USD Dollar (USD) – The US Dollar weakened versus most major currencies as investors became more optimistic regarding the Greek Credit Swap negotiations, following remarks by the French Finance Minister. Both the NASDAQ and the Dow Jones declined by -0.09% as investors eye key earning releases from bellwethers such as Apple, later this week. Crude Oil gained by 1.51% closing at $99.81, following sanctions on Iran. Gold (XAU) reached a 6 week high after gaining 0.82% following Iran sanctions, closing at $1,677.70 an ounce. No major economic data is expected today.
Euro (EUR) – The Euro rallied to a 3 week high versus the Dollar after French Finance Minister, Baroin, said that there is progress in the negotiations between Greece and its private creditors. Stock exchanges in Europe finished higher, the DAX30 gained by 0.50% and the CAC40 by 0.51%. The EUR/USD is currently considered bullish as long as it remains above the 1.30 mark. The pair still faces many resistance levels around the 1.31 level. Today, German and French Flash Services and the Manufacturing PMI will be released. Industrial New Orders are expected with a -2.1% decline versus 1.8% previously.
EUR/USD – Last: 1.3020
| Resistance | 1.3080 | 1.3110 | 1.3150 |
| Support | 1.3000 | 1.2940 | 1.2880 |
British Pound (GBP) – The British Pound gained slightly versus the Dollar and the Yen following optimism in Europe regarding the Greek default swap. The Pound is being affected by speculations regarding a broadening of the British Quantitative Easing program. The FTSE 100 declined by -0.22% to 5,728.55. The GBP/USD continues to be bullish as long as it remains above the 1.55 support level. The pair is facing strong resistance around the 1.57 and 1.5750 levels. Today, Public Sector Net Borrowing is expected with 12.4B versus 15.2B previously. Investors await Wednesday’s MPC Meeting Minutes release to assess the possibility of a wider QE program.
GBP/USD – Last: 1.5560
| Resistance | 1.5600 | 1.5630 | 1.5700 |
| Support | 1.5525 | 1.5500 | 1.5450 |
Japanese Yen (JPY) – The Yen finished unchanged versus the Dollar and weaker versus the other majors as demand for the safe haven of the Yen kept declining following increased market optimism. The BOJ is expected to leave the interest rate unchanged at 0.10%. Technically, the USD/JPY has been trading in a channel between 76.60 and 77.30 and located near a strong support level according to the daily chart at 76.60. Today, the Trade Balance is expected with 0.36T versus 0.54T previously.
USD/JPY – Last: 77.00
| Resistance | 77.30 | 78.05 | 78.50 |
| Support | 76.60 | 76.00 | 75.55 |
Canadian Dollar (CAD) – The Canadian Dollar gained versus the US Dollar following market optimism regarding the European debt crisis and a rise in crude prices following the EU leaders’ decision to sanction Iranian oil. EU’s sanctions raise concerns of a disruption in oil supply from the Middle East that could push crude prices higher. The USD/CAD is on a downtrend with strong support around the 1.0075 level. Today, Core Retail Sales are expected with 0.2% versus 0.7% previously. Retail Sales are expected with 0.3% versus 1.0% previously.
USD/CAD – Last: 1.0085
| Resistance | 1.0160 | 1.0200 | 1.0275 |
| Support | 1.0050 | 1.0000 | 0.9980 |
