Forex Market Update
This morning, the greenback is trading mostly higher against most of the major currencies, ahead of the Fed Chief, Janet Yellen’s testimony before the Senate.
This morning, the EUR is trading on a lower footing following mixed economic data out of the Euro region and after risk appetite decreased among investors following mounting tensions in Ukraine. Meanwhile, in a noteworthy development, yield of Italy’s 5-year and 10-year bond auction declined to 2.14% and 3.42% respectively.
The JPY is trading higher against the USD as ongoing social unrest in Ukraine and Thailand spurred demand for safe-haven assets. Earlier today, the Bank of Japan (BoJ) Board member, Takehiro Sato expressed confidence in Japan achieving its 2% inflation target in a sustainable manner and hinted the possibility for the central bank opting for a flexible approach in deciding the time for exiting its stimulus.
Yesterday, the greenback traded higher in the New York session against the key currencies, after new home sales in the US rose to five and a half year high in January. Positive sentiment was also fuelled after two eminent Fed policymakers, Richard Fisher and Sandra Pianalto hinted a continuation in the tapering of stimulus measure at a steady pace. However, another policymaker, Eric Rosengren, dissented and suggested the Fed to be “very patient” in withdrawing its stimulus package.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3651 against the USD, 0.26% lower from the New York close amid mounting risk aversion among traders following news that Russia put fighter jets on combat alert due to escalating tensions in Ukraine. The currency also came under pressure amid concerns that German annual inflation rate would fall in February from January. During the session, the pair traded at a high of 1.3697 and a low of 1.3651. Yesterday, the EUR traded 0.31% lower against the USD in the New York session, and closed at 1.3686.
The pair is expected to find its first support at 1.3613 and first resistance at 1.3717.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6633 against the USD, 0.23% lower from the New York close. During the session, the pair traded at a high of 1.6685 and a low of 1.6638. Yesterday, the British Pound traded marginally lower versus the Dollar in the New York session, and closed at 1.6671. The US Dollar advanced against the UK Pound after data showed that new home sales in the US rose at the fastest pace in five years in January.
The pair is expected to find its first support at 1.6604 and first resistance at 1.6680.
USD JPY
The USD is trading at 101.84 against the JPY at 10:40 GMT this morning, 0.55% lower from the New York close. The Yen is trading higher against the US Dollar as social unrest in Ukraine boosted the demand for safe-haven assets. Meanwhile, in Japan, BoJ’s Takehiro Sato opined that the nation could achieve its 2% inflation target sustainably and hinted flexibility in the BoJ’s timing to exit its stimulus measure. During the session, the pair traded at a high of 102.46 and a low of 101.85. In the New York session yesterday, the USD traded slightly higher against the JPY, and closed at 102.40.
The pair is expected to find its first support at 101.55 and first resistance at 102.38.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.8908 against the Swiss Franc, tad higher from the New York close. The Swiss Franc lost ground after the Swiss GDP slowed more-than-expected in the fourth quarter while the employment level in Switzerland also deteriorated in the fourth quarter. During the session, the pair traded at a high of 0.8920 and a low of 0.8901. In the New York session yesterday, the USD traded 0.25% higher against the CHF, and closed at 0.8907.
The pair is expected to find its first support at 0.8878 and first resistance at 0.8935.
USD CAD
At 10:40 GMT, the USD is trading at 1.1132 against the CAD, marginally lower from the New York close. During the session, the pair traded at a high of 1.1143 and a low of 1.1124. Yesterday, the USD traded 0.38% higher against the CAD in the New York session, and closed at 1.1133, following a surge in the US new home sales data for January.
The pair is expected to find its first support at 1.1085 and first resistance at 1.1162.
AUD USD
The AUD is trading at 0.8916 against the USD, at 10:40 GMT this morning, 0.59% lower from the New York close, after a report showed that private capital expenditure in Australia fell to the lowest level in the past four years. During the session, the pair traded at a high of 0.8971 and a low of 0.8913. AUD traded 0.14% lower against the USD in the New York session, and closed at 0.8969.
The pair is expected to find its first support at 0.8877 and first resistance at 0.8981.
Gold
At 10:40 GMT, Gold is trading at $1333.05 per ounce, 0.25% higher from the New York close, as geo-political tension in Ukraine and Thailand spurred demand for safe-haven assets. Meanwhile speculation for a rise in Chinese gold demand also supported the price of gold. Traders await the Fed Chief, Janet Yellen’s speech for further cues in the gold price movement. This morning, Gold traded at a high of $1333.45 and a low of $1323.96 per ounce. In the New York session yesterday, the yellow metal traded 0.15% lower, and closed at $1329.77, pressurized by a stronger US Dollar.
Gold has its first support at $1323.22 and first resistance at $1342.04.
Silver
Silver is trading at $21.41 per ounce, 0.85% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $21.42 and a low of $21.00. Silver traded 2.00% lower against the USD in the New York session, and closed at $21.23, amid broad gains in the US Dollar.
Silver has its first support at $20.96 and first resistance at $21.90.
Crude Oil
At 10:40 GMT, Oil is trading at $102.54 per barrel, tad lower from the New York close. This morning, Oil traded at a high of $102.64 and a low of $102.19. Yesterday, Oil traded 0.07% higher in the New York session, and closed at $102.56 after a US government report revealed a less-than-expected rise in the weekly crude supplies last week.
It has its first support at $102.11 and first resistance at $102.94.
Economic Snapshot
Industrial confidence in the Euro-zone rose unexpectedly in February
Industrial confidence in the Euro-zone rose to a level of -3.4 in February, compared to a revised reading of -3.8 reported in the previous month, against the market estimate of a fall to a level of -4.0. Meanwhile, economic sentiment indicator in the Euro-zone rose to a level of 101.2 in February, compared to a revised reading of 101.0 reported in the previous month. The final consumer confidence in the Euro-zone declined to a level of -12.7 in February, in line with preliminary estimate and compared to a level of -11.7 reported in the previous month. Services sentiment indicator in the Euro-zone advanced to a level of 3.2 in February, compared to a reading of 2.4 reported in the previous month.
Germany’s unemployment level dropped more than market estimate in February
The number of people unemployed in Germany declined by 14.0K in February, higher than market expectation of a decline of 10.0K and compared declines of 28.0K reported in the previous month. Meanwhile, on a seasonally adjusted basis, the unemployment rate in Germany remained unchanged at 6.8% in February, compared to the previous month.
France consumer confidence index fell unexpectedly in February
Consumer confidence index in France dropped to a level of 85.0 in February, compared to a reading of 86.0 reported in the previous month. Market had anticipated the index to remain steady in February.
Spain’s GDP rose less than the preliminary estimate in the Q4 2013
On a quarterly basis the final gross domestic product (GDP) in Spain rose 0.2% in the Q4 2013, less than the preliminary estimate of 0.3% rise and compared to an increase of 0.1% recorded in the Q3 2013.
Swiss economy expanded at a slower than anticipated pace in the Q4 2013
On a seasonally adjusted quarterly basis, Swiss Gross Domestic Product (GDP) rose 0.2% in the Q4 2013, less than market expectation of a 0.4% rise and compared to a 0.5% rise posted in the Q3 2013.
Swiss employment declined marginally in the Q4 2013
The number of people employed in Switzerland fell marginally to 4.19 million in Q4 2013, compared to a level of 4.20 million recorded in the previous quarter.
Fed to persist with QE3 tapering if economy continues to improve, indicated Fed’s Pianalto
The Federal Reserve (Fed) Bank of Cleveland President, Sandra Pianalto, opined that the central bank would continue scaling back its monthly asset purchases program as long as the economy performs as expected.
Australia’s private capital expenditure declined more than expected in the Q4 2013
On a seasonally adjusted quarterly basis, private capital expenditure in Australia fell 5.2% in Q4 2013, compared to a 2.6% increase recorded in the previous quarter.
Happy pips.
