USD Dollar (USD) – The US Dollar gained versus most majors erasing early gains after the Greek aid package approval was digested by investors. Greece’s bailout will prevent it from declaring bankruptcy over the next month or two, but the question regarding the exit of Greece from the Euro remains open. US stock markets finished mixed, the Dow Jones rose by 0.12% and the Nasdaq declined by -0.11%. The Dow Jones briefly topped the 13,000 mark but finished at 12,965.69. Crude Oil continued gaining with a 2.19% rise, closing at $105.87 as investors fear Iran’s reactions regarding its oil exports. Gold (XAU) gained by 2%, closing at $1,759 an ounce. Today, Existing Home Sales are expected with a rise from 4.61M to 4.66M.
Euro (EUR) – The Euro erased early gains versus the Dollar after European Governments decided to aid Greece instead of calling for it to declare bankruptcy next month. Greece’s second bailout was approved, awarding it 130 billion Euros in aid. European Stock exchanges finished lower, the DAX30 declined by -0.58% and the CAC40 by -0.21%. The EUR/USD is currently considered bullish above the 1.31 support level and the pair faces its next resistance level around 1.33. Today European, French and German Manufacturing and Services PMI will be released. Industrial New Orders are expected with a 0.6% rise versus -1.2% previously.
EUR/USD – Last: 1.3230
| Resistance | 1.3300 | 1.3320 | 1.3350 |
| Support | 1.3150 | 1.3120 | 1.3050 |
British Pound (GBP) – The British Pound declined after the Euro Zone Finance Ministers’ agreement on Greece’s second bailout was digested by investors. The FTSE 100 declined by -0.29% at 5,928.20 and the GBP/USD continues to be bullish as long as it remains above the 1.5750 support level. The pair is facing its next major resistance at the 1.5920 level. Today, MPC Meeting Minutes will be released and are likely to give some indication regarding future asset purchasing plans of the BOE.
GBP/USD – Last: 1.5780
| Resistance | 1.5900 | 1.5930 | 1.5970 |
| Support | 1.5750 | 1.5700 | 1.5640 |
Japanese Yen (JPY) – The Yen continued declining versus the Dollar reaching near its lowest level since August the 4th as demand for the safety of the Yen continued to wane. Technically, the USD/JPY broke above its strong resistance level at 79.50 and the momentum continues to be bullish. No major economic data is expected today.
USD/JPY – Last: 79.75
| Resistance | 80.00 | 80.45 | 80.75 |
| Support | 79.50 | 79.00 | 78.75 |
Canadian Dollar (CAD) – The Canadian Dollar weakened versus the Greenback after Core Retail Sales came out with a 0.0% change versus the 0.1% expected, indicating slower economic activity. Investors fear Iran will halt oil exports to more European countries. The USD/CAD is still on a downtrend and a break below the 0.9890 support level could lead to a fall in the pair. No economic data is expected today.
USD/CAD – Last: 0.9970
| Resistance | 0.9980 | 1.0025 | 1.0050 |
| Support | 0.9900 | 0.9850 | 0.9800 |
