Forex Signals On The USD Show Greece Is Getting Serious Today

US Dollar Climbs Amid Continuing Concerns Over Greece


The US Dollar rose against other currencies on Tuesday, as worries that Greece could exit the euro zone cast a pall over investor confidence. EUR/USD declined to 1.1282, a fall of 0.38%, as any market exuberance was quashed by continuing concerns that negotiations between Greece and the European Union over Greece’s bailout and continuing high debt levels could reach a stalemate.



Greece sticks to election promises

The new Greek government remain defiant, with the new Prime Minister, Alexis Tsipras, once again indicating that he intends to stick to the government’s commitment to renegotiate the terms of Greece’s international bailout. The government has already indicated that they intend to turn an extension to the existing bailout, and instead are looking for a new agreement designed to meet the country’s capital needs through to the middle of the year.

UK posts positive manufacturing numbers

Despite the decline in the euro, the UK pound held its own against the greenback on Tuesday, hitting a high of 1.5250 before falling back to 1.5223. Forex signals support is expected at 1.1534, while upside is likely to be limited at 1.5354, a resistance level set on February 6. The strength in the pound was due in large part to a report from the Office of National Statistics, which indicated that manufacturing production in the UK climbed 0.1% in December, despite predictions of a fall of 0.1%.

Numbers from November were also lifted slightly, rising from an initial 0.7% rise to a 0.8% improvement. However, the positive news was somewhat dampened by further data from the same report that showed overall industrial production was down by 0.2% in the same month, despite expectations that it would rise by 0.1%. This follows on from a 0.1% fall in November.

Canadian dollar falls

The loonie fell against its counterpart to the south on Tuesday, in large part due to the absence of positive economic data. This contrasted with the greenback, with investors continuing to believe that the Federal Reserve would raise interest rates sooner rather than later in the wake of strong US jobs data last week. The Canadian dollar also declined versus the euro, with EUR/CAD climbing to 1.1438, a rise of 0.14%.

AUD/USD bucks the trend

In contrast to many of the major currencies, the Australian dollar posted gains against the greenback on Tuesday. According to the National Australia Bank, business confidence climbed last month compared to December. The positive news was further bolstered by data from the Australian Bureau of Statistics, which reported that house prices were up by 1.9% in Q4, 2014, slightly besting expectations that they would rise by 1.8%. Figures from Q3 were also revised, although in the opposite direction. The new number came in at 1.4% for Q3, a slight drop from earlier estimates of 1.5%.