Forex Market Update
This morning, the greenback is trading mostly higher against most of the major currencies.
The EUR is trading lower against the USD. Earlier today, the ECB board member, Luis Maria Linde opined that a continued appreciation in the Euro-bloc’s common currency could prompt the central bank to ease its monetary policy further.
Separately, another ECB member, Peter Praet hinted that the central bank would keep its interest rates at current or lower level even if it sees improvement in the economy’s conditions. He further highlighted the extremely weak money supply in the region and emphasized that the forward guidance option used by the central bank has proved to be an extremely useful tool.
The AUD is trading lower against its US counterpart after data showed that the Westpac consumer confidence in the Australian economy declined to a 10-month low reading of 99.5 in March. Separately, the RBA Deputy Governor, Philip Lowe highlighted the importance for a rise in the nation’s labor participation rate to boost future growth rate in the economy.
Yesterday, the USD traded mostly lower in the New York session yesterday, against the key currencies.
The GBP came under pressure after the BoE Chief, Mark Carney played down speculations for an interest rate hike in the near future by stating that spare capacity in the nation is still slightly more than 1.5%.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3857 against the USD, a tad lower from the New York close. Earlier today, data showed that Euro-zone’s industrial production fell for the second consecutive month in January. During the session, the pair traded at a high of 1.3865 and a low of 1.3847. Yesterday, the EUR traded marginally higher against the USD in the New York session, and closed at 1.3861. However, initial gains in the EUR were pared after the ECB’s Vitor Constancio indicated that traders missed the ECB’s message that it was ready to act to stimulate the economy.
The pair is expected to find its first support at 1.3835 and first resistance at 1.3879.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6616 against the USD, slightly lower from the New York close. During the session, the pair traded at a high of 1.6638 and a low of 1.6606. Yesterday, the British Pound traded slightly higher versus the Dollar in the New York session, and closed at 1.6617. However, the gains were capped as the BoE Mark Carney’s comments dampened speculations for a near-term interest rate hike. Separately, NIESR estimate showed that UK GDP advanced at a faster pace in the three months to February.
The pair is expected to find its first support at 1.6592 and first resistance at 1.6645.
USD JPY
The USD is trading at 102.77 against the JPY at 9:40 GMT this morning, 0.22% lower from the New York close. Japan’s tertiary index surpassed market estimates for January while consumer confidence in Japan came in below expectations for February. During the session, the pair traded at a high of 103.12 and a low of 102.74. In the New York session yesterday, the USD traded 0.26% lower against the JPY, and closed at 102.99. The Yen advanced against the US Dollar as lingering tensions over Ukraine crisis and growing concerns on the growth-outlook of China fuelled demand for safe-haven assets.
The pair is expected to find its first support at 102.51 and first resistance at 103.19.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8776 against the Swiss Franc, marginally lower from the New York close. During the session, the pair traded at a high of 0.8789 and a low of 0.8775. In the New York session yesterday, the USD traded 0.13% lower against the CHF, and closed at 0.8777.
The pair is expected to find its first support at 0.8759 and first resistance at 0.8800.
USD CAD
At 9:40 GMT, the USD is trading at 1.1116 against the CAD, 0.09% higher from the New York close. During the session, the pair traded at a high of 1.1121 and a low of 1.1107. Yesterday, the USD traded a tad higher against the CAD in the New York session, and closed at 1.1106.
The pair is expected to find its first support at 1.1080 and first resistance at 1.1140.
AUD USD
The AUD is trading at 0.8942 against the USD, at 9:40 GMT this morning, 0.36% lower from the New York close, after the Westpac consumer confidence in Australia registered a 10-month low reading in March. Also earlier today, the RBA Deputy Governor, Philip Lowe, highlighted the need for a rise in labor participation rate to boost economic growth in the nation. During the session, the pair traded at a high of 0.8981 and a low of 0.8937. AUD traded 0.64% lower against the USD in the New York session, and closed at 0.8974.
The pair is expected to find its first support at 0.8894 and first resistance at 0.9020.
Gold
At 9:40 GMT, Gold is trading at $1355.47 per ounce, 0.49% higher from the New York close on strong demand for safe-haven assets. This morning, Gold traded at a high of $1363.97 and a low of $1345.45 per ounce. In the New York session yesterday, the yellow metal traded slightly higher, and closed at $1348.80 as lingering concerns over Ukraine and encouraging inflows in SPDR Gold Trust bolstered the demand-outlook of the commodity.
Gold has its first support at $1340.86 and first resistance at $1367.03.
Silver
Silver is trading at $20.84 per ounce, 0.13% lower from the New York close, at 9:40 GMT this morning, as traders’ preference for safe-haven assets increased amid geo-political tensions in Ukraine. This morning, Silver traded at a high of $21.20 and a low of $20.81. Silver traded 1.42% lower against the USD in the New York session, and closed at $20.87.
Silver has its first support at $20.57 and first resistance at $21.22.
Crude Oil
At 9:40 GMT, Oil is trading at $98.57 per barrel, 10% lower from the New York close, after the American Petroleum Institute reported 2.63 million barrels rise in the US crude stockpiles last week. Meanwhile, the recent batch of soft economic data from China further weighed on the demand-outlook of the commodity. This morning, Oil traded at a high of $99.6 and a low of $98.52. Yesterday, Oil traded 1.38% higher in the New York session, and closed at $99.54, drawing support from tensions in Ukraine.
It has its first support at $97.55 and first resistance at $100.55.
Economic Snapshot
Euro-zone industrial production declined unexpectedly in January
On a monthly basis, industrial production in the Euro-zone dropped 0.2% in January, compared to a 0.4% fall recorded in the previous month. Markets had expected industrial production to rise 0.5% in January.
France non-farm payrolls rose in-line with market expectations for Q4 2013
On a quarterly basis, the final non-farm payrolls in France rose 0.1% in Q4 2013, in line with the preliminary estimate and following a 0.1% fall recorded in the preceding quarter.
Japan’s consumer confidence index declined more than expected in February
The Cabinet Office of Japan has reported that the consumer confidence index in Japan fell to a level of 38.3 in February, more than market expectation of a level of 40.0 and compared to a reading of 40.5 reported in the previous month.
Japan economy recovering at a moderate pace, indicated BoJ monthly survey
The Bank of Japan (BoJ), in its latest monthly economic survey, stated that Japanese economy has continued to recover moderately, largely due to a pickup in business fixed investments, improvement in corporate profits along with a rise in public investment.
Home loan approvals in Australia remained flat in January
On a seasonally adjusted monthly basis, home loan approvals in Australia remained flat in January, following a revised 3.3% decrease recorded in the preceding month. Market had expected Australia’s home loan approvals to rise 0.5% in January. Additionally, investment lending in Australia declined 3.3% in January, following a revised rise of 2.5% recorded in the previous month.
Happy pips.
