Forex Market Update - page 6
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Forex Market Update 11Abr14
This morning, the greenback is trading mostly lower against most of the major currencies.
The EUR is mostly steady against the USD as traders did not react to the German consumer inflation data, which came in-line with market expectations for March. Yesterday, the ECB President, Mario Draghi hinted that the ECB is ready to start QE to prevent prices from staying too low for too long time in the region. Separately, ECB’s Peter Praet and Vitor Constancio also highlighted the ECB’s readiness to act to boost the region’s inflation rate.
In Japan, the minutes from the BoJ’s March 10-11 meeting indicated that the economy along with the consumer prices are moving in line with the central bank’s forecast. Additionally, the minutes also projected the economy to continue its moderate pace of expansion in future despite the recent sales-tax hike.
In a noteworthy event, Fitch upgraded Portugal’s rating to 'Positive' from 'Negative and raised its growth projections.
Yesterday, in the New York session, the USD traded mostly lower against the key currencies. However, the greenback pared some of its initial losses after initial jobless claims in the US fell to the lowest level in seven years last week and after the US posted the smallest budget deficit since 2000 in March.
The BoE, at its April policy meeting, kept its policy stance intact by maintaining its interest rate at 0.5% and keeping its QE package unchanged at £375.0 billion.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3887 against the USD, tad higher from the New York close. In economic news, Germany’s consumer price index rose in-line with market expectations for March while France's current account deficit narrowed in February, supported by a decline in the nation’s trade deficit. During the session, the pair traded at a high of 1.3906 and a low of 1.3886. Yesterday, the EUR traded 0.13% higher against the USD in the New York session, and closed at 1.3886. However, dovish comments from some top ECB officials kept the currency’s gains in check.
The pair is expected to find its first support at 1.3858 and first resistance at 1.3911.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6767 against the USD, 0.09% lower from the New York close. Earlier today, the CB leading economic index in the UK rose 0.4% in February, slower than a 0.7% rise in the previous month. During the session, the pair traded at a high of 1.6788 and a low of 1.6767. Yesterday, the British Pound traded marginally higher versus the Dollar in the New York session, and closed at 1.6782. The BoE kept its interest rate unchanged at a record-low 0.5% and maintained the size of its asset purchase program at £375.0 billion.
The pair is expected to find its first support at 1.6749 and first resistance at 1.6790.
USD JPY
The USD is trading at 101.58 against the JPY at 9:40 GMT this morning, 0.09% higher from the New York close. Overnight, the minutes from the BoJ’s March meeting projected moderate recovery to continue in Japan, adding that currently the economy and consumer prices are moving in line with the central bank’s forecast. During the session, the pair traded at a high of 101.88 and a low of 101.39. In the New York session yesterday, the USD traded 0.35% lower against the JPY, and closed at 101.48. The JPY advanced as soft economic releases from China spurred fresh demand for safe-haven assets.
The pair is expected to find its first support at 101.27 and first resistance at 101.94.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8761 against the Swiss Franc, marginally lower from the New York close. Early morning, a survey from Bloomberg revealed that majority of the economists believed the Swiss National Bank to defend its cap on the Swiss Franc for at least another year. During the session, the pair traded at a high of 0.8767 and a low of 0.8756. In the New York session yesterday, the USD traded 0.24% lower against the CHF, and closed at 0.8763.
The pair is expected to find its first support at 0.8743 and first resistance at 0.8787.
USD CAD
At 9:40 GMT, the USD is trading at 1.0928 against the CAD, 0.07% lower from the New York close. During the session, the pair traded at a high of 1.0942 and a low of 1.0931. Yesterday, the USD traded 0.17% higher against the CAD in the New York session, and closed at 1.0936. The Canadian Dollar declined even as the Statistics Canada reported that price of new Canadian homes rose 0.2% (MoM) in February, topping expectations of a 0.1% gain and compared to January's 0.3% increase.
The pair is expected to find its first support at 1.0888 and first resistance at 1.0955.
AUD USD
The AUD is trading at 0.9415 against the USD, at 9:40 GMT this morning, tad higher from the New York close. On the economic front, data from China, Australia’s largest trading partner, showed that annual consumer inflation rate rose less than expected last month while producer prices for March fell for the 25th straight month in annual terms. During the session, the pair traded at a high of 0.9419 and a low of 0.9372. AUD traded slightly higher against the USD in the New York session, and closed at 0.9411, as traders cheered upbeat Australian employment data for March.
The pair is expected to find its first support at 0.9366 and first resistance at 0.9460.
Gold
At 9:40 GMT, Gold is trading at $1318.60 per ounce, marginally lower from the New York close. A report from India, world’s second largest importer of gold, showed that gold and silver imports dropped 40% to $33.46 billion in FY 2014. This morning, Gold traded at a high of $1322.00 and a low of $1314.00 per ounce. In the New York session yesterday, the yellow metal traded tad higher, and closed at $1319.00, as a decline in the US equities lured investors to the safe-haven commodity. However, SPDR Gold Trust reported that its holdings fell 0.26 tons to 806.22 tons on Thursday.
Gold has its first support at $1313.43 and first resistance at $1324.33.
Silver
Silver is trading at $20.05 per ounce, 0.07% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $20.08 and a low of $19.91. Silver traded 0.55% lower against the USD in the New York session, and closed at $20.04. However, a weaker US Dollar and broad gains in the prices of industrial metals kept the commodity’s losses in check.
Silver has its first support at $19.84 and first resistance at $20.33.
Crude Oil
At 9:40 GMT, Oil is trading at $103.16 per barrel, 0.20% lower from the New York close, hurt by the latest batch of lackluster economic data from China and easing concerns on supply from Libya. This morning, Oil traded at a high of $103.40 and a low of $103.01. Yesterday, Oil traded 0.07% higher in the New York session, and closed at $103.40, benefitted by a monthly report from OPEC that indicated more than half a million per day fall in its oil production last month.
It has its first support at $102.89 and first resistance at $103.54.
Economic Snapshot
UK construction output rose at a slower pace in February
The Office for National Statistics reported that on an annual basis, construction output in the UK rose 2.8% in February, compared to a revised 5.7% rise in the previous month.
UK CB leading economic index rose at a slower pace in February
The CB leading economic index in the UK advanced 0.4% in February, following a revised 0.6% increase recorded in the previous month.
German final consumer price index rose in line with the preliminary estimate in March
The Federal Statistical Office Germany reported that on an annual basis, the final consumer price index in Germany increased 1.0% in March, in line with the preliminary estimate and compared to a 1.2% rise reported in the previous month. Meanwhile, on an annual basis, the final harmonized consumer price (HICP) index in Germany rose 0.9% in March, in line with the preliminary estimate, following a 1.0% rise in the previous month.
German wholesale price index declined in March
The Federal Statistical Office of Germany has reported that on an annual basis, the wholesale price index in Germany fell 1.7% in March, compared to a 1.8% decline reported in the previous month.
France current account deficit narrowed in February
Current account deficit of France narrowed to €1.4 billion in February, following a revised deficit of €3.7 billion in the previous month.
Spain CPI fell less than expected in March
On an annual basis, Spain’s final consumer price index fell 0.1% in March, following a flat change recorded in the previous month. Meanwhile, on an annual basis, Spain’s final harmonized consumer price (HICP) index dropped 0.2% in March, compared to 0.1% rise recorded in the previous month.
China consumer price index rose as expected in March
On an annual basis, China’s consumer price index (CPI) increased 2.4% in March, in line with market expectations, compared to a 2.0% rise recorded in the previous month.
China producer prices declined more than expected in March
On an annual basis, China’s producer price index fell 2.3% in March, compared to a 2.0% fall recorded in the previous month. Market had expected the producer price index to fall 2.2% in March.
Happy pips.
Weekly Forex Update
The minutes of the Federal Open Market Committee’s (FOMC) latest policy meeting took center stage last week and it influenced trading in currencies and commodities.
The US Dollar took a breather after the minutes of FOMC meeting revealed a more dovish stance than expected, prompting traders to shun the greenback. The minutes revealed that the Federal Reserve (Fed) policymakers were of the opinion that an interest rate hike would have to wait until 2015 or later. Additionally, officials unanimously agreed to scrap the 6.5% unemployment threshold for raising interest rates.
However, losses in the greenback were capped following the release of positive US economic data. The Thomson Reuters/Michigan consumer sentiment index rose in April to its highest level since July 2013, highlighting that the US consumers were more upbeat about the economy at start of the second quarter. Moreover, the number of Americans filing new claims for unemployment benefits fell sharply for the week ended April 5 to the lowest level since May 2007. Additionally, the monthly budget deficit narrowed more than expected in March.
The Euro jumped last week, as positive comments from few European Central Bank (ECB) officials helped ease traders’ concerns surrounding deflation risk in the bloc. The Bundesbank President and the ECB’s governing council member, Jens Weidmann downplayed deflation risk stating that the Euro-area’s risk of decline in consumer prices is low and any unconventional measures to avoid deflation would have to meet many conditions. Providing a further boost to investors risk appetite, reports indicated that Greece raised €3 billion in its first bond auction since 2010, sending a major signal that the Euro-zone debt crisis is fading.
The Pound gained traction following a spate of positive domestic macroeconomic data released last week that suggested that nation’s economic recovery is on track.
The Japanese Yen registered gains against the greenback, after the minutes of the Bank of Japan’s (BoJ) policy meeting revealed that the board members shared the view that the nation was on the path of economic recovery and that they were on the right track to counter deflation. The minutes further indicated that the policymakers did not see an imminent need for additional stimulus.
Commodity currencies including the Loonie, the Aussie and the Kiwi rose last week amid the broad dollar weakness.
The yellow metal recorded gains as traders snapped up the metal after the Federal Reserve's latest meeting minutes signaled that interest rates are unlikely to rise in the near future.
EUR USD
Last week, the EUR traded 1.31% higher against the USD and closed at 1.3885. The Euro began the week on a positive note, following comments from two eminent ECB officials, Ewald Nowotny and Yves Mersch, who stated that additional monetary easing measures are not imminent to fight low inflation in the region, citing that the strengthening economy could itself reduce the danger of deflation in the bloc. Moreover, another member, Jens Weidmann echoed similar views and indicated that he saw no risk of deflation spiral taking hold in the Euro-zone and further added that the pick-up in the bloc's economic recovery would eventually cause the inflation rate to gradually rise. The Euro further gained, after news that Greece successfully sold 5-year notes in the bond market. Additionally, the Fitch Ratings raised its outlook on Portugal to “Positive” from “Negative”, citing a falling budget deficit and sturdy economic recovery. During the week, the pair traded at a high of 1.3906 and a low of 1.3697. The pair is expected to find its first support at 1.3753, with the next support expected at 1.3620. The first resistance is at 1.3962 and the next at 1.4038.
Ahead this week, the Euro area inflation report will attract significant market attention along with industrial production and German ZEW sentiment data.
GBP USD
In the last week, GBP traded 0.95% higher against the USD and closed at 1.6733, as upbeat industrial and manufacturing output in the UK boosted investor sentiment, while UK’s trade deficit narrowed as imports fell more sharply than exports. Also, the Conference Board’s leading economic index rose in February, signaling that the recovery in the nation is set to continue in coming months. Moreover, the Britain’s economy got a double boost in the previous week. The National Institute of Economic and Social Research (NIESR) reported that the nation’s economy grew at its fastest quarterly rate since early 2010, in the first quarter of 2014. Also, the International Monetary Fund raised the country's growth forecasts and stated that the UK is set to be the world's fastest-growing major advanced economy in 2014. In an another key event, the Bank of England (BoE), kept its interest rate unchanged at a record-low 0.5%, citing a slack in the domestic labor market. The pair traded at a high of 1.6822 and a low of 1.6565 in the previous week. GBPUSD is expected to find its first support at 1.6591, with the next at 1.6450. Resistance exists first at 1.6848, and then at 1.6964.
In the week ahead, UK’s consumer price inflation and employment data would be crucial for determining short term trend in the Pound.
USD JPY
The USD traded 1.62% lower against the JPY and closed at 101.62 in the last week, following the release of the minutes from the Fed’s March 18-19 policy meeting that dampened expectations that the central bank would start raising its interest rates in the near future. Moreover, the Japanese Yen gained after the minutes of the BoJ’s latest policy meeting indicated that policymakers agreed that the Japanese economic recovery and inflation are moving in line with the central bank’s expectations and that the policy makers are unlikely to resort to further easing measures in the near term. Additionally, the minutes revealed that consumer spending would not decline following the sales tax hike in April, as the domestic labor market has shown the signs of improvement lately. The pair traded at a high of 103.35 and a low of 101.32. The pair is expected to find its first support at 100.84, with the next support expected at 100.07. The first resistance is at 102.87 and the next at 104.13.
Market participants would keep a tab this week on domestic industrial output and consumer sentiment data.
USD CHF
The USD backpedalled against the Swiss Franc, declining 1.79% last week to close at 0.8761, following the release of dovish Fed meeting minutes. The Swiss Franc gains came following the release of better-than-expected economic data in Switzerland. Annual consumer prices in the nation unexpectedly remained flat in March, providing relief to the Swiss National Bank policymakers as it indicated that the economy rebounded from deflationary pressures. Real retail sales grew 1.0% (YoY) in February, following a 0.1% decline in the previous month. Additionally, the State Secretariat for Economic Affairs (SECO) reported that on a non-seasonally adjusted basis, the unemployment rate in Switzerland dropped to 3.3% in March, in line with market expectations, compared to a rate of 3.5% reported in February. During the period, the pair traded at a high of 0.8925 and a low of 0.8742. The first support is at 0.8694, and the next at 0.8626. Resistance exists first at 0.8877, and then at 0.8992.
With a light economic calendar, Swissy traders would focus on global economic news for further guidance.
USD CAD
Last week, the USD fell marginally against the CAD and closed at 1.0980, as traders reduced their exposures in the safe currency after the latest FOMC minutes gave hints that policymakers are not inclined to adopt tighter monetary policy measures in the immediate future. The Canadian Dollar started the week on a positive note, after a survey by the Bank of Canada (BoC) indicated that the outlook for investment and employment in the nation firmed slightly in the first quarter of 2014. In a separate report, the Canadian housing starts fell more-than-expected in March, while building permits declined sharply in February, stoking fears over the health of the Canadian housing market. In noteworthy event, the IMF upgraded forecast for Canada’s economic growth for 2014, but cautioned about the nation’s weaker than expected exports, high household debt loads and high house prices which would affect the economic outlook. USDCAD traded at a high of 1.1011 and a low of 1.0857 in the previous week. The first support is at 1.0888, with the next at 1.0795. The first resistance is at 1.1042, while the next is at 1.1103.
This week, the Canadian inflation data will be on investors’ radar. Besides, interest rate decision by the BoC will likely hold the key for determining the near term trend for the Loonie.
AUD USD
AUD traded 1.13% higher against the USD last week, and closed at 0.9397, buoyed by strong domestic economic data. Unemployment rate in Australia fell to a seasonally adjusted 5.8% in March, from previous month’s level of 6.1% while the economy added 18,100, better than expectations for an addition of 5,000 jobs. Meanwhile, another report showed that consumer inflation expectations in Australia rose to 2.4% in April, the highest level since July last year. The Westpac consumer confidence index improved in April, while the National Australia Bank report revealed that nation’s business confidence dipped in March. During the week, the pair traded at a high of 0.9463 and a low of 0.9253. The first support is at 0.9279, and the next at 0.9161. The first resistance is at 0.9489, and the next at 0.9581.
Apart from key macro releases from the US this week, the Reserve Bank of Australia’s latest policy meeting minutes will be on investors’ radar. Additionally, the Chinese first quarter GDP and February’s retail sales and industrial production data would also prove a key determinant for the Aussie.
Gold
In the prior week, Gold traded 1.13% higher against the USD and closed at USD1318.42, after the Fed's latest meeting minutes signaled that policy makers were in no hurry to lift interest rates. Also, market speculation that China might resort to stimulus measures to lift its economy, following the recent spate of dismal economic data provided support to gold prices. Moreover, gold prices were underpinned by heightened geopolitical tension as Ukraine's government attempted to reassert control in the eastern city of Slaviansk, after pro-Russian separatists seized power. The yellow metal traded at a high of 1324.63 and a low of 1295.74 in the previous week. Gold is expected to find support at 1301.23 and the next at 1284.04. The first resistance is at 1330.12, while the next is at 1341.82.
In the week ahead, market participants will keenly await data from the US, especially the consumer price inflation and retail sales report for hints on the strength of the nation’s recovery. Moreover, speeches from influential Fed policymakers will be keenly awaited.
Crude Oil
Oil prices traded 2.57% higher against the USD in the last week and closed at USD103.74, amid broad weakness in the US Dollar and lingering tensions between Russia and the West over Ukraine. Moreover, oil prices also found some support after Libya’s oil protection force stated that it had not regained full control of the Zueitina oil port from the rebels. Also, the Energy Information Administration’s (EIA) monthly energy outlook report forecasted that crude average price would rise to $95.60 a barrel in 2014, compared to its previous forecast of $95.33. Moreover, the EIA trimmed its projections on the US crude production for 2014 and 2015. Meanwhile, the secretary general of the Organization of the Petroleum Exporting Countries (OPEC), Abdullah al-Badri, stated that current crude prices are stable and the market has ample supply to meet demand, signaling that existing output ceiling would remain in place at its June meeting. Oil traded at a high of 104.44 and a low of 99.92 in the previous week. Oil has its first major support at 100.96, while the next support exists at 98.18. The first resistance is at 105.48 and the next at 107.22.
Traders would keep an eye on the situation in the Ukraine, as any flare-up in the situations could send oil prices higher.
Happy pips.
Forex Market Update 15Abr14
This morning, the greenback is trading mostly higher against most of the major currencies, ahead of the US consumer inflation data and few planned speeches from top Fed officials, including the Fed Chief, Janet Yellen.
The EUR is trading lower against the USD, after the German economic sentiment fell for the fourth straight month in April. However, the EUR pared some of its initial losses after Euro-zone trade surplus widened more-than-expected in February and after the ZEW survey on Euro-zone’s economic sentiment and Germany’s current situation came in better than market estimates for April. Yesterday, ECB’s Christian Noyer hinted that the ECB stands prepared to use every instrument in its mandate, including unconventional ones, to combat the risk of prolonged low inflation in the economy.
The AUD lost ground against its US counterpart after the minutes from the RBA’s April policy meeting indicated that a stubbornly high Aussie could dampen Australia’s economic growth even as the central bank believed that its policy measures were appropriate to foster sustainable growth in demand and to assist in achieving 2-3% inflation target.
Yesterday, in the New York session, the greenback traded mostly lower against the key currencies. However, later during the day, the USD advanced against its counterparts after the US retail sales recorded their largest gain in 1-1/2 years in March.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3803 against the USD, 0.12% lower from the New York close, after the German ZEW economic sentiment fell for the fourth month in a row in April. However, ZEW index for Germany’s current conditions and Euro-zone’s economic sentiment surpassed expectations for April while Euro-zone trade surplus widened in February. During the session, the pair traded at a high of 1.3822 and a low of 1.3800. Yesterday, the EUR traded tad higher against the USD in the New York session, and closed at 1.3819.
The pair is expected to find its first support at 1.3783 and first resistance at 1.3829.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6727 against the USD, tad higher from the New York close. However, earlier during the day, the GBP fell after UK’s annual consumer inflation rate declined to a four-year low 1.6% in March and after the BRC retail sales in Britain registered its biggest annual fall since April 2013 in March. During the session, the pair traded at a high of 1.6732 and a low of 1.6694. Yesterday, the British Pound traded 0.13% higher versus the Dollar in the New York session, and closed at 1.6725.
The pair is expected to find its first support at 1.6676 and first resistance at 1.6761.
USD JPY
The USD is trading at 101.81 against the JPY at 9:40 GMT this morning, marginally lower from the New York close. Earlier today, Japan’s Chief Cabinet Secretary, Yoshihide Suga revealed that Prime Minster, Shinzo Abe did not ask the BoJ Governor, Kuroda for additional easing measures at their meeting on Tuesday. During the session, the pair traded at a high of 102.01 and a low of 101.75. In the New York session yesterday, the USD traded marginally lower against the JPY, and closed at 101.85.
The pair is expected to find its first support at 101.63 and first resistance at 102.01.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8811 against the Swiss Franc, 0.15% higher from the New York close. In economic news, the Swiss producer and import prices registered a monthly flat reading in March, following a 0.4% (MoM) drop in the preceding month. During the session, the pair traded at a high of 0.8817 and a low of 0.8800. In the New York session yesterday, the USD traded flat against the CHF, and closed at 0.8798.
The pair is expected to find its first support at 0.8788 and first resistance at 0.8825.
USD CAD
At 9:40 GMT, the USD is trading at 1.0993 against the CAD, 0.26% higher from the New York close, ahead of the release of Canada’s manufacturing shipment data, which could provide an insight into the trend in market demand. During the session, the pair traded at a high of 1.1002 and a low of 1.0964. Yesterday, the USD traded 0.10% lower against the CAD in the New York session, and closed at 1.0964. On the economic front, the Teranet-National Bank composite house price index came in flat in March.
The pair is expected to find its first support at 1.0955 and first resistance at 1.1017.
AUD USD
The AUD is trading at 0.9394 against the USD, at 9:40 GMT this morning, 0.29% lower from the New York close, after the minutes from the RBA’s April policy meeting highlighted policymakers’ concerns on the effect of a stubbornly high Aussie on Australia’s economic growth. During the session, the pair traded at a high of 0.9425 and a low of 0.9385. AUD traded 0.15% higher against the USD in the New York session, and closed at 0.9421.
The pair is expected to find its first support at 0.9372 and first resistance at 0.9421.
Gold
At 9:40 GMT, Gold is trading at $1312.10 per ounce, 1.17% lower from the New York close, amid speculation that improving US economy could dampen demand for safe-haven assets. A report from World Gold Council projected Chinese demand for gold to increase by 25.0% to at least 1,350 tons by 2017. This morning, Gold traded at a high of $1328.40 and a low of $1307.50 per ounce. In the New York session yesterday, the yellow metal traded 0.29% higher, and closed at $1327.70, as social unrest in Ukraine bolstered the safe-haven appeal of the metal.
Gold has its first support at $1302.60 and first resistance at $1326.50.
Silver
Silver is trading at $19.91 per ounce, 0.40% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.99 and a low of $19.70. Silver traded 0.15% higher against the USD in the New York session, and closed at $19.99.
Silver has its first support at $19.71 and first resistance at $20.10.
Crude Oil
At 9:40 GMT, Oil is trading at $103.23 per barrel, 0.30% lower from the New York close, ahead of the US weekly crude inventory report and amid speculation that return of oil supply from Libya could ease concerns on the supply outlook. This morning, Oil traded at a high of $103.58 and a low of $102.91. Yesterday, Oil traded 0.26% lower in the New York session, and closed at $103.54. However, escalating tensions in Ukraine weighed on the demand-prospects of the commodity.
It has its first support at $102.70 and first resistance at $103.96.
Economic Snapshot
UK retail price index rose as expected in March
On an annual basis, the retail price index in UK rose 2.5% in March, in line with market expectations and compared to a 2.7% increase recorded in the previous month.
UK ONS house price index rose in February
On an annual basis, the ONS house price index in the UK rose 9.1% in February, compared to a 6.8% rise recorded in the previous month.
UK consumer price index rose in line with market expectation in March
National Statistics reported that on an annual basis, the UK consumer price index rose 1.6% in March, in line with market estimates and compared to a 1.7% rise recorded in the previous month.
Euro-zone trade surplus widened more than expected in February
The non-seasonally adjusted trade surplus in the Euro-zone rose to €13.6 billion in February, more than market forecasts and compared to a revised surplus of €0.8 billion recorded in the previous month.
Euro-zone economic sentiment fell less than market estimate in April
The ZEW survey - economic sentiment in the Euro-zone dropped to a level of 61.2 in April, more than market expectation of a level of 60.7 and compared to a reading of 61.5 reported in the previous month.
German ZEW sentiment index fell more than expected in April
The ZEW survey - economic sentiment index in Germany dropped to a level of 43.2 in April, more than market expectation of a level of 45.0 and compared to a reading of 46.6 reported in the previous month. Meanwhile, the ZEW survey - current situation index in Germany climbed to a level of 59.5 in April, compared to a reading of 51.3 reported in the previous month.
Swiss producer and import prices remained flat as expected in March
On a monthly basis, producer and import prices in Switzerland remained flat in March, in line with market expectations and following a decrease of 0.4% recorded in the preceding month.
RBA minutes reiterated central bank’s policy stance
The minutes of the Reserve Bank of Australia’s (RBA) monetary policy meeting held on 1 April revealed that interest rates in the nation are likely to remain stable in the near term if the economy continues to improve.
China M0 money supply rose less than forecast in March
On an annual basis, M0 money supply in China rose 5.2% in March, less than market expectation of a 7.0% rise and compared to a 3.3% increase recorded in the previous month.
China new Yuan loans advanced more than expected in March
The People's Bank of China reported that the Chinese financial institutions issued CNY1050.0 billion worth of new Yuan loans in March, more than market expectations and compared to CNY644.5 billion of loans issued in the previous month.
China foreign exchange reserves rose in the Q1 2014
China’s foreign exchange reserves rose to $3.95 trillion in the first quarter of 2014, compared to an upwardly revised $3.82 trillion reported in the previous quarter.
Happy pips.
Forex Market Update 16Abr14
This morning, the greenback is trading mixed against most of the major currencies. Early morning, Fed’s Narayana Kocherlakota projected the US inflation and employment rate to remain below the US Fed’s goal for several years and asked the Fed for some additional measures to correct the same.
The EUR rose against the USD, despite data confirming that Euro-zone’s annual consumer inflation rate fell to a four-year low level of 0.5% in March while current account surplus in the region narrowed from a record high to €21.9 billion in February.
The GBP is trading higher against the USD after Britain’s unemployment rate fell below the BoE’s threshold to a five-year low of 6.9% in the three months to February and after the number of people availing jobless benefits declined to its lowest level since November 2008.
The NZD lost ground after New Zealand’s consumer prices slowed more-than-forecast in the first quarter.
In Yesterday’s New York session, the greenback traded mixed against the key currencies. However, later during the day, the USD advanced after consumer inflation in the US rose slightly more than expected in March, adding to the signs of recovery in the nation. Separately, the Fed Chief, Janet Yellen indicated that policymakers were mulling stricter rules on banks' capital needs while the Boston Fed President, Eric Rosengren urged the US central bank to provide more explicit guidance on its interest rates.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3842 against the USD, 0.21% higher from the New York close, even as a report confirmed that Euro-zone’s annual consumer inflation rate fell to 0.5% (YoY) in March, its lowest level since November 2009. Separately, the Euro-zone's current-account surplus narrowed slightly to a seasonally adjusted €21.9 billion in February, from a record high surplus of €25.4 billion in January. During the session, the pair traded at a high of 1.3852 and a low of 1.3810. Yesterday, the EUR traded 0.08% higher against the USD in the New York session, and closed at 1.3813.
The pair is expected to find its first support at 1.3805 and first resistance at 1.3866.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6796 against the USD, 0.40% higher from the New York close, after the UK ILO unemployment rate unexpectedly fell to 6.9% in February, the lowest level in five years and after jobless claims in the nation for March reported a 17th consecutive decline that was larger than forecast. During the session, the pair traded at a high of 1.6819 and a low of 1.6722. Yesterday, the British Pound traded tad lower versus the Dollar in the New York session, and closed at 1.6729.
The pair is expected to find its first support at 1.6732 and first resistance at 1.6839.
USD JPY
The USD is trading at 102.33 against the JPY at 9:40 GMT this morning, 0.46% higher from the New York close. Early morning, the BoJ Governor, Kuroda affirmed his positive view on the Japanese economy and projected growth to pick up around mid-year. In economic releases, Japan's industrial production declined as estimated in February. During the session, the pair traded at a high of 102.38 and a low of 101.85. In the New York session yesterday, the USD traded marginally higher against the JPY, and closed at 101.86.
The pair is expected to find its first support at 101.76 and first resistance at 102.64.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8789 against the Swiss Franc, 0.16% lower from the New York close. However, the Swiss Franc pared some of its initial gains after the ZEW survey on the Swiss economic expectations slipped for a fourth straight month in April. During the session, the pair traded at a high of 0.8810 and a low of 0.8786. In the New York session yesterday, the USD traded 0.07% lower against the CHF, and closed at 0.8803.
The pair is expected to find its first support at 0.8773 and first resistance at 0.8813.
USD CAD
At 9:40 GMT, the USD is trading at 1.1002 against the CAD, 0.17% higher from the New York close, ahead of BoC’s interest rate decision. During the session, the pair traded at a high of 1.1004 and a low of 1.0980. Yesterday, the USD traded 0.17% lower against the CAD in the New York session, and closed at 1.0983. In economic news, Canada’s manufacturing shipments in February rose to the highest sales level recorded since July 2008, while existing home sales in Canada jumped in March.
The pair is expected to find its first support at 1.0977 and first resistance at 1.1021.
AUD USD
The AUD is trading at 0.9344 against the USD, at 9:40 GMT this morning, 0.16% lower from the New York close. Data released overnight showed that the Westpac leading index in Australia was basically unchanged in March at a reading of 98.38. Meanwhile, data from China showed that annual GDP rose at the slowest pace in six quarters in Q1. During the session, the pair traded at a high of 0.9382 and a low of 0.9339.AUD traded slightly lower against the USD in the New York session, and closed at 0.9359.
The pair is expected to find its first support at 0.9318 and first resistance at 0.9384.
Gold
At 9:40 GMT, Gold is trading at $1298.60 per ounce, 0.34% lower from the New York close, amid profit booking. This morning, Gold traded at a high of $1304.70 and a low of $1293.50 per ounce. In the New York session yesterday, the yellow metal traded 0.66% higher, and closed at $1303.00, as escalating tensions in Ukraine bolstered its safe-haven appeal. However, the gains in the metal were capped after the World Gold Council indicated that Chinese firms could have locked up as much as 1,000 tons of gold in financing deals.
Gold has its first support at $1284.57 and first resistance at $1312.47.
Silver
Silver is trading at $19.51 per ounce, 0.26% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.63 and a low of $19.33. Silver traded 0.80% higher against the USD in the New York session, and closed at $19.56.
Silver has its first support at $19.17 and first resistance at $19.90.
Crude Oil
At 9:40 GMT, Oil is trading at $104.62 per barrel, 0.80% higher from the New York close. This morning, Oil traded at a high of $104.72 and a low of $103.68. Yesterday, Oil traded 0.75% higher in the New York session, and closed at $103.84, as escalating tensions in Ukraine weighed on the supply-outlook of the commodity. However, easing concerns on Libya’s oil exports and a more-than-expected rise in the API’s weekly crude oil’s data limited the gains in the commodity.
It has its first support at $103.51 and first resistance at $105.23.
Economic Snapshot
UK unemployment rate fell more than expected in February
On a three months basis, the ILO unemployment rate in UK declined to 6.9% for December 2013 to February 2014, more than market expectation of a rate of 7.1% and compared to a revised rate of 7.1% recorded for September to November 2013.
UK claimant count rate declined in March
National Statistics reported that the claimant count rate in UK fell to 3.4% in March, in line with market expectations and compared to a rate of 3.5% recorded in the previous month.
Euro-zone consumer price index rose at a slower pace in March
On an annual basis, the final consumer price index in the Euro zone rose 0.5% in March, compared to a reading of 0.7% in the previous month.
Swiss ZEW economic expectations index dropped unexpectedly in April
The economic expectations index in Switzerland dropped to a level of 7.0 in April, compared to a level of 19.0 reported in the previous month. Market had expected the index to rise to 23.0 in April.
Japan industrial production rose than the preliminary estimate in February
On an annual basis, the final industrial production in Japan rose 7.0% in February, more compared to the preliminary estimate of a 6.9% rise, but less compared to a 10.3% increase recorded in the previous month.
Japan’s economy recovering moderately, indicated BoJ’s Kuroda
The Bank of Japan (BoJ) Governor, Haruhiko Kuroda, opined that the central bank’s accommodative monetary policy stance has enabled the Japanese economic recovery to continue at a moderate pace.
Australia Westpac leading index remained flat in March
On a monthly basis, the Westpac leading index in Australia remained steady (0.0%) in March, compared to a 0.1% decrease recorded in the previous month.
China industrial production rose less than anticipated in March
On an annual basis, industrial production in China rose 8.8% in March, compared to an 8.6% rise recorded in the previous month. Markets were expecting industrial production to rise 9.0% in March. Meanwhile, on an annual basis, retail sales in China rose 12.2% in March, compared to an 11.8% increase recorded in the previous month.
Chinese economy expanded more than market estimates in Q12014
On an annual basis, GDP in China rose 7.4% in Q1 2014, more than market expectation of a rise of 7.3%,but less compared to a rise of 7.7% recorded in the previous quarter.
Happy pips.
Forex Market Update 17Abr14
This morning, the greenback is trading mostly lower against most of the major currencies, ahead of the US weekly jobless claims data and a survey on the Philadelphia manufacturing activity for March.
Earlier today, in Japan, the BoJ Governor, Kuroda affirmed that the central bank would maintain its QE measure until necessary to achieve its 2% inflation target while Japan’s Vice Economy Minister, Yasutoshi Nishimura opined that Japan remains on a firm footing even after a sales-tax hike. Additionally, the BoJ, in its quarterly survey, maintained its economic assessment on 8 out of 9 regions and raised its view on 1 region.
Yesterday, in the New York session the greenback traded mostly higher against the key currencies, benefitted by Fed’s Richard Fisher supportive comments on the tapering of the Fed’s stimulus measure.
Separately, Fed’s Beige Book revealed that economic activity in most of the regions has recovered from a weather-related slowdown. Meanwhile, the USD came under pressure after the Fed Chief, Janet Yellen hinted the US interest rates to remain low until signs of firmer economic recovery.
The CAD lost ground after the BoC kept its interest rate unchanged at 1.0% and slashed its Q1 2014 growth-projections on the Canadian economy. Furthermore, the BoC Governor reiterated a neutral stance on interest rate and indicated that “rate cuts cannot be taken off the table at this stage.”
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3863 against the USD, 0.34% higher from the New York close. Data from Germany, Euro-zone’s largest economy, showed that producer prices in the nation fell for an eighth consecutive month and at a more than expected pace in March. During the session, the pair traded at a high of 1.3865 and a low of 1.3817. Yesterday, the EUR traded 0.12% lower against the USD in the New York session, and closed at 1.3816, following the release of soft Euro-zone’s consumer inflation data for March.
The pair is expected to find its first support at 1.3822 and first resistance at 1.3885.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6836 against the USD, 0.23% higher from the New York close. During the session, the pair traded at a high of 1.6844 and a low of 1.6798. Yesterday, the British Pound traded tad lower versus the Dollar in the New York session, and closed at 1.6797, paring its initial gains on the back of upbeat UK employment data.
The pair is expected to find its first support at 1.6797 and first resistance at 1.6860.
USD JPY
The USD is trading at 102.06 against the JPY at 9:40 GMT this morning, 0.18% lower from the New York close. Earlier today, the BoJ raised its view of one of the country's nine regional economies, an indication that the central bank remains confident on the recovery of the economy. Meanwhile, on the economic front, consumer confidence in Japan fell to the lowest level since August 2011 in March. During the session, the pair traded at a high of 102.27 and a low of 101.95. In the New York session yesterday, the USD traded marginally higher against the JPY, and closed at 102.24.
The pair is expected to find its first support at 101.82 and first resistance at 102.33.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8785 against the Swiss Franc, 0.37% lower from the New York close. During the session, the pair traded at a high of 0.8820 and a low of 0.8789. In the New York session yesterday, the USD traded 0.24% higher against the CHF, and closed at 0.8818.
The pair is expected to find its first support at 0.8767 and first resistance at 0.8816.
USD CAD
At 9:40 GMT, the USD is trading at 1.1003 against the CAD, 0.10% lower from the New York close. During the session, the pair traded at a high of 1.1019 and a low of 1.1000. Yesterday, the USD traded 0.33% higher against the CAD in the New York session, and closed at 1.1014. The CAD declined after the BoC kept its interest rate unchanged at 1.0% and reiterated its neutral stance on the future of interest rate.
The pair is expected to find its first support at 1.0962 and first resistance at 1.1039.
AUD USD
The AUD is trading at 0.9361 against the USD, at 9:40 GMT this morning, 0.10% lower from the New York close. On the economic front, data from Australia showed that the NAB business confidence declined in the first quarter while data from China revealed that the year-to-date FDI rose 5.5% on year to $31.56 billion. During the session, the pair traded at a high of 0.9392 and a low of 0.9358. AUD traded tad higher against the USD in the New York session, and closed at 0.9370.
The pair is expected to find its first support at 0.9337 and first resistance at 0.9389.
Gold
At 9:40 GMT, Gold is trading at $1299.70 per ounce, 0.21% lower from the New York close, after reports showed that holdings in SPDR Gold Trust witnessed its biggest outflow since December 23 on Wednesday. This morning, Gold traded at a high of $1304.30 and a low of $1296.60 per ounce. In the New York session yesterday, the yellow metal traded 0.12% lower, and closed at $1302.40, hurt by a stronger US Dollar. However, lingering turmoil in Ukraine kept the commodity’s losses in check.
Gold has its first support at $1295.17 and first resistance at $1305.67.
Silver
Silver is trading at $19.61 per ounce, 0.20% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.66 and a low of $19.49. Silver traded slightly higher against the USD in the New York session, and closed at $19.65.
Silver has its first support at $19.45 and first resistance at $19.78.
Crude Oil
At 9:40 GMT, Oil is trading at $103.86 per barrel, 0.10% higher from the New York close. This morning, Oil traded at a high of $104.28 and a low of $103.63. Yesterday, Oil traded 0.86% lower in the New York session, and closed at $103.79, after the EIA reported a weekly 10 million barrels jump in the US stockpiles, nearly four times more than what market had expected. However, lingering tensions over Ukraine continued to support the prices of oil.
It has its first support at $102.99 and first resistance at $104.86.
Economic Snapshot
German producer price index fell more than anticipated in March
On an annual basis, the producer price index in Germany fell 0.9% in March, compared to a similar decline recorded in the previous month. Market had expected the producer price index to decline 0.7% in March.
Kuroda reiterated to maintain the BoJ’s policy stance
The Bank of Japan (BoJ) Governor, Haruhiko Kuroda, reinforced that the central bank would take appropriate steps to adjust its monetary policy when needed to support the nation’s economic recovery. Kuroda further stated that the Japanese economy was recovering moderately and making a steady progress towards attaining its 2% inflation target.
Japan consumer confidence index declined more than expected in March
The consumer confidence index in Japan fell to a level of 37.5 in March, more than market expectation of a level of 37.7 and compared to a revised reading of 38.5 reported in the previous month.
Japan nationwide department store sales rose sharply in March
On an annual basis, nationwide department store sales in Japan rose 25.4% in March, following a rise of 3.0% recorded in the preceding month.
Australia RBA foreign exchange transaction rose in March
The RBA foreign exchange transaction rose to A$736.0 million in March, from a level of A$369.0 million in the previous month.
Australia’s new motor vehicle sales declined further in March
On a seasonally adjusted monthly basis, new motor vehicle sales in Australia fell 0.3% in March, following a revised fall of 0.1% recorded in the preceding month.
Australia NAB business confidence dropped in Q1 2014
National Australia Bank’s (NAB) quarterly survey reported that the business confidence index in Australia declined to a level of 6.0 in Q1 2014, compared to a level of 8.0 reported in the previous quarter.
China’s foreign direct investment declined in March
On an annual basis, actual foreign direct investment (FDI) in China fell 1.5% in March, compared to market expectations for a rise of 2.0% in March.
Happy pips.
Good question.
This topic will be useful to the community of traders? I would like to know your opinion.
Regards
Good question.
This topic will be useful to the community of traders? I would like to know your opinion.
Regards
Forex Market Update 22Abr14
This morning, the greenback is trading mostly lower against most of the major currencies.
The EUR is trading higher against the USD, ahead of the Euro-zone’s consumer confidence data. Earlier today, data showed that construction output growth in the Euro-zone eased sharply in February. Yesterday, the IMF raised its growth-forecast on the Portuguese economy for 2014 but also cautioned that the nation still faced challenges to achieve sustainable growth.
In an interview this morning, ECB’s Benoit Coeure stated that the central bank still has room to cut rates further and added that the appreciation in the EUR could be held responsible for low inflation in the region.
In Japan, an ex-BoJ policymaker, Miyako Suda hinted that the central bank would hold itself from adding extra stimulus measures for as long as possible but when it decides to act, it would undertake “extraordinary” steps.
Yesterday, in the New York session, the greenback traded mostly higher against the key currencies, after the US CB leading indicator rose for the third consecutive month in March.
In a noteworthy event, the CEBR upgraded its growth forecast on the UK economy for 2014 and 2015. Furthermore, it also projected inflation in the Britain economy to stay below the 2% target for the remainder of the year and unemployment rate to continue to fall.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3804 against the USD, 0.07% higher from the New York close. In economic news, growth in Euro-zone’s construction output eased in February, hurt by a decline in building construction. Looking forward, traders await the Euro-zone’s consumer confidence data for further cues in the EUR. During the session, the pair traded at a high of 1.3812 and a low of 1.3789. Yesterday, the EUR traded 0.17% lower against the USD in the New York session, and closed at 1.3795.
The pair is expected to find its first support at 1.3783 and first resistance at 1.3826.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6824 against the USD, 0.18% higher from the New York close. During the session, the pair traded at a high of 1.6827 and a low of 1.6788. Yesterday, the British Pound traded 0.07% lower versus the Dollar in the New York session, and closed at 1.6793. Late Monday, the Centre of Economics and Business Research (CEBR) raised its growth forecast on the UK economy for 2014 and 2015 on the back of wage growth and lower inflation in Britain.
The pair is expected to find its first support at 1.6798 and first resistance at 1.6839.
USD JPY
The USD is trading at 102.50 against the JPY at 9:40 GMT this morning, 0.12% lower from the New York close. Earlier today, data from Japan showed that coincident index registered a more-than-expected fall in February while leading economic index fell less than preliminary estimates but remained at a six-month low. During the session, the pair traded at a high of 102.74 and a low of 102.46. In the New York session yesterday, the USD traded marginally higher against the JPY, and closed at 102.63.
The pair is expected to find its first support at 102.36 and first resistance at 102.69.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8843 against the Swiss Franc, 0.08% lower from the New York close. On the economic front, Switzerland's M3 money supply growth accelerated for the third consecutive month in March. During the session, the pair traded at a high of 0.8858 and a low of0.8841.In the New York session yesterday, the USD traded 0.27% higher against the CHF, and closed at 0.8850.
The pair is expected to find its first support at 0.8823 and first resistance at 0.8861.
USD CAD
At 9:40 GMT, the USD is trading at 1.1019 against the CAD, 0.06% higher from the New York close. Market participants are expected to keep a tab on Canada’s wholesale sales data for February, slated for release later today. During the session, the pair traded at a high of 1.1026 and a low of 1.1014. Yesterday, the USD traded 0.13% lower against the CAD in the New York session, and closed at 1.1012.
The pair is expected to find its first support at 1.1005 and first resistance at 1.1033.
AUD USD
The AUD is trading at 0.9356 against the USD, at 9:40 GMT this morning, 0.34% higher from the New York close, ahead of Australia’s consumer inflation data for the first quarter. Data released overnight, revealed that the CB leading index in Australia rose 0.3% in February to 128.6, compared to a 0.2% increase in January. During the session, the pair traded at a high of 0.9372 and a low of 0.9328. AUD traded slightly lower against the USD in the New York session, and closed at 0.9324.
The pair is expected to find its first support at 0.9325 and first resistance at 0.9380.
Gold
At 9:40 GMT, Gold is trading at $1290.70 per ounce, 0.06% higher from the New York close, as the US Dollar shed some of its earlier gains. However, initially the precious metal came under pressure after SPDR Gold Trust reported a fall of 3.0 tons in its holdings on Monday. This morning, Gold traded at a high of $1292.60 and a low of $1285.90 per ounce. In the New York session yesterday, the yellow metal traded 0.10% higher, and closed at $1289.90.
Gold has its first support at $1284.30 and first resistance at $1295.50.
Silver
Silver is trading at $19.45 per ounce, 0.15% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.50 and a low of $19.29. Silver traded 0.13% higher against the USD in the New York session, and closed at $19.42, tracking gains in the prices of gold.
Silver has its first support at $19.32 and first resistance at $19.54.
Crude Oil
At 9:40 GMT, Oil is trading at $103.99 per barrel, 0.30% lower from the New York close. This morning, Oil traded at a high of $104.36 and a low of $103.90. Yesterday, Oil traded 0.13% higher in the New York session, and closed at $104.33, amid lingering tensions between the US and Russia over Ukraine and following the release of a strong US leading economic indicator.
It has its first support at $103.64 and first resistance at $104.56.
Economic Snapshot
Euro-zone construction output rose at a slower pace in February
Eurostat reported that on a working day adjusted annual basis, construction output in the Euro-zone rose 6.7% in February, compared to a revised increase of 8.0% recorded in the previous month.
Swiss M3 money supply rose in March
On an annual basis, M3 money supply in Switzerland rose 9.0% in March, compared to an 8.7% revised rise recorded in the previous month.
Japan’s final leading economic index declined in February
The final leading economic index in Japan declined to a level of 108.9 in February, less than the preliminary estimate of 108.5 and compared to a revised level of 113.5 reported in the previous month. Meanwhile, the final coincident index declined to a level of 113.0 in February, more than the preliminary estimate of 113.4 and compared to a revised level of 114.9 recorded in the previous month.
Australia CB leading economic index rose at a faster pace in February
The CB leading economic index in Australia increased 0.3% in February, following a rise of 0.2% recorded in the preceding month.
Good trades.
Forex Market Update 23Abr14
This morning, the greenback is trading mixed against most of the major currencies, ahead of the PMI data and update on new home sales in the US.
The EUR is trading higher against the USD, buoyed by upbeat Markit PMI for the Euro-zone and Germany. However, yesterday, the EUR came under pressure after ECB’s Benoit Coeure hinted that the central bank still has room for lower interest rates and several other instruments to loosen policy.
In the UK, the BoE minutes revealed that policymakers voted unanimously to keep policy unchanged at its April policy meeting; however, they remained divided over the amount of slackness in the UK labor market and over the inflation outlook.
The AUD lost ground after Australia’s consumer price index rose less than economists’ forecast for the first quarter and after China’s HSBC manufacturing PMI remained in the contraction territory in April.
In Yesterday’s New York session, the greenback traded mostly higher against the key currencies, following the latest batch of strong economic releases from the US economy. Separately, former Fed Chairman, Ben Bernanke opined that the US was making considerable progress, rebounding from the headwinds that the nation witnessed during the financial crisis.
In a noteworthy event, the DBRS Inc. upgraded its outlook on the US economy’s “AAA” sovereign ranking to “stable” from “negative.”
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3845 against the USD, 0.27% higher from the New York close, after Markit Economics reported that Euro-zone’s composite PMI jumped to a 3-year high reading in April while its manufacturing and service PMI also rose more than expected this month. Additionally, German PMI numbers also topped expectations in April. During the session, the pair traded at a high of 1.3856 and a low of 1.3804. Yesterday, the EUR traded 0.09% lower against the USD in the New York session, and closed at 1.3808.
The pair is expected to find its first support at 1.3803 and first resistance at 1.3871.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6813 against the USD, 0.07% lower from the New York close. Earlier today, minutes from the BoE’s 9 April policy meeting showed that economic recovery in Britain is gaining momentum but also highlighted policymakers’ concerns over the slack in the labor market in the economy. Separately, the UK budget deficit in March sank to its lowest since the financial crisis. During the session, the pair traded at a high of 1.6837 and a low of 1.6805. Yesterday, the British Pound traded tad higher versus the Dollar in the New York session, and closed at 1.6825.
The pair is expected to find its first support at 1.6795 and first resistance at 1.6836.
USD JPY
The USD is trading at 102.48 against the JPY at 9:40 GMT this morning, 0.13% lower from the New York close. Early morning, BoJ Governor, Haruhiko Kuroda opined that consumer inflation in Japan might have exceeded the BoJ’s 0.7% forecast for FY 2013. Separately, the BoJ Dy. Governor, Hiroshi Nakaso stated that the Japanese economy is well able to withstand the effects of a sale-tax hike. During the session, the pair traded at a high of 102.71 and a low of 102.49. In the New York session yesterday, the USD traded 0.11% higher against the JPY, and closed at 102.61.
The pair is expected to find its first support at 102.38 and first resistance at 102.64.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8815 against the Swiss Franc, 0.38% lower from the New York close. Amid lack of economic releases from Switzerland later today, traders await the Swiss trade balance data, slated for release tomorrow. During the session, the pair traded at a high of 0.8855 and a low of 0.8817. In the New York session yesterday, the USD traded 0.12% higher against the CHF, and closed at 0.8849.
The pair is expected to find its first support at 0.8796 and first resistance at 0.8849.
USD CAD
At 9:40 GMT, the USD is trading at 1.1036 against the CAD, 0.05% higher from the New York close, ahead of the Statistics Canada’s report on Canada’s retail sales for February. During the session, the pair traded at a high of 1.1049 and a low of 1.1029. Yesterday, the USD traded 0.18% higher against the CAD in the New York session, and closed at 1.1030. On the economic front, Canada’s monthly wholesale sales rose more than market expectations to the highest level on record in February.
The pair is expected to find its first support at 1.1006 and first resistance at 1.1058.
AUD USD
The AUD is trading at 0.9280 against the USD, at 9:40 GMT this morning, 0.90% lower from the New York close, hurt by downbeat Australian consumer inflation and China’s manufacturing PMI data. During the session, the pair traded at a high of 0.9379 and a low of 0.9277. AUD traded marginally lower against the USD in the New York session, and closed at 0.9364.
The pair is expected to find its first support at 0.9239 and first resistance at 0.9350.
Gold
At 9:40 GMT, Gold is trading at $1284.10 per ounce, tad lower from the New York close. However, earlier the yellow metal rose as lingering concerns on the Ukraine crisis overshadowed optimism on the US economic recovery. This morning, Gold traded at a high of $1287.50 and a low of $1282.10 per ounce. In the New York session yesterday, the yellow metal traded 0.38% lower, and closed at $1284.20, as traders favored the rally in the US equity markets over the safe-haven metal.
Gold has its first support at $1275.57 and first resistance at $1292.87.
Silver
Silver is trading at $19.47 per ounce, 0.15% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.54 and a low of $19.42. Silver traded slightly higher against the USD in the New York session, and closed at $19.44, amid strong demand for industrial metals.
Silver has its first support at $19.35 and first resistance at $19.57.
Crude Oil
At 9:40 GMT, Oil is trading at $101.27 per barrel, 0.60% lower from the New York close, following a lackluster Chinese manufacturing PMI data for April and on growing speculation that the government weekly report on the US crude stockpiles to be released later today could exceed an all-time high, on the back of rise in domestic oil production. This morning, Oil traded at a high of $101.99 and a low of $101.20. Yesterday, Oil traded 0.62% lower in the New York session, and closed at $101.91. Late Tuesday, the API reported a climb of 519,000 barrels in the US crude supplies last week.
It has its first support at $100.54 and first resistance at $102.66.
Economic Snapshot
UK public sector net borrowing lower than expected in March
UK public sector net borrowing recorded a deficit of £4.9 billion in March, following a revised deficit of £7.0 billion reported in February. Market had expected UK public sector net borrowing deficit of £9.1 billion in March.
BoE MPC members voted unanimous to keep the monetary policy unchanged, indicated BoE minutes
The minutes of the Bank of England’s (BoE) monetary policy meeting held on 9 April 2014 indicated that the central bank officials voted unanimously to keep the benchmark interest rate unchanged at 0.5% and maintain the assets purchase programme at £375.0 billion.
Euro-zone preliminary services PMI rose in April
The Markit preliminary services purchasing managers’ index (PMI) in the Euro-zone rose to a reading of 53.1 in April, following a final reading of 52.2 in the previous month. Meanwhile, the preliminary manufacturing PMI in the Euro-zone rose to reading of 53.3 in April, from a final reading of 53.0 in the previous month. Likewise, Euro-zone’s preliminary composite PMI rose to a reading of 54.0 in April, compared to a final reading of 53.1 in the previous month.
German preliminary services and manufacturing PMIs rose more than expected in April
Markit Economics reported that the preliminary services purchasing managers’ index (PMI) in Germany increased to a reading of 55.0 in April, compared to a final reading of 53.0 reported in the previous month. Market had expected the index to rise to a reading of 53.3 in April. Meanwhile, the preliminary manufacturing purchasing managers’ index (PMI) in Germany rose to reading of 54.2 in April, more than market forecasts and compared to a final reading of 53.7 reported in the previous month.
France preliminary services and manufacturing PMIs fell in April
Markit Economics reported that the preliminary services purchasing managers’ index (PMI) in France dropped to a reading of 50.3 in April, compared to a final reading of 51.5 reported in the previous month. Meanwhile, the preliminary manufacturing purchasing managers’ index (PMI) in France fell to a reading of 50.9 in April, following a reading of 52.1 in the previous month.
Kuroda reiterated 2% inflation target
The Bank of Japan (BoJ) Governor, Haruhiko Kuroda, reinforced that the central bank is on track to achieve its 2% inflation target, while stating that inflation in the previous fiscal ended March may slightly exceed the BoJ’s projection.
Australia CPI rose less than anticipated in the Q1 2014
On an annual basis, Australia’s consumer price index (CPI) increased 2.9% in Q1 2014, compared to a 2.7% rise recorded in the previous quarter. Market had expected the consumer price index to rise 3.2% in the first quarter of 2014. Additionally, the Reserve Bank of Australia (RBA) reported that on an annual basis, the RBA weighted median consumer price index in Australia advanced 2.7% in Q1 2014, following a revised rise of 2.5% recorded in the preceding quarter.
China preliminary Markit manufacturing PMI rose as expected in April
Markit Economics reported that the preliminary manufacturing Purchasing Managers’ Index (PMI) in China rose to a reading of 48.3 in April, in line with market forecasts and compared to a final reading of 48.0 reported in the previous month.
Good trades.