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 planned speech, later today.
The EUR is trading higher against the USD despite a report indicating that annual consumer inflation rate in the region fell its lowest level since 2009. Separately data showed that retail sales in Germany jumped unexpectedly in February while French GDP rose in-line with markets estimates in the fourth quarter. During the weekend, the ECB’s Jens Weidmann opined that the Euro-zone economy was not in deflationary cycle and urged the central bank to stop over reacting to slowdown in inflation, largely triggered by cyclical factors.
The GBP came under pressure for a brief period of time, after data showed that UK mortgage approvals fell more-than-forecast in February while consumer credit fell again in February. Separately, the Hometrack house prices in the UK increased for a 14th consecutive month in March.
In Friday’s New York session, the greenback traded mixed against the key currencies, as a downbeat US Reuters/Michigan consumer sentiment data overshadowed a strong personal income and personal spending data from the US. Meanwhile, the Kansas City Fed President, Esther George highlighted her expectations for inflation rate in the nation to gradually rise towards the central bank’s 2% target. Furthermore, she indicated that policymakers did not have a specific date in mind for raising interest rate.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3777 against the USD, 0.19% higher from the New York close, despite an official report showing that annual consumer inflation rate in the Euro-zone economy fell to 0.5% in March, the lowest level since November 2009. During the session, the pair traded at a high of 1.3781 and a low of 1.3748. On Friday, the EUR traded 0.07% higher against the USD in the New York session, and closed at 1.3751. However, a lackluster German consumer inflation data capped the gains in the Euro-zone’s common currency.
The pair is expected to find its first support at 1.3734 and first resistance at 1.3801.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6645 against the USD, flat from the New York close. In economic news, UK mortgage approvals declined to a four month low reading of 70,309 loans in February while consumer lending rose less-than-expected by £552.0 million last month. Overall net lending to individuals in the UK increased by £2.3 billion in February, up from previous month’s net lending of £2.1 billion. During the session, the pair traded at a high of 1.6650 and a low of 1.6631. On Friday, the British Pound traded 0.12% higher versus the Dollar in the New York session, and closed at 1.6645.
The pair is expected to find its first support at 1.6612 and first resistance at 1.6665.
USD JPY
The USD is trading at 103.23 against the JPY at 9:40 GMT this morning, 0.41% higher from the New York close. The JPY came under pressure, after industrial production in Japan unexpectedly dropped in February while the Nomura/ JMMA manufacturing purchasing manager index slowed for the second straight month in March. Another report showed that annual housing starts in Japan registered a less than expected rise in February. During the session, the pair traded at a high of 103.28 and a low of 102.85. In the New York session on Friday, the USD traded 0.38% higher against the JPY, and closed at 102.80.
The pair is expected to find its first support at 102.57 and first resistance at 103.58.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8857 against the Swiss Franc, 0.14% lower from the New York close. Earlier today, data from Switzerland showed that the KOF leading indicator edged down to a reading of 1.99 in March, defying analysts’ expectations for the indicator to come in unchanged at previous month’s reading of 2.03. During the session, the pair traded at a high of 0.8891 and a low of 0.8858. In the New York session on Friday, the USD traded tad higher against the CHF, and closed at 0.8869.
The pair is expected to find its first support at 0.8840 and first resistance at 0.8883.
USD CAD
At 9:40 GMT, the USD is trading at 1.1066 against the CAD, 0.10% higher from the New York close. Traders keenly await Canada’s January GDP data for further cues in the Canadian Dollar. During the session, the pair traded at a high of 1.1069 and a low of 1.1047. On Friday, the USD traded 0.11% higher against the CAD in the New York session, and closed at 1.1055.
The pair is expected to find its first support at 1.1024 and first resistance at 1.1094.
AUD USD
The AUD is trading at 0.9228 against the USD, at 9:40 GMT this morning, 0.26% lower from the New York close. Early morning, the Housing Industry Association reported that sales of new homes in Australia rose in February on account of strong demand for detached houses while the RBA indicated that private sector credit rose 0.4% (MoM) in February, similar to previous month’s pace of rise. During the session, the pair traded at a high of 0.9261 and a low of 0.9224. AUD traded 0.13% higher against the USD in the Friday’s New York session, and closed at 0.9252.
The pair is expected to find its first support at 0.9206 and first resistance at 0.9261.
Gold
At 9:40 GMT, Gold is trading at $1296.14 per ounce, 0.07% higher from the New York close. This morning, Gold traded at a high of $1298.73 and a low of $1290.40 per ounce. In the New York session on Friday, the yellow metal traded 0.37% higher, and closed at $1295.27
Gold has its first support at $1288.33 and first resistance at $1301.34.
Silver
Silver is trading at $20.00 per ounce, 0.86% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $20.00 and a low of $19.74. Silver traded 0.11% higher against the USD in the Friday’s New York session, and closed at $19.83, amid broad gains in the prices of industrial metals.
Silver has its first support at $19.75 and first resistance at $20.12.
Crude Oil
At 9:40 GMT, Oil is trading at $101.59 per barrel, 0.10% lower from the New York close, amid speculations that talks between the US and Russian diplomats would ease some concerns on the supply outlook of the commodity. This morning, Oil traded at a high of $101.73 and a low of $101.34. On Friday, Oil traded 0.23% lower in the New York session, and closed at $101.67. However, a rise in the US consumer spending and a 3.1% climb in China’s apparent oil demand kept the commodity’s losses in check.
It has its first support at $101.21 and first resistance at $102.11.
Economic Snapshot
UK mortgage approvals declined more than anticipated in February
The number of mortgage approvals for house purchases in the UK fell to a level of 70.3K in February, more than market expectation of a decline to 75.3K approvals and compared to revised 76.8K mortgage approvals reported in the previous month.
UK net consumer credit advanced less than expected in February
Net consumer credit in the UK rose by £0.55 billion in February, following a revised rise of £0.62 billion recorded in the prior month. Markets were expecting net consumer credit to rise by £0.70 billion in February.
Euro-zone consumer price index rose less than market expectation
On an annual basis, preliminary consumer price index in the Euro-zone rose 0.5% in March, compared to 0.7% rise in the previous month. Markets were expecting the consumer price index to rise 0.6% in March.
German retail sales rose in February
Federal Statistical Office of Germany reported that on an annual basis, retail sales in Germany rose 2.0% in February, compared to a 0.9% rise recorded in the previous month. Markets were expecting retail sales to rise 0.8% in February.
France GDP rose in line with the preliminary estimate in Q4 2013
On a quarterly basis, final gross domestic product (GDP) in France advanced 0.3% in the fourth quarter of 2013, in line with the preliminary estimate, compared to a flat change reported in the previous quarter.
Italy consumer price index climbed in line with market estimate
On an annual basis, the preliminary consumer price index in Italy rose 0.4% in March, in line with market expectations, compared to a 0.5% rise recorded in the previous month.
Swiss KOF leading indicator declined unexpectedly in March
The KOF leading indicator in Switzerland fell to a level of 1.99 in March, compared to a reading of 2.03 reported in the previous month. Market had expected the indicator to remain steady in March.
Japan construction orders climbed at a slower pace in February
On an annual basis, construction orders in Japan increased 12.3% in February, compared to a 15.2% rise recorded in the previous month. Additionally, on an annual basis, housing starts in Japan rose 1.0% in February, following an increase of 12.3% in the preceding month. Markets were expecting housing starts to increase 4.9% in February.
Australia HIA new home sales rose at a faster pace in February
On a monthly basis, the HIA new home sales in Australia climbed 4.6% in February, compared to a 0.5% rise in the previous month.
Private sector credit in Australia advanced at a faster pace in February
On an annual basis, private sector credit in Australia climbed 4.3% in February, compared to a 4.1% rise recorded in the previous month.
Happy pips.
