Forex Market Update
This morning, the greenback is trading mostly lower against most of the major currencies.
The EUR pared some of its initial gains after the consumer inflation rate in the Euro-zone unexpectedly slowed in February. On Friday, Moody's Investors Service upgraded its outlook on the European Union’s sovereign rating to “Stable” from “Negative.”
The AUD is trading higher against the USD after the Westpac Banking Corp highlighted its expectation for the RBA to refrain from slashing its key interest rate further in 2014. Positive sentiment was also fuelled after the Moody’s rating agency dismissed concerns on the growth-outlook of China, Australia’s largest trading partner, by projecting a relatively robust growth in 2014-15.
In a noteworthy event, Ukraine’s Crimea voted in favor to split from Ukraine and join Russia. However, the decision failed to garner acceptance from the US President, Barack Obama, who in turn stated that Crimea’s decision would not be recognized by the US or the international community.
On Friday, in the New York session the greenback traded mostly lower against the key currencies after Reuters/University of Michigan reported that its index on US consumer sentiment unexpectedly declined to a four-month low reading in March. However, the negative sentiment for the USD were somewhat pared after the Dallas Fed President, Richard Fisher, opined that recovery in the US economy is “proceeding steadily.”
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3907 against the USD, tad higher from the New York close. On the economic front, the Euro-zone CPI rose 0.7 % (YoY) in February, defying market expectations for the CPI to come in unchanged at previous month’s level of 0.8%. During the session, the pair traded at a high of 1.3916 and a low of 1.3883. On Friday, the EUR traded 0.17% higher against the USD in the New York session, and closed at 1.3904. Moody’s Investors Service upgraded its outlook on European Union rating to “Stable” from “Negative.”
The pair is expected to find its first support at 1.3873 and first resistance at 1.3939.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6638 against the USD, 0.06% higher from the New York close. Earlier today, Rightmove house price index in the UK advanced 1.6% (MoM) in March, following 3.3% (MoM) increase in the previous month. During the session, the pair traded at a high of 1.6654 and a low of 1.6631. On Friday, the British Pound traded 0.20% higher versus the Dollar in the New York session, and closed at 1.6628. A BoE policymaker, Charlie Bean hinted the possibility for the Britain economy to register a stronger growth than official predictions.
The pair is expected to find its first support at 1.6599 and first resistance at 1.6666.
USD JPY
The USD is trading at 101.77 against the JPY at 9:40 GMT this morning, 0.49% higher from the New York close. Early morning, the BoJ Governor, Haruhiko Kuroda indicated that the nation was on track to meet the BoJ’s 2% inflation target and reiterated his willingness to alter monetary policy should risks materialize. During the session, the pair traded at a high of 101.87 and a low of 101.33. In the Friday’s New York session, the USD traded 0.06% lower against the JPY, and closed at 101.28. The Yen gained ground as tensions in Ukraine fuelled demand for safe-haven assets.
The pair is expected to find its first support at 101.36 and first resistance at 102.03.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8740 against the Swiss Franc, 0.15% higher from the New York close. During the session, the pair traded at a high of 0.8750 and a low of 0.8722. In the New York session on Friday, the USD traded 0.13% lower against the CHF, and closed at 0.8727, hurt by a lackluster US consumer sentiment data.
The pair is expected to find its first support at 0.8713 and first resistance at 0.8759.
USD CAD
At 9:40 GMT, the USD is trading at 1.1059 against the CAD, 0.35% lower from the New York close. During the session, the pair traded at a high of 1.1108 and a low of 1.1062. On Friday, the USD traded 0.18% higher against the CAD in the New York session, and closed at 1.1098. However the gains in the US Dollar were capped after data showed that preliminary reading of the Reuters/Michigan US consumer sentiment index fell to a four-month low reading in March.
The pair is expected to find its first support at 1.1040 and first resistance at 1.1093.
AUD USD
The AUD is trading at 0.9079 against the USD, at 9:40 GMT this morning, 0.60% higher from the New York close, after the Westpac Banking Corp dropped its forecast for a further rate cut by RBA this year, by stating that it expects flat rates throughout 2014 in the Australian economy. In economic news, new motor vehicle sales in Australia rose 0.1% (MoM) in February, following a 4.0% drop in the preceding month. During the session, the pair traded at a high of 0.9085 and a low of 0.9015. AUD traded 0.09% lower against the USD in the Friday’s New York session, and closed at 0.9025.
The pair is expected to find its first support at 0.9030 and first resistance at 0.9106.
Gold
At 9:40 GMT, Gold is trading at $1379.21 per ounce, 0.41% lower from the New York close. This morning, Gold traded at a high of $1392.22 and a low of $1378.08 per ounce. In the New York session on Friday, the yellow metal traded 0.17% higher, and closed at $1384.84, as a weaker US Dollar and ongoing political tensions in Ukraine bolstered the demand outlook of the safe-haven metal.
Gold has its first support at $1367.75 and first resistance at $1391.44.
Silver
Silver is trading at $21.39 per ounce, 0.87% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $21.64 and a low of $21.25. Silver traded 0.61% lower against the USD in the Friday’s New York session, and closed at $21.58, tracking losses in the prices of industrial metals.
Silver has its first support at $21.16 and first resistance at $21.71.
Crude Oil
At 9:40 GMT, Oil is trading at $98.79 per barrel, 0.40% lower from the New York close. This morning, Oil traded at a high of $99.25 and a low of $98.54. On Friday, Oil traded 0.36% higher in the New York session, and closed at $99.22, after the IEA raised its forecast on global oil demand by 1.4 million barrels a day this year. Meanwhile, lingering tensions in Ukraine sparked concerns on the supply outlook of the commodity.
It has its first support at $98.20 and first resistance at $99.38.
Economic Snapshot
UK Rightmove house prices rose at a slower pace in March
On an annual basis, the Rightmove house price index in UK rose 6.8% in March, compared to a 6.9% rise in the previous month.
Consumer price index in Eurozone increased less than preliminary estimate in February
The Eurostat has reported that on an annual basis, the final Consumer Price Index (CPI) in the Eurozone rose 0.7% in February, less than the preliminary estimate of a rise of 0.8% and compared to a 0.8% increase reported in the previous month. Meanwhile, the core consumer price index rose 1.0% in February, following a 0.8% rise recorded in January.
Australia’s new motor vehicle sales rebounded in February
The Australian Bureau of Statistics reported that on a seasonally adjusted monthly basis, new motor vehicle sales in Australia rose 0.1% in February, following a revised fall of 4.0% recorded in the preceding month.
Happy pips.
