Forex Daily Outlook: USD Tops The Yen, Japan’s Surplus Helps

on May 10, 2013
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Later today, the Fed Chairman Ben Bernanke will speak, followed by the release of data on the Federal Budget Balance. The G7 are also scheduled to meet.

EUR/USD: since late in the trading session across the Atlantic, the euro seems to be drawing a downtrend. Currently trading at $1.3048, it just broke its resistance level of 1.3047. As the value of the USD pushes up, the euro will need more power to reach its highs of 1.3200 from a few days ago.
GBP/USD: currently trading at $1.5446, the pair seems to be moving under its resistance level of 1.5460. Yesterday’s news from the UK’s Monetary Policy Committee on keeping the benchmark rate the same, at 0.5 percent, and the data released on much better industrial production for the previous month seem powerless to stop the pound having a lacklustre session. Or maybe the pair is trading quietly as a result of UK forecasts for a negative trade balance, which will be released later today, is having a direct effect on the sterling.

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USD/JPY: during the Asian trading session this morning, the pair broke the 100.00 mark and seems poised for an uptrend. The depreciating yen, the weakest among the developing-nation currencies for this year, led to the highest current account surplus for March during a year period. Currently, the USD/JPY is trading at $100.92, seemingly retesting this support level. A short consolidation signal seems to be forming just below the 101.00 level. Will the pair shoot for new highs after the Chairman of the Fed Ben Bernanke speak later today?

AUD/USD: trading lower against its USD counterpart in early Asian sessions, the Aussie is currently at the 1.0052 mark. The pair seems to predictably reflect the news on a generally strengthening USD. Since the 1.0070 mark did not hold as a new support, the pair is straightforwardly heading towards a downtrend. The AUD/USD could well reach parity level today.

USD/CAD: since the positive news on lower US jobless claims this week, the USD moved up and is currently following a short-term uptrend pattern. The pair is trading at the 1.0087 mark already breaking its resistance level at 1.0090. Later news today from across the Atlantic could have a reverse impact: Canada is releasing its employment change and unemployment rate data while in the USA, the Fed Chairman Ben Bernanke will speak. Bernanke’s remarks are closely watched by the financial community.

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