Daily Review 09/03/2010

USD Dollar (USD)

The Dollar remained mostly unchanged versus the majors after no major economic releases and markets ended almost flat. The Federal Reserve said it will use money funds for reverse repos when it begins draining reserves. NASDAQ gained by 0.25% and Dow Jones weakened by -0.13% on light volume narrow range trading. Crude Oil gained by 0.33% closing at 81.77$ a barrel. Gold (XAU) weakened by 0.99% closing at 1,123.6$ an ounce. No major economic data expected today.

EURO (EUR)

The Euro remained unchanged versus the Dollar as no major economic news was released. German Industrial Production came out weaker with 0.6% versus 1.1% forecast. French President Sarkozy said the Euro Region will help stand behind Greece, should they need any assistance. Sarkozy warned speculators from betting against the Euro. Overall, EUR/USD traded with a low of 1.3606 and a high of 1.3704. EUR/USD is still trading in a daily channel between 1.3780 and 1.3450 waiting for a catalyst to break out of this range. No major economic data expected today.
EUR/USD - Last: 1.3615

British Pound (GBP)

The Pound weakened versus the Dollar erasing its gains from the NFP on Friday as risk aversion rose slightly. Overall, GBP/USD traded with a low of 1.5031 and a high of 1.5196. GBP/USD trend continues to be bearish and still not in oversold RSI conditions. Today, Trade Balance is expected with -6.9B versus -7.3B prior.
GBP/USD - Last: 1.5010

Japanese Yen (JPY)

The Yen gained slightly versus the Dollar after Friday\'s NFP data effects waned and risk aversion rose slightly. Overall, USD/JPY traded with a low of 90.15 and a high of 90.66. USD/JPY has retraced after touching resistance at the 50 period daily moving averages near 90.6. This resistance could lead the pair back to its downtrend. Today, Core Machinery Orders are expected weaker with -3.8% versus 20.1%.
USD/JPY-Last: 90.05

Canadian Dollar (CAD)

The Canadian Dollar remained unchanged versus the Dollar after commodities ended mixed and markets almost flat. Overall, USD/CAD traded with a low of 1.0270 and a high of 1.0276. USD/CAD has been trading near yearly lows at 1.02. The downtrend is slowing down and could head to a reversal upwards. No major economic data expected today.
USD/CAD - Last: 1.0280