullish above the 1.3370 support
level. The pair faces its next resistance level around 1.3520. Overall, the EUR/USD
traded with a low of 1.3230 and with a high of 1.3485. Today, M3 Money Supply is expected
to grow by 1.80% vs. 1.60% previously. The British Pound rose for a second day against
the dollar after the government’s economic-growth report showed consumer spending rose more
than analysts forecast, boosting speculation the U.K. will avoid a recession. Technically,
the GBP/USD continues to be bullish as long as it remains above the 1.58 support level.
The pair is facing its next major resistance at the 1.5920 level. No economic data is expected
today. The Yen declined versus the Dollar reaching
its lowest level since November on signs of global growth prompted demand for higher-yielding
currencies. In addition, the Bank of Japan said this month it would expand its asset-purchase
program to 30 trillion yen ($372 billion) from 20 trillion. Technically, as long as
the USD/JPY is above the support level of 80.80 the momentum continues to be bullish.
Today, Retail Sales are expected to decline by -0.2%% vs. 2.5% previously.
The Canadian Dollar dropped against its U.S. counterpart even as crude oil, its biggest
export, climbed. The loonie fell against 14 of its 16 most- traded peers amid speculation
that higher oil prices will crimp American household consumption. That might weaken Canada’s
exports, about 75 percent of which go to the U.S. The USD/CAD is on a downtrend and a break
below the 0.9960 support level could lead to a fall in the pair. No economic data is