Forex Market Update
This morning, the US dollar is trading higher against its key peers, as the US Federal Reserve (Fed) begin its two-day policy meeting, with speculation rising that the Fed may add cuts to its monthly $75 billion bond-buying program.
Data released yesterday indicated that, new home sales in the US dropped unexpectedly in December. Meanwhile, manufacturing activity in Dallas inched marginally higher in January. Ahead today, the nation’s durable goods orders, consumer confidence and another housing market gauge would remain on trader’s radar, as they would provide further insights for the US economy.
The Euro is trading in the red against the greenback. On the data front, the French and Italian consumer confidence improved in January. Yesterday, the European Central bank’s (ECB) Member, Jens Weidmann, supported the ECB President, Mario Draghi’s view that although the bloc has witnessed a gradual recovery over the past few quarters, the economic recovery continues to remain fragile and uneven. Further, he reiterated that interest rates will remain at lower levels for an extended period of time.
The Sterling fell against the USD, after reports revealed that the UK’s economic growth slowed slightly to 0.7% in the final quarter of 2013.
Elsewhere in Asia, the Aussie found support as the nation’s business conditions continued to improve in December. Separately, the Australian Prime Minister, Tony Abbot, stated that the nation’s government would stick to its tax reforms agenda, which would bring in reduction in the company tax rate to 28.5% from the current 30% mark.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3636 against the USD, 0.29% lower from the New York close, as investors remained cautious ahead of the Federal Reserve’s policy decision tomorrow. In economic news, consumer confidence advanced in Italy and France for January. Elsewhere, Deutsche Bundesbank reported that the German import price remained unchanged in December. During the session, the pair traded at a high of 1.3689 and a low of 1.3628. Yesterday, the EUR traded 0.11% higher against the USD in the New York session, and closed at 1.3675.
The pair is expected to find its first support at 1.3613 and first resistance at 1.3674.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6554 against the USD, 0.19% lower from the New York close, after a report revealed that the UK’s economy grew at slower pace in the fourth quarter. During the session, the pair traded at a high of 1.6627 and a low of 1.6536. Yesterday, the British Pound traded 0.22% higher versus the Dollar in the New York session, and closed at 1.6585.
The pair is expected to find its first support at 1.6518 and first resistance at 1.6609.
USD JPY
The USD is trading at 103.11 against the JPY at 10:40 GMT this morning, 0.53% higher from the New York close. Data released overnight noted that the Japanese corporate service price advanced in December. Traders would now await for all important inflation data for December set to release on Thursday, to get further guidance in the Yen. During the session, the pair traded at a high of 103.27 and a low of 102.48. In the New York session yesterday, the USD traded 0.18% lower against the JPY, and closed at 102.57, on the back of lackluster US economic data.
The pair is expected to find its first support at 102.45 and first resistance at 103.52.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.9002 against the Swiss Franc, 0.42% higher from the New York close. With no economic releases from Switzerland today, traders would closely watch the release of the UBS consumption indicator tomorrow, to get an idea on the private consumption trends in the country. During the session, the pair traded at a high of 0.9011 and a low of 0.8953. In the New York session yesterday, the USD traded 0.16% lower against the CHF, and closed at 0.8964.
The pair is expected to find its first support at 0.8964 and first resistance at 0.9025.
USD CAD
At 10:40 GMT, the USD is trading at 1.1123 against the CAD, 0.06% higher from the New York close. During the session, the pair traded at a high of 1.1128 and a low of 1.1075. Yesterday, the USD traded 0.66% higher against the CAD in the New York session, and closed at 1.1116. In a key development, the Canadian Finance Minister stated that the nation’s upcoming budget in the next month would show a surplus of around C$4 billion and that the policymakers are not attempting to fasten the drop in the nation’s currency.
The pair is expected to find its first support at 1.1059 and first resistance at 1.1158.
AUD USD
The AUD is trading at 0.8796 against the USD, at 10:40 GMT this morning, 0.64% higher from the New York close, as the Australian business conditions improved in December, highlighting progress in hiring, trading conditions and profitability. During the session, the pair traded at a high of 0.8823 and a low of 0.8725. AUD traded 0.08% lower against the USD in the New York session, and closed at 0.8740.
The pair is expected to find its first support at 0.8736 and first resistance at 0.8840.
Gold
At 10:40 GMT, Gold is trading at $1254.09 per ounce, 0.20% lower from the New York close, amid fears that the US policymakers may start to withdraw monetary support, as the Fed commences its two-day policy meeting from today. This morning, Gold traded at a high of $1261.35 and a low of $1252.67 per ounce. In the New York session yesterday, the yellow metal traded 0.63% lower, and closed at $1256.65.
Gold has its first support at $1247.22 and first resistance at $1265.89.
Silver
Silver is trading at $19.74 per ounce, 0.20% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $19.85 and a low of $19.66. Silver traded 0.83% lower against the USD in the New York session, and closed at $19.70.
Silver has its first support at $19.54 and first resistance at $19.96.
Crude Oil
At 10:40 GMT, Oil is trading at $96.16 per barrel, 0.50% higher from the New York close, ahead of the weekly inventory update from the American Petroleum Institute. Market participants would keep a tab on the outcome of Federal Reserve policy meeting. A rollback would support the greenback and weigh on oil prices. Traders would also turn their attention to US durable goods data slated to release later in the day, to gauge the strength of the economy. This morning, Oil traded at a high of $96.28 and a low of $95.61. Yesterday, Oil traded 1.42% lower in the New York session, and closed at $95.65.
It has its first support at $95.19 and first resistance at $97.16.
Economic Snapshot
UK economy grew in line with expectations in Q4 2013
On a quarterly basis, the preliminary gross domestic product (GDP) in the UK rose 0.7% in the Q4 2013, in line with the market estimates and following a 0.8% rise in the Q3 2013. On an annual basis, GDP climbed 2.8% in Q4 2013, compared to a rise of 1.9% recorded in the Q3 2013.
German import price index unexpectedly remained flat in December
On a monthly basis, the import price index in Germany remained flat in December, against a 0.1% increase in the previous month and against an expected rise of 0.2%.
Consumer confidence in France climbed unexpectedly in January
The consumer confidence in France rose to a level of 86.0 in January, higher than market expectations of previous month’s level of 85.0.
Consumer confidence in Italy increased more than expectations in January
The consumer confidence in Italy rose to a level of 98.0 in January, higher than market expectation of a level of 96.7 and following an upwardly revised reading of 96.4 reported in the previous month.
Japan’s small business confidence index increased in January
Small business confidence in Japan rose to a level of 51.3 in January, against a level of 51.1 reported in the previous month.
Australia NAB business confidence remained steady in December
The National Bank of Australia’s business confidence remained steady at a level of 6.0 in December, following an upwardly revised similar reading recorded in the preceding month. Meanwhile, business conditions in Australia rose to 4.0 in December, against a -3.0 in the preceding month.
China industrial profits advanced at a slower pace in December
On a year to date basis, industrial profits in China rose 12.2% for the January to December period of 2013, following a 13.2% increase reported for the first eleven months of 2013.
This morning, the US dollar is trading higher against its key peers, as the US Federal Reserve (Fed) begin its two-day policy meeting, with speculation rising that the Fed may add cuts to its monthly $75 billion bond-buying program.
Data released yesterday indicated that, new home sales in the US dropped unexpectedly in December. Meanwhile, manufacturing activity in Dallas inched marginally higher in January. Ahead today, the nation’s durable goods orders, consumer confidence and another housing market gauge would remain on trader’s radar, as they would provide further insights for the US economy.
The Euro is trading in the red against the greenback. On the data front, the French and Italian consumer confidence improved in January. Yesterday, the European Central bank’s (ECB) Member, Jens Weidmann, supported the ECB President, Mario Draghi’s view that although the bloc has witnessed a gradual recovery over the past few quarters, the economic recovery continues to remain fragile and uneven. Further, he reiterated that interest rates will remain at lower levels for an extended period of time.
The Sterling fell against the USD, after reports revealed that the UK’s economic growth slowed slightly to 0.7% in the final quarter of 2013.
Elsewhere in Asia, the Aussie found support as the nation’s business conditions continued to improve in December. Separately, the Australian Prime Minister, Tony Abbot, stated that the nation’s government would stick to its tax reforms agenda, which would bring in reduction in the company tax rate to 28.5% from the current 30% mark.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3636 against the USD, 0.29% lower from the New York close, as investors remained cautious ahead of the Federal Reserve’s policy decision tomorrow. In economic news, consumer confidence advanced in Italy and France for January. Elsewhere, Deutsche Bundesbank reported that the German import price remained unchanged in December. During the session, the pair traded at a high of 1.3689 and a low of 1.3628. Yesterday, the EUR traded 0.11% higher against the USD in the New York session, and closed at 1.3675.
The pair is expected to find its first support at 1.3613 and first resistance at 1.3674.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6554 against the USD, 0.19% lower from the New York close, after a report revealed that the UK’s economy grew at slower pace in the fourth quarter. During the session, the pair traded at a high of 1.6627 and a low of 1.6536. Yesterday, the British Pound traded 0.22% higher versus the Dollar in the New York session, and closed at 1.6585.
The pair is expected to find its first support at 1.6518 and first resistance at 1.6609.
USD JPY
The USD is trading at 103.11 against the JPY at 10:40 GMT this morning, 0.53% higher from the New York close. Data released overnight noted that the Japanese corporate service price advanced in December. Traders would now await for all important inflation data for December set to release on Thursday, to get further guidance in the Yen. During the session, the pair traded at a high of 103.27 and a low of 102.48. In the New York session yesterday, the USD traded 0.18% lower against the JPY, and closed at 102.57, on the back of lackluster US economic data.
The pair is expected to find its first support at 102.45 and first resistance at 103.52.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.9002 against the Swiss Franc, 0.42% higher from the New York close. With no economic releases from Switzerland today, traders would closely watch the release of the UBS consumption indicator tomorrow, to get an idea on the private consumption trends in the country. During the session, the pair traded at a high of 0.9011 and a low of 0.8953. In the New York session yesterday, the USD traded 0.16% lower against the CHF, and closed at 0.8964.
The pair is expected to find its first support at 0.8964 and first resistance at 0.9025.
USD CAD
At 10:40 GMT, the USD is trading at 1.1123 against the CAD, 0.06% higher from the New York close. During the session, the pair traded at a high of 1.1128 and a low of 1.1075. Yesterday, the USD traded 0.66% higher against the CAD in the New York session, and closed at 1.1116. In a key development, the Canadian Finance Minister stated that the nation’s upcoming budget in the next month would show a surplus of around C$4 billion and that the policymakers are not attempting to fasten the drop in the nation’s currency.
The pair is expected to find its first support at 1.1059 and first resistance at 1.1158.
AUD USD
The AUD is trading at 0.8796 against the USD, at 10:40 GMT this morning, 0.64% higher from the New York close, as the Australian business conditions improved in December, highlighting progress in hiring, trading conditions and profitability. During the session, the pair traded at a high of 0.8823 and a low of 0.8725. AUD traded 0.08% lower against the USD in the New York session, and closed at 0.8740.
The pair is expected to find its first support at 0.8736 and first resistance at 0.8840.
Gold
At 10:40 GMT, Gold is trading at $1254.09 per ounce, 0.20% lower from the New York close, amid fears that the US policymakers may start to withdraw monetary support, as the Fed commences its two-day policy meeting from today. This morning, Gold traded at a high of $1261.35 and a low of $1252.67 per ounce. In the New York session yesterday, the yellow metal traded 0.63% lower, and closed at $1256.65.
Gold has its first support at $1247.22 and first resistance at $1265.89.
Silver
Silver is trading at $19.74 per ounce, 0.20% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $19.85 and a low of $19.66. Silver traded 0.83% lower against the USD in the New York session, and closed at $19.70.
Silver has its first support at $19.54 and first resistance at $19.96.
Crude Oil
At 10:40 GMT, Oil is trading at $96.16 per barrel, 0.50% higher from the New York close, ahead of the weekly inventory update from the American Petroleum Institute. Market participants would keep a tab on the outcome of Federal Reserve policy meeting. A rollback would support the greenback and weigh on oil prices. Traders would also turn their attention to US durable goods data slated to release later in the day, to gauge the strength of the economy. This morning, Oil traded at a high of $96.28 and a low of $95.61. Yesterday, Oil traded 1.42% lower in the New York session, and closed at $95.65.
It has its first support at $95.19 and first resistance at $97.16.
Economic Snapshot
UK economy grew in line with expectations in Q4 2013
On a quarterly basis, the preliminary gross domestic product (GDP) in the UK rose 0.7% in the Q4 2013, in line with the market estimates and following a 0.8% rise in the Q3 2013. On an annual basis, GDP climbed 2.8% in Q4 2013, compared to a rise of 1.9% recorded in the Q3 2013.
German import price index unexpectedly remained flat in December
On a monthly basis, the import price index in Germany remained flat in December, against a 0.1% increase in the previous month and against an expected rise of 0.2%.
Consumer confidence in France climbed unexpectedly in January
The consumer confidence in France rose to a level of 86.0 in January, higher than market expectations of previous month’s level of 85.0.
Consumer confidence in Italy increased more than expectations in January
The consumer confidence in Italy rose to a level of 98.0 in January, higher than market expectation of a level of 96.7 and following an upwardly revised reading of 96.4 reported in the previous month.
Japan’s small business confidence index increased in January
Small business confidence in Japan rose to a level of 51.3 in January, against a level of 51.1 reported in the previous month.
Australia NAB business confidence remained steady in December
The National Bank of Australia’s business confidence remained steady at a level of 6.0 in December, following an upwardly revised similar reading recorded in the preceding month. Meanwhile, business conditions in Australia rose to 4.0 in December, against a -3.0 in the preceding month.
China industrial profits advanced at a slower pace in December
On a year to date basis, industrial profits in China rose 12.2% for the January to December period of 2013, following a 13.2% increase reported for the first eleven months of 2013.
Happy pips.
