Forex Market Update
This morning, the greenback is trading mostly lower against most of the major currencies.
The EUR is trading higher against the USD today, after the final reading of the German GDP for the fourth quarter was in line with the previous estimates. Yesterday, the common currency faced some resistance after the European Central Bank (ECB) opined that it could discuss introducing negative interest rate at its policy meeting in March. Meanwhile, in Italy, Prime Minister, Matteo Renzi won his first confidence vote in the parliament.
The British Pound is trading higher this morning, after BoE policymaker, Ian McCafferty suggested the likeliness of the central bank hiking its interest rate in the second quarter of 2015 were “not unreasonable” and that the timing would solely depend on the inflation data.
Earlier today, the Canadian Finance Minister, Jim Flaherty hinted that his government would emphasize on reducing the taxes for families before lowering debt and boosting spending in the nation. Separately, a New York University economist, Nouriel Roubin, opined that the Bank of Canada (BoC) should implement measures to weaken its currency and promote growth in its economy.
Yesterday, the USD traded lower in the New York session against the key currencies. In a speech, the Dallas Fed President, Richard Fisher stated that he would like the central bank to continue tapering the size of its stimulus measure by $10 billion at it upcoming policy meetings.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3747 against the USD, 0.09% higher from the New York close, after final reading of the German GDP data showed that the economy expanded in-line with market expectations in the fourth-quarter. During the session, the pair traded at a high of 1.3764 and a low of 1.3732. Yesterday, the EUR traded marginally higher against the USD in the New York session, and closed at 1.3735. However, the gains in the Euro were capped after the ECB’s Ignazio Visco hinted that policymakers could consider negative deposit rate at its upcoming policy meeting in March.
The pair is expected to find its first support at 1.3714 and first resistance at 1.3773.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6693 against the USD, 0.23% higher from the New York close, after BoE’s Ian McCafferty stated that the central bank would opt for an earlier rate hike if inflation pressure picks up pace again and after upbeat mortgage approvals data. During the session, the pair traded at a high of 1.6707 and a low of 1.6654. Yesterday, the British Pound traded 0.08% higher versus the Dollar in the New York session, and closed at 1.6654, buoyed by the BoE Governor, Mark Carney’s comments.
The pair is expected to find its first support at 1.6615 and first resistance at 1.6739.
USD JPY
The USD is trading at 102.39 against the JPY at 10:40 GMT this morning, 0.12% lower from the New York close. On the economic front, Japan’s corporate service price index rose 0.8% (YoY) in January, less than market expectations and compared to a 1.1% increase witnessed in December. During the session, the pair traded at a high of 102.64 and a low of 102.30. In the New York session yesterday, the USD traded 0.06% higher against the JPY, and closed at 102.51.
The pair is expected to find its first support at 102.19 and first resistance at 102.61.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.8872 against the Swiss Franc, 0.19% lower from the New York close. During the session, the pair traded at a high of 0.8893 and a low of 0.8868. In the New York session yesterday, the USD traded tad lower against the CHF, and closed at 0.8889.
The pair is expected to find its first support at 0.8849 and first resistance at 0.8903.
USD CAD
At 10:40 GMT, the USD is trading at 1.1077 against the CAD, 0.15% higher from the New York close. Earlier today, an economist from the New York University, Nouriel Roubini suggested the BoC to undertake aggressive monetary policies to weaken its currency and support growth in the Canadian economy. During the session, the pair traded at a high of 1.1082 and a low of 1.1059. Yesterday, the USD traded 0.32% lower against the CAD in the New York session, and closed at 1.1060.
The pair is expected to find its first support at 1.1045 and first resistance at 1.1117.
AUD USD
The AUD is trading at 0.9024 against the USD, at 10:40 GMT this morning, 0.12% lower from the New York close. During the session, the pair traded at a high of 0.9046 and a low of 0.9011. AUD traded 0.50% higher against the USD in the New York session, and closed at 0.9035.
The pair is expected to find its first support at 0.8984 and first resistance at 0.9058.
Gold
At 10:40 GMT, Gold is trading at $1332.95 per ounce, 0.30% lower from the New York close. This morning, Gold traded at a high of $1340.04 and a low of $1331.44 per ounce. In the New York session yesterday, the yellow metal traded 0.31% higher, and closed at $1336.98, as the latest batch of soft economic data from the US and geopolitical tensions in Ukraine, Venezuela and Egypt bolstered the safe-haven appeal of the metal.
Gold has its first support at $1327.77 and first resistance at $1339.08.
Silver
Silver is trading at $21.75 per ounce, 1.04% lower from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $22.03 and a low of $21.71. Silver traded 0.34% lower against the USD in the New York session, and closed at $21.98, mirroring losses in the prices of industrial metals.
Silver has its first support at $21.58 and first resistance at $22.05.
Crude Oil
At 10:40 GMT, Oil is trading at $102.18 per barrel, 0.50% lower from the New York close, ahead of the American Petroleum Institute’s (API) weekly report on the US crude supplies. This morning, Oil traded at a high of $102.86 and a low of $102.02. Yesterday, Oil traded 0.63% higher in the New York session and closed at $102.74, as news of bombing and shooting in Iraq sparked fresh concerns on the supply-outlook of the commodity from the Middle East region.
It has its first support at $101.62 and first resistance at $103.10.
Economic Snapshot
BBA mortgage approvals in UK rose more than market estimate in January
BBA mortgage approvals in the UK climbed to a level of 49.97K in January, higher than market expectation of a level of 47.15K and compared to a revised reading of 47.08K reported in the previous month.
CBI distributive trades survey - realized in the UK surpassed expectations in February
The Confederation of British Industry reported that CBI distributive trades survey - realized in the UK has risen to a level of 37.0% in February, higher than market expectations of a level of 15.0% and compared to a reading of 14.0% reported in the previous month.
German economy expanded in line with the preliminary estimate in the fourth quarter of 2013
On a seasonally adjusted quarterly basis, Germany’s final GDP advanced 0.4% in the Q4 2013, in line with the preliminary estimate and compared to a 0.3% rise reported in the preceding quarter. On a non-seasonally adjusted annual basis, German economy grew 1.3% in the Q4 2013, after recording a rise of 1.1% in the Q3 2013. On an annual working day adjusted basis, German GDP climbed 1.4% in the Q4 2013, compared to a 0.6% rise reported in the previous quarter.
German exports rose more than market forecast in Q4 2013
On a quarterly basis, Germany’s exports climbed 2.6% in the fourth quarter of 2013, higher than market forecast of a rise of 1.7% and compared to an upwardly revised increase of 0.2% recorded in the previous quarter. On a quarter-on-quarter basis, imports in Germany rose 0.6% in the Q4 2013, following a 0.8% rise recorded in the previous quarter.
France business climate indicator stood pat in February
Industrial business climate indicator in France remained steady at a level of 94.0 in February, compared to the previous month.
Retail sales in Italy fell unexpectedly in December
On a non-seasonally adjusted annual basis, retail sales in Italy declined 2.6% in December, compared to a revised rise of 0.2% recorded in the previous month. Markets were expecting retail sales to rise 0.2% in December.
Italy’s consumer confidence fell unexpectedly
Consumer confidence in Italy dropped to a level of 97.5 in February, against market expectations of a level of 98.5 and compared to a reading of 98.0 reported in the previous month.
Italian trade balance swings to a deficit in January
The National Institute of Statistics of Italy has reported that Italian trade with non-EU countries swung to a deficit of €0.89 billion in January from a revised surplus of €3.41 billion reported last month.
Spain’s producer price index declined in January
On an annual basis, Spain’s producer price index fell 1.8% in January, compared to a 0.6% rise recorded in the previous month.
China CB leading economic index rose in January
The Conference Board (CB) leading economic index for China rose 1.2% in January, following a revised increase of 0.8% in the preceding month.
Happy pips.
