Ufxmarkets - Daily gold & forex trading news - 21 - March - 2012

The US Dollar strengthened against many of the high yielding currencies and commodities following rumors that China’s steel production is slowing. Wall Street closed negative as the S&P decreased by 0.30% and the Dow by 0.52%. Oil fell by 2.35% and closed at $106.38 a barrel. Gold declined by -0.80% to $1650.57 an ounce following Federal Reserve Chairman Bernanke's comment that the opposes some analysts’ opinion that the U.S economy should return to the Gold Standard. Today, Existing Home Sales is expected to come out 4.61M vs. 4.57M previously The Euro finished unchanged versus the Dollar and stronger versus other high yielding assets as Chinese production shows signs of a slowdown. The IMF said Greece may require a third bailout package with greater concessions and more debt restructuring. EUR/USD crossed above its 1.32 resistance level and above the 100-day moving average and if it remains above 1.32 this could lead to a rally. No major economic data is expected today. The British Pound remained unchanged versus the Dollar after CPI came out as expected with 3.4% and RPI better than expected with 3.7%. GBP/USD is trading in a channel between 1.5650 and 1.5900, with the pair currently at the top level of the channel. A break above 1.5900 could lead to a rally. Today, Public Sector Net Borrowing is expected with 5.2B versus -10.7B prior. The Yen continues to decline versus the Dollar as its safe haven status is further eroded in the face of more fears of intervention by the BOJ. Technically, the USD/JPY trend remains bullish and as long as the pair stays above 83.00 the trend is expected to continue. Today, the Trade Balance is expected with -0.34T versus -0.61T prior. The Canadian Dollar fell versus the Dollar following rumors of the slowdown in China’s steel production. Chinese growth concerns sapped demand for high yielding currencies such as the Canadian and Australian Dollar and caused Oil prices to drop sharply. The USD/CAD is trading within a channel between 0.9950 and 0.9860. A break below the lower support level could lead to a rally in the Canadian currency. Today, the Leading Index is expected with 0.5% versus 0.7% prior.