Forex Market Update
This morning, the greenback is trading mostly lower against most of the major currencies.
On Friday, the greenback declined against its major counterparts after a lackluster US non-farm payrolls data renewed concerns on the recovery of the US labor market. However, an unexpected fall in the US unemployment rate in January kept the currency’s losses in check to some extent.
The Euro was in demand this morning, after a survey by the think tank, Sentix showed that investor confidence in the Euro-zone improved unexpectedly in February.
The Pound is trading lower this morning. On Friday, the GBP advanced against the US Dollar after the NIESR raised its 2014 growth forecast on the UK economy, and further added that the “remarkable performance” of the labor market and subdued consumer price inflation in the nation, has led to the UK's economic recovery becoming “entrenched”.
The Canadian Dollar rose against its US counterpart on Friday, after data revealed that the Canadian economy added more-than-expected jobs in January, while the unemployment rate fell more than analysts’ expectations.
The Bank of Canada Senior Deputy Governor, Tiff Macklem reiterated that the central bank is greatly concerned about the downside risks to inflation, and that the timing and direction of a change to the policy rate will depend on future data.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3634 against the USD, 0.10% higher from the New York close, after investor confidence in the Euro-zone rose to a 34-month high in February. During the session, the pair traded at a high of 1.3651 and a low of 1.3618. On Friday, the EUR traded 0.38% higher against the USD in the New York session, and closed at 1.3620. The greenback came under pressure following the release of a downbeat non-farm payrolls data in the US for January.
The pair is expected to find its first support at 1.3580 and first resistance at 1.3669.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6392 against the USD, 0.10% lower from the New York close. During the session, the pair traded at a high of 1.6429 and a low of 1.6388. On Friday, the British Pound traded 0.47% higher versus the Dollar in the New York session, and closed at 1.6408. On the economic front, the NIESR reported that the UK economy rose at a faster pace in the three months to January.
The pair is expected to find its first support at 1.6334 and first resistance at 1.6439.
USD JPY
The USD is trading at 102.16 against the JPY at 10:40 GMT this morning, 0.18% lower from the New York close. Data released this morning, showed that consumer confidence in Japan deteriorated for a second successive month in January. Separately, the Eco watchers survey for the current situation and the economic outlook of Japan declined in January. During the session, the pair traded at a high of 102.66 and a low of 102.13. In the New York session on Friday, the USD traded marginally higher against the JPY, and closed at 102.35.
The pair is expected to find its first support at 101.51 and first resistance at 102.74.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.8971 against the Swiss Franc, 0.11% lower from the New York close. On the macro front, Switzerland’s unemployment rate remained unchanged at previous month’s level of 3.2% in January. During the session, the pair traded at a high of 0.8996 and a low of 0.8963. In the New York session on Friday, the USD traded 0.42% lower against the CHF, and closed at 0.8981.
The pair is expected to find its first support at 0.8946 and first resistance at 0.9010.
USD CAD
At 10:40 GMT, the USD is trading at 1.1030 against the CAD, 0.07% lower from the New York close. During the session, the pair traded at a high of 1.1044 and a low of 1.1022. On Friday, the USD traded 0.21% lower against the CAD in the New York session, and closed at 1.1038. The Loonie advanced against the greenback buoyed by the latest batch of upbeat employment data from Canada.
The pair is expected to find its first support at 1.0972 and first resistance at 1.1081.
AUD USD
The AUD is trading at 0.8929 against the USD, at 10:40 GMT this morning, 0.36% lower from the New York close. During the session, the pair traded at a high of 0.8961 and a low of 0.8916. AUD traded 0.26% higher against the USD in the New York session on Friday, and closed at 0.8961, drawing support from the RBA’s upbeat growth outlook for the Australian economy.
The pair is expected to find its first support at 0.8890 and first resistance at 0.8984.
Gold
At 10:40 GMT, Gold is trading at $1273.07 per ounce, 0.46% higher from the New York close. The China Gold Association this morning reported that demand for gold surged by a record 41% to 1,176.4 metric tonnes in 2013. This morning, Gold traded at a high of $1276.41 and a low of $1265.13 per ounce. In the New York session on Friday, the yellow metal traded 0.38% higher, and closed at $1267.23, amid speculations that the return of Chinese traders in the market, after a week-long holiday, would spur demand for the yellow metal.
Gold has its first support at $1260.94 and first resistance at $1280.80.
Silver
Silver is trading at $20.18 per ounce, 0.56% higher from the New York close, at 10:40 GMT this morning, taking cues from gains in the yellow metal. This morning, Silver traded at a high of $20.23 and a low of $19.97. Silver traded 0.77% higher against the USD in the New York session of Friday, and closed at $20.07.
Silver has its first support at $19.92 and first resistance at $20.33.
Crude Oil
At 10:40 GMT, Oil is trading at $99.50 per barrel, 0.60% lower from the New York close. This morning, Oil traded at a high of $100.46 and a low of $99.11. On Friday, Oil traded 2.64% higher in the New York session, and closed at $100.13.
It has its first support at $97.59 and first resistance at $100.94.
Economic Snapshot
UK Lloyd employment confidence index rose in January
Lloyds Banking Group reported that the employment confidence index in UK stood at -2.0 in January, compared to -12.0 reported in the previous month.
Euro-zone Sentix investor confidence rose more than forecast in February
The Sentix investor confidence in the Euro-zone advanced to a level of 13.3 in February, higher than market expectation of a level of 10.1 and compared to a reading of 11.9 reported in the previous month.
French business sentiment index remained unchanged in January
Business sentiment index in France remained steady at a level of 99.0 in January, compared to a revised similar level reported in the previous month. Market had forecast the business sentiment index to rise to a level of 101.0 in January.
French industrial production rose less than expected in December
On an annual basis, industrial production in France advanced 0.5% in December, compared to a revised 1.7% increase in the previous month. Markets were expecting industrial production to rise 1.0% in December. Additionally, on an annual basis, manufacturing production in France rose 0.5% in December, compared to a 1.6% rise recorded in the previous month.
Italian industrial production fell unexpectedly in December
On a working day adjusted annual basis, industrial production in Italy dropped 0.7% in December, following a revised increase of 1.5% recorded in the preceding month. Markets were expecting industrial production to rise 0.9% in December.
Swiss unemployment rate unchanged in January
On a non-seasonally adjusted basis, the unemployment rate in Switzerland remained unchanged at 3.5% in January, compared to the previous month. On a seasonally adjusted basis, the unemployment rate in Switzerland also remained unchanged at 3.2% in January, compared to the previous month.
Japan bankruptcies declined in January
On an annual basis, corporate bankruptcies in Japan dropped 7.5% in January, compared to a 15.7% decline in the previous month.
Japan’s consumer confidence fell unexpectedly in January
Consumer confidence index in Japan eased to a level of 40.5 in January, compared to a reading of 41.3 reported in the previous month. Markets had expected the index to rise to a level of 42.0 in January.
Japanese Eco Watchers Survey fell more than expectations in January
Eco Watchers Survey for the current situation in Japan dropped to a level of 54.7 in January, lower than market expectations of a level of 55.5 and compared to a reading of 55.7 reported in the previous month. Eco Watchers Survey for the future outlook fell to a reading of 49.0 in January from a level of 54.7 recorded in the previous month.
Happy pips.
