USD Dollar (USD) – The U.S. currency fell against most of the major currencies in Forex trading after benchmark Treasury yields reached a six-month high last week on speculation that an extension of tax cuts will boost U.S. growth. The NASDAQ fell by 0.48% and the Dow Jones rose by 0.16%. Crude oil rose by 0.9% and closed at $88.61 a barrel. Gold (XAU) rose by 1% and closed at $1398 an ounce. Today, the Core Retail Sales (MoM) is expected at 0.60% vs. 0.40% previously and Retail Sales are expected at 0.50% vs. 1.20%. The Interest Rate Decision is expected unchanged at 0.25% and the FOMC statement is expected.
Euro (EUR) – The euro strengthened against the Dollar after one week of falling. European Union leaders, this week, will discuss the creation of a permanent mechanism to shore up over-indebted countries as the European Central Bank tries to hammer out plans to aid the region’s weakest lenders. As long as the pair trades below the 1.3500 levels, a short position is still preferred according the daily chart. Overall, EUR/USD traded with a low of 1.3182 and with a high of 1.3433. Today, German ZEW Economic Sentiment is expected at 3.90 vs. 1.80 previously.
EUR/USD – Last: 1.3394
British Pound (GBP) – The Pound rose against the Dollar after the PPI Input came out at 0.90%, better than the expected 0.50%. The next resistance of the GBP/USD, according to the daily chart, is located at 1.5900. If the rate breaks above this rate, a long position is preferred. If the rate breaks below the 1.5700 levels, the pair could decline to 1.5600 levels. Overall, GBP/USD traded with a low of 1.5719 and with a high of 1.5897. Today, the CPI is expected unchanged at 3.20%.
GBP/USD - Last: 1.5864
Japanese Yen (JPY) –The Yen rose against the Dollar on Monday. The Bank of Japan’s forecast for an end to deflation in 2011, and 35 trillion yen ($417.8 billion) of spending, have done little to change the thinking in the bond market, where investors see eight more years of falling prices. As long as the USD/JPY is trading above 83.00 levels, a long position is preferred and the next resistance level is located at 84.40. Overall, USD/JPY traded with a low of 83.10 and with a high of 84.35. Today, industrial production is expected unchanged at -1.80%.
Canadian dollar (CAD) the Looney rose for a 4th day as gains in commodities and stocks made currencies related to economic growth more attractive. The resistance level of the USD/CAD on the 1 hour chart is located at 1.0150, and if the price breaks above this level, the momentum will become positive for the US Dollar. Overall, USD/CAD traded with a low of 1.0028 and with a high of 1.0107. Today, Labor Productivity is expected at 0.30% vs. -0.80%.