Forex Market Update
This morning, the greenback is trading lower against its key peers.
On Friday, the USD rose after data indicated that consumer sentiment in the US and the manufacturing activity in Chicago posted upbeat readings in January.
Additionally, the Dallas Fed President indicated that the central bank must try to wind up its bond purchases as soon as possible. Ahead in the week, investors would track speeches from the other Fed Presidents for their opinions on the US economy and how they would they like to adjust the pace of the monthly bond purchases in the future.
The Euro is trading higher, after data released today morning indicated that the Euro-zone’s manufacturing purchasing managers’ index (PMI) advanced to a reading of 54.0 in January, higher than the preliminary estimate of 53.9. Additionally, manufacturing PMI of Germany and France also boosted investors’ risk appetite.
The Swiss Franc advanced against the USD this morning, as manufacturing activity in Switzerland grew at the fastest rate than expected in the first month of 2014.
The Pound came under pressure, after data revealed that manufacturing activity in the UK expanded at the slowest pace in three months in January.
The Aussie is trading higher against the USD, as investors gear up for the Reserve Bank of Australia’s (RBA) meeting scheduled later tomorrow.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3514 against the USD, 0.07% higher from the New York close, as manufacturing activity in most of the major economies in the Euro bloc improved in January. Ahead in the week, investors would keenly wait for the outcome of ECB’s monetary policy meeting. During the session, the pair traded at a high of 1.3520 and a low of 1.3477. Yesterday, the EUR traded 0.14% lower against the USD in the New York session, and closed at 1.3504.
The pair is expected to find its first support at 1.3469 and first resistance at 1.3566.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6334 against the USD, 0.64% lower from the New York close, as manufacturing PMI in the UK deteriorated in January, triggering speculations that the British economy might not be able to sustain its previous year’s growth momentum. Data released overnight showed that, house prices in the UK rose at a slower pace in January. During the session, the pair traded at a high of 1.6443 and a low of 1.6330. Yesterday, the British Pound traded 0.14% lower versus the Dollar in the New York session, and closed at 1.6440.
The pair is expected to find its first support at 1.6280 and first resistance at 1.6437.
USD JPY
The USD is trading at 101.73 against the JPY at 10:40 GMT this morning, 0.60% lower from the New York close. During the session, the pair traded at a high of 102.42 and a low of 101.70. In the New York session yesterday, the USD traded 0.10% higher against the JPY, and closed at 102.34.
The pair is expected to find its first support at 101.46 and first resistance at 102.25.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.9043 against the Swiss Franc, 0.09% lower from the New York close. The Swiss Franc found support after a report revealed that manufacturing activity in Switzerland rose more than market expectations for January. During the session, the pair traded at a high of 0.9083 and a low of 0.9036. In the New York session yesterday, the USD traded 0.69% lower against the CHF, and closed at 0.9051.
The pair is expected to find its first support at 0.9006 and first resistance at 0.9081.
USD CAD
At 10:40 GMT, the USD is trading at 1.1059 against the CAD, 0.54% lower from the New York close. During the session, the pair traded at a high of 1.1135 and a low of 1.1052. Yesterday, the USD traded 0.69% lower against the CAD in the New York session, and closed at 1.1120. The Loonie inched higher after data revealed that the Canadian economy grew in line with market expectations in November.
The pair is expected to find its first support at 1.0999 and first resistance at 1.1173.
AUD USD
The AUD is trading at 0.8795 against the USD, at 10:40 GMT this morning, 0.49% higher from the New York close, ahead of tomorrow’s monetary policy meeting by the RBA, amid increased speculations that the central bank might leave the rates unchanged. In economic news, the Australian AiG performance of manufacturing index fell to 46.7 in January. Meanwhile, building permits dropped in December. During the session, the pair traded at a high of 0.8799 and a low of 0.8737. AUD traded 0.47% higher against the USD in the New York session, and closed at 0.8752.
The pair is expected to find its first support at 0.8726 and first resistance at 0.8831.
Gold
At 10:40 GMT, Gold is trading at $1246.42 per ounce, 0.14% higher from the New York close, as the greenback weakened. This morning, Gold traded at a high of $1247.77 and a low of $1240.97 per ounce. In the New York session yesterday, the yellow metal traded 0.35% lower, and closed at $1244.69.
Gold has its first support at $1239.02 and first resistance at $1254.41.
Silver
Silver is trading at $19.25 per ounce, 0.34% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $19.29 and a low of $19.09. Silver traded 0.85% lower against the USD in the New York session, and closed at $19.18.
Silver has its first support at $19.06 and first resistance at $19.45.
Crude Oil
At 10:40 GMT, Oil is trading at $97.14 per barrel, 0.40% lower from the New York close. This morning, Oil traded at a high of $97.54 and a low of $96.78. Yesterday, Oil traded 0.25% higher in the New York session, and closed at $97.50.
It has its first support at $96.48 and first resistance at $98.09.
Economic Snapshot
UK house prices climbed in January, indicated Hometrack
On a monthly basis, the average asking prices for a house in UK rose 0.3% in January, compared to a 0.5% rise recorded in the previous month.
UK manufacturing PMI dropped unexpectedly in January
The manufacturing purchasing managers’ index (PMI) in UK fell to a reading of 56.7 in January, following to a downwardly revised reading of 57.2 reported in the preceding month. Markets had expected PMI to rise to a reading of 57.3 in January.
Euro-zone manufacturing PMI expands more than preliminary estimate in January
The final manufacturing PMI in the Euro-zone increased to a reading of 54.0 in January, more than preliminary estimate of 53.9 and compared a reading of 52.7 reported in the previous month.
Germany manufacturing PMI advanced more than the flash estimate in January
The final manufacturing PMI in Germany rose to a reading of 56.5 in January, from a level of 54.3 in the preceding month and more than the flash estimate of 56.3.
French manufacturing PMI rises more than the flash estimate in January
The final manufacturing PMI in France rose to a reading of 49.3 in January, more than the preliminary estimate of a level of 48.8 and after a reading of 47.0 recorded in the preceding month.
Italian manufacturing PMI unexpectedly dropped in January
The manufacturing PMI in Italy fell to a level of 53.1 in January, compared to a reading of 53.3 recorded in the previous month. Markets were expecting the index to increase to a reading of 53.5 in January.
Spanish manufacturing activity expanded more than estimates in January
The manufacturing PMI in Spain rose to a reading of 52.2 in January, compared to a level of 50.8 reported in the previous month. Markets were expecting that the Spanish manufacturing PMI would rise to a level of 51.5 in January.
Swiss manufacturing PMI increased more than estimates in January
The State Secretariat for Economic Affairs (SVME) PMI in Switzerland rose to a reading of 56.1 in January, compared to an upwardly revised reading of 55.0 in the previous month. Market had expected the index to rise to a reading of 55.4 in January.
Australia’s RBA commodity price index decline in January
On an annual basis, the RBA commodity index in SDR terms in Australia dropped 9.9% in January, compared to a revised 3.6% fall recorded in December.
Australia building approvals dropped more than anticipated in December
On a monthly basis, building approvals in Australia dropped 2.9% in December, compared to a revised 0.3% decline in the preceding month. Markets were expecting building approvals to drop 0.5% in December.
Chinese official non-manufacturing PMI fell in January
The NBS non-manufacturing PMI in China dropped to a reading of 53.4 in January, from a reading of 54.6 in the previous month.
Happy pips.
