Forex Market Update
This morning the greenback continued to climb higher, heading for a yet another weekly gain against its key peers, as second positive US jobs report of the week signaled a healthy status of the US labor market. The weekly initial jobless benefits dropped at a fastest pace in five weeks for the week ended January 3. Against this backdrop, market participants are expected to keep a close tab on today’s nonfarm payrolls report which would provide a broader picture of the US labor market.
Meanwhile, the US Federal Reserve’s (Fed) regional President from Kansas City voiced her concerns about the central bank keeping the interest rates at current levels for a prolonged period of time.
The Euro is trading in the red against the USD, after the Euro-zone’s economy grew at a slower pace in the third quarter. Yesterday, the European Central bank (ECB) Chief, Mario Draghi, stated to use all the possible monetary actions if the circumstances worsen in the bloc. He further opined that the downside risks still linger for the Euro region.
The Sterling inched lower after the industrial and manufacturing production in the nation rose at a slower pace in November, while domestic construction and retail sales data also disappointed investors. Meanwhile, the Bank of England (BoE) yesterday kept the interest rates and the size of the asset purchases on hold and refrained from providing any further guidance.
Over to the Asia Pacific, the Chinese trade surplus shrank in the last month in December pushing the Aussie southwards.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3593 against the USD, 0.11% lower from the New York close, after the Euro-zone’s gross domestic product for the third quarter disappointed traders. During the session, the pair traded at a high of 1.3621 and a low of 1.3589. Yesterday, the EUR traded tad lower against the USD in the New York session, and closed at 1.3608.
The pair is expected to find its first support at 1.3549 and first resistance at 1.3635.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6413 against the USD, 0.41% lower from the New York close, after industrial and manufacturing production in the UK failed to show further signs of improvement in November. In other economic news, the British Retail Consortium’s retail sales monitor rose at a slower pace in December. Later today, investors are expected to focus on the UK’s growth estimate report from the National Institute of Economic & Social Research. During the session, the pair traded at a high of 1.6485 and a low of 1.6402. Yesterday, the British Pound traded 0.14% higher versus the Dollar in the New York session, and closed at 1.6481.
The pair is expected to find its first support at 1.6377 and first resistance at 1.6474.
USD JPY
The USD is trading at 104.97 against the JPY at 10:40 GMT this morning, 0.13% higher from the New York close. On the data front, leading economic and coincident index in Japan improved in November. During the session, the pair traded at a high of 105.02 and a low of 104.78. In the New York session yesterday, the USD traded 0.17% lower against the JPY, and closed at 104.84.
The pair is expected to find its first support at 104.68 and first resistance at 105.16.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.9081 against the Swiss Franc, 0.13% higher from the New York close. The Swissy lost ground following the release of downbeat domestic consumer price inflation data for December. Separately, unemployment rate in the country remained unchanged in the similar period. During the session, the pair traded at a high of 0.9085 and a low of 0.9059. In the New York session yesterday, the USD traded 0.26% lower against the CHF, and closed at 0.9069.
The pair is expected to find its first support at 0.9052 and first resistance at 0.9118.
USD CAD
At 10:40 GMT, the USD is trading at 1.0856 against the CAD, 0.12% higher from the New York close, ahead of the Canadian jobs report to be released later today. During the session, the pair traded at a high of 1.0864 and a low of 1.0834. Yesterday, the USD traded 0.09% lower against the CAD in the New York session, and closed at 1.0843. Housing starts in Canada dropped more than market expectations in December. Meanwhile, building permits fell in November.
The pair is expected to find its first support at 1.0832 and first resistance at 1.0878.
AUD USD
The AUD is trading at 0.8896 against the USD, at 10:40 GMT this morning, 0.06% lower from the New York close, as disappointing trade data from China weighed on the Australian Dollar. However, a rebound in the Australian new home sales data capped the losses in the AUD. During the session, the pair traded at a high of 0.8912 and a low of 0.8875. AUD traded 0.29% higher against the USD in the New York session, and closed at 0.8901.
The pair is expected to find its first support at 0.8871 and first resistance at 0.8917.
Gold
At 10:40 GMT, Gold is trading at $1233.54 per ounce, 0.48% higher from the New York close. The prices in the yellow metal in today’s market action would take cues from the all-important US non-farm payrolls report, as recent employment reports have pointed towards a steady improvement in the labor market. This morning, Gold traded at a high of $1238.23 and a low of $1225.85 per ounce. In the New York session yesterday, the yellow metal traded 0.25% lower, and closed at $1227.60.
Gold has its first support at $1225.43 and first resistance at $1239.94.
Silver
Silver is trading at $19.77 per ounce, 1.02% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $19.86 and a low of $19.55. Silver traded 0.39% lower against the USD in the New York session, and closed at $19.57, after a better than expected drop in the US weekly jobless claims data boosted the greenback.
Silver has its first support at $19.50 and first resistance at $19.95.
Crude Oil
At 10:40 GMT, Oil is trading at $92.62 per barrel, 0.30% higher from the New York close, underpinned by data that showed that Chinese crude imports rose 13% in December to a record 6.31 million barrels per day. This morning, Oil traded at a high of $92.73 and a low of $91.66. Yesterday, Oil traded 0.53% lower in the New York session, and closed at $92.32.
It has its first support at $91.60 and first resistance at $93.29.
Economic Snapshot
UK BRC retail sales climbed at a slower pace in December
On an annual basis, like-for-like retail sales in the UK rose 0.4% in December, compared to a 0.6% rise recorded in the previous month. Markets were expecting the UK retail sales to rise 0.8% in December.
UK construction output advanced less than anticipated in November
On a seasonally adjusted annual basis, construction output in the UK increased 2.2% in November, following a revised increase of 5.1% in previous month. Markets were expecting the construction output to climb 7.5% in November.
UK industrial and manufacturing production remained flat in November
On a monthly basis, industrial production in UK remained flat in November, compared to a downwardly revised 0.3% increase recorded in the previous month. Markets were expecting industrial production to rise 0.4% in November. Meanwhile, on an annual basis, industrial production in UK rose 2.5% in November, compared to a 3.2% increase in the previous month. Additionally, on a monthly basis, manufacturing production in UK remained flat in November, following a downwardly revised rise of 0.2% recorded in the preceding month. On an annual basis, manufacturing production in the UK advanced 2.8% in November, following to a revised 2.6% increase in the previous month.
Euro-zone GDP grew in line with earlier estimate in Q3 2013
On a seasonally adjusted quarterly basis, final gross domestic product (GDP) in the Euro-zone rose 0.1% in the third quarter of 2013, in line with the second estimate and against a rise of 0.3% recorded in the second quarter of 2013. Meanwhile, the final GDP on a seasonally adjusted annual basis contracted by 0.4% in Q3 2013, compared to a decline of 0.6% recorded in the second quarter of 2013.
Bank of France business sentiment index dropped as expected in December
The business sentiment index in France fell to a level of 100.0 in December, in line with market expectations and compared to a level of 101.0 in the previous month.
France industrial production advanced more than expected in November
On a monthly basis, industrial production in France rose 1.3% in November, against a downwardly revised fall of 0.5% recorded in the previous month. Markets were expecting the industrial production to rise 0.4% in November.
French manufacturing production advanced at a slower pace in November
On a monthly basis, manufacturing production in France climbed 0.2% in November, slower compared to a downwardly revised 0.3% rise recorded in the previous month. Markets had expected manufacturing production to rise 0.2% in November.
Swiss unemployment rate remained steady in December
On a seasonally adjusted basis, unemployment rate in Switzerland remained unchanged at 3.2% in December, compared to the previous month and in line with market expectations
Swiss CPI advanced less than estimates in December
On an annual basis, the consumer price index (CPI) in Switzerland rose 0.1% in December, following a similar increase reported in the previous month. Markets were expecting the consumer price index to rise 0.2% in December.
Japan preliminary leading economic index advanced in line with market expectations in November
The preliminary leading economic index in Japan rose to a reading of 110.8 in November, in line with market expectations and compared to a reading of 109.8 reported in the preceding month. Meanwhile, the preliminary coincident index rose to a level of 110.5 in November, lower than market expectation of a level of 110.6 and compared to a reading of 110.4 reported in the previous.
Australia HIA new home sales rebounded in November
On a monthly basis, new home sales in Australia climbed 7.5% in November, following a 3.8% fall in the previous month.
Chinese trade surplus narrowed more than expected in December
The trade surplus of China narrowed to $25.6 billion in December, following a surplus of $33.8 billion recorded in the previous month. Markets had expected China’s trade surplus to narrow to $32.2 billion in December.
This morning the greenback continued to climb higher, heading for a yet another weekly gain against its key peers, as second positive US jobs report of the week signaled a healthy status of the US labor market. The weekly initial jobless benefits dropped at a fastest pace in five weeks for the week ended January 3. Against this backdrop, market participants are expected to keep a close tab on today’s nonfarm payrolls report which would provide a broader picture of the US labor market.
Meanwhile, the US Federal Reserve’s (Fed) regional President from Kansas City voiced her concerns about the central bank keeping the interest rates at current levels for a prolonged period of time.
The Euro is trading in the red against the USD, after the Euro-zone’s economy grew at a slower pace in the third quarter. Yesterday, the European Central bank (ECB) Chief, Mario Draghi, stated to use all the possible monetary actions if the circumstances worsen in the bloc. He further opined that the downside risks still linger for the Euro region.
The Sterling inched lower after the industrial and manufacturing production in the nation rose at a slower pace in November, while domestic construction and retail sales data also disappointed investors. Meanwhile, the Bank of England (BoE) yesterday kept the interest rates and the size of the asset purchases on hold and refrained from providing any further guidance.
Over to the Asia Pacific, the Chinese trade surplus shrank in the last month in December pushing the Aussie southwards.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3593 against the USD, 0.11% lower from the New York close, after the Euro-zone’s gross domestic product for the third quarter disappointed traders. During the session, the pair traded at a high of 1.3621 and a low of 1.3589. Yesterday, the EUR traded tad lower against the USD in the New York session, and closed at 1.3608.
The pair is expected to find its first support at 1.3549 and first resistance at 1.3635.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6413 against the USD, 0.41% lower from the New York close, after industrial and manufacturing production in the UK failed to show further signs of improvement in November. In other economic news, the British Retail Consortium’s retail sales monitor rose at a slower pace in December. Later today, investors are expected to focus on the UK’s growth estimate report from the National Institute of Economic & Social Research. During the session, the pair traded at a high of 1.6485 and a low of 1.6402. Yesterday, the British Pound traded 0.14% higher versus the Dollar in the New York session, and closed at 1.6481.
The pair is expected to find its first support at 1.6377 and first resistance at 1.6474.
USD JPY
The USD is trading at 104.97 against the JPY at 10:40 GMT this morning, 0.13% higher from the New York close. On the data front, leading economic and coincident index in Japan improved in November. During the session, the pair traded at a high of 105.02 and a low of 104.78. In the New York session yesterday, the USD traded 0.17% lower against the JPY, and closed at 104.84.
The pair is expected to find its first support at 104.68 and first resistance at 105.16.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.9081 against the Swiss Franc, 0.13% higher from the New York close. The Swissy lost ground following the release of downbeat domestic consumer price inflation data for December. Separately, unemployment rate in the country remained unchanged in the similar period. During the session, the pair traded at a high of 0.9085 and a low of 0.9059. In the New York session yesterday, the USD traded 0.26% lower against the CHF, and closed at 0.9069.
The pair is expected to find its first support at 0.9052 and first resistance at 0.9118.
USD CAD
At 10:40 GMT, the USD is trading at 1.0856 against the CAD, 0.12% higher from the New York close, ahead of the Canadian jobs report to be released later today. During the session, the pair traded at a high of 1.0864 and a low of 1.0834. Yesterday, the USD traded 0.09% lower against the CAD in the New York session, and closed at 1.0843. Housing starts in Canada dropped more than market expectations in December. Meanwhile, building permits fell in November.
The pair is expected to find its first support at 1.0832 and first resistance at 1.0878.
AUD USD
The AUD is trading at 0.8896 against the USD, at 10:40 GMT this morning, 0.06% lower from the New York close, as disappointing trade data from China weighed on the Australian Dollar. However, a rebound in the Australian new home sales data capped the losses in the AUD. During the session, the pair traded at a high of 0.8912 and a low of 0.8875. AUD traded 0.29% higher against the USD in the New York session, and closed at 0.8901.
The pair is expected to find its first support at 0.8871 and first resistance at 0.8917.
Gold
At 10:40 GMT, Gold is trading at $1233.54 per ounce, 0.48% higher from the New York close. The prices in the yellow metal in today’s market action would take cues from the all-important US non-farm payrolls report, as recent employment reports have pointed towards a steady improvement in the labor market. This morning, Gold traded at a high of $1238.23 and a low of $1225.85 per ounce. In the New York session yesterday, the yellow metal traded 0.25% lower, and closed at $1227.60.
Gold has its first support at $1225.43 and first resistance at $1239.94.
Silver
Silver is trading at $19.77 per ounce, 1.02% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $19.86 and a low of $19.55. Silver traded 0.39% lower against the USD in the New York session, and closed at $19.57, after a better than expected drop in the US weekly jobless claims data boosted the greenback.
Silver has its first support at $19.50 and first resistance at $19.95.
Crude Oil
At 10:40 GMT, Oil is trading at $92.62 per barrel, 0.30% higher from the New York close, underpinned by data that showed that Chinese crude imports rose 13% in December to a record 6.31 million barrels per day. This morning, Oil traded at a high of $92.73 and a low of $91.66. Yesterday, Oil traded 0.53% lower in the New York session, and closed at $92.32.
It has its first support at $91.60 and first resistance at $93.29.
Economic Snapshot
UK BRC retail sales climbed at a slower pace in December
On an annual basis, like-for-like retail sales in the UK rose 0.4% in December, compared to a 0.6% rise recorded in the previous month. Markets were expecting the UK retail sales to rise 0.8% in December.
UK construction output advanced less than anticipated in November
On a seasonally adjusted annual basis, construction output in the UK increased 2.2% in November, following a revised increase of 5.1% in previous month. Markets were expecting the construction output to climb 7.5% in November.
UK industrial and manufacturing production remained flat in November
On a monthly basis, industrial production in UK remained flat in November, compared to a downwardly revised 0.3% increase recorded in the previous month. Markets were expecting industrial production to rise 0.4% in November. Meanwhile, on an annual basis, industrial production in UK rose 2.5% in November, compared to a 3.2% increase in the previous month. Additionally, on a monthly basis, manufacturing production in UK remained flat in November, following a downwardly revised rise of 0.2% recorded in the preceding month. On an annual basis, manufacturing production in the UK advanced 2.8% in November, following to a revised 2.6% increase in the previous month.
Euro-zone GDP grew in line with earlier estimate in Q3 2013
On a seasonally adjusted quarterly basis, final gross domestic product (GDP) in the Euro-zone rose 0.1% in the third quarter of 2013, in line with the second estimate and against a rise of 0.3% recorded in the second quarter of 2013. Meanwhile, the final GDP on a seasonally adjusted annual basis contracted by 0.4% in Q3 2013, compared to a decline of 0.6% recorded in the second quarter of 2013.
Bank of France business sentiment index dropped as expected in December
The business sentiment index in France fell to a level of 100.0 in December, in line with market expectations and compared to a level of 101.0 in the previous month.
France industrial production advanced more than expected in November
On a monthly basis, industrial production in France rose 1.3% in November, against a downwardly revised fall of 0.5% recorded in the previous month. Markets were expecting the industrial production to rise 0.4% in November.
French manufacturing production advanced at a slower pace in November
On a monthly basis, manufacturing production in France climbed 0.2% in November, slower compared to a downwardly revised 0.3% rise recorded in the previous month. Markets had expected manufacturing production to rise 0.2% in November.
Swiss unemployment rate remained steady in December
On a seasonally adjusted basis, unemployment rate in Switzerland remained unchanged at 3.2% in December, compared to the previous month and in line with market expectations
Swiss CPI advanced less than estimates in December
On an annual basis, the consumer price index (CPI) in Switzerland rose 0.1% in December, following a similar increase reported in the previous month. Markets were expecting the consumer price index to rise 0.2% in December.
Japan preliminary leading economic index advanced in line with market expectations in November
The preliminary leading economic index in Japan rose to a reading of 110.8 in November, in line with market expectations and compared to a reading of 109.8 reported in the preceding month. Meanwhile, the preliminary coincident index rose to a level of 110.5 in November, lower than market expectation of a level of 110.6 and compared to a reading of 110.4 reported in the previous.
Australia HIA new home sales rebounded in November
On a monthly basis, new home sales in Australia climbed 7.5% in November, following a 3.8% fall in the previous month.
Chinese trade surplus narrowed more than expected in December
Happy pips.
