Forex Market Update
This morning, the greenback is trading mixed against most of the major currencies, ahead of the much awaited US non-farm payrolls and unemployment rate data.
The GBP is trading lower against the USD, after Halifax reported that house prices in the UK economy registered their biggest fall in nearly two years in March. Yesterday, a BoE policymaker, Ian McCafferty projected the interest rates in the UK to remain at current record-low level of 0.5% for some more time and opined that any future increase in the same would be gradual. He further noted that the UK housing market is still not functioning properly.
Yesterday, in the New York session, the USD traded mixed against key currencies. Data released yesterday showed that the ISM non-manufacturing PMI in the US rose less than market expectations in March while trade deficit in the nation unexpectedly widened in February.
The EUR declined against the USD after the ECB President, Mario Draghi, following the central bank’s decision to keep its interest rate unchanged at 0.25%, hinted that policymakers are open to further easing and that they would consider all available financial instruments, including QE, to fight deflation threats in the region.
Separately, OECD, citing heightened deflation risks in the Euro region, suggested the ECB to keep interest rates at a near zero level over the medium term and opt for “additional nonconventional measures.”
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3707 against the USD, 0.08% lower from the New York close. In economic news, factory orders in Germany rose 0.6% (MoM) in February, more than economists’ forecast. During the session, the pair traded at a high of 1.3725 and a low of 1.3700. Yesterday, the EUR traded 0.30% lower against the USD in the New York session, and closed at 1.3718, after the ECB President Draghi hinted that policymakers discussed QE measures and assured to use other unconventional tools should the region edge closer to deflationary decline.
The pair is expected to find its first support at 1.3666 and first resistance at 1.3778.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6585 against the USD, 0.07% lower from the New York close. Earlier today, Halifax reported that house prices in the UK fell 1.1% in March, the biggest fall recorded since April 2012. During the session, the pair traded at a high of 1.6601 and a low of 1.6585. Yesterday, the British Pound traded tad higher versus the Dollar in the New York session, and closed at 1.6597.
The pair is expected to find its first support at 1.6566 and first resistance at 1.6608.
USD JPY
The USD is trading at 103.89 against the JPY at 9:40 GMT this morning, marginally lower from the New York close. Early morning, Japan’s Finance Minister, Taro Aso indicated that the BoJ’s aggressive monetary policy should be appreciated as it boosted consumer inflation and economic growth in the nation. During the session, the pair traded at a high of 103.97 and a low of 103.85. In the New York session yesterday, the USD traded marginally lower against the JPY, and closed at 103.93.
The pair is expected to find its first support at 103.75 and first resistance at 104.08.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8927 against the Swiss Franc, 0.17% higher from the New York close. During the session, the pair traded at a high of 0.8936 and a low of 0.8910. In the New York session yesterday, the USD traded 0.50% higher against the CHF, and closed at 0.8912.
The pair is expected to find its first support at 0.8868 and first resistance at 0.8961.
USD CAD
At 9:40 GMT, the USD is trading at 1.1021 against the CAD, 0.15% lower from the New York close. Traders keenly await Canada’s and the US’s employment data for further cues in the currency pair. During the session, the pair traded at a high of 1.1043 and a low of 1.1017. Yesterday, the USD traded 0.06% higher against the CAD in the New York session, and closed at 1.1038. The demand for Loonie strengthened during the day after Statistics Canada reported that Canada’s merchandise trade balance swung to a surplus in February on the back of the biggest one-month gain in exports in more than two years.
The pair is expected to find its first support at 1.1000 and first resistance at 1.1044.
AUD USD
The AUD is trading at 0.9246 against the USD, at 9:40 GMT this morning, 0.14% higher from the New York close. During the session, the pair traded at a high of 0.9250 and a low of 0.9232. AUD traded slightly higher against the USD in the New York session, and closed at 0.9233, rebounding from its former losses, triggered by the latest batch of soft economic releases from Australia and China.
The pair is expected to find its first support at 0.9223 and first resistance at 0.9259.
Gold
At 9:40 GMT, Gold is trading at $1292.88 per ounce, 0.46% higher from the New York close, amid bargain hunting. Separately, a leading broking house, citing a future rise in Chinese demand for gold, raised its price target on the yellow metal to $1,250 an ounce. This morning, Gold traded at a high of $1294.41 and a low of $1284.27 per ounce. In the New York session yesterday, the yellow metal traded 0.13% higher, and closed at $1286.90.
Gold has its first support at $1284.98 and first resistance at $1297.59.
Silver
Silver is trading at $19.98 per ounce, 0.66% 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 $19.79. Silver traded marginally lower against the USD in the New York session, and closed at $19.85.
Silver has its first support at $19.76 and first resistance at $20.10.
Crude Oil
At 9:40 GMT, Oil is trading at $100.99 per barrel, 0.60% higher from the New York close, as concerns emerged regarding the outcome of talks between the Libyan government and rebels for reopening oil ports in the nation. This morning, Oil traded at a high of $101.13 and a low of $100.28. Yesterday, Oil traded 1.08% higher in the New York session, and closed at $100.34, as escalating tensions between Ukraine and Russia over gas price hike and a decline in oil exports from southern Iraq in March supported the prices of crude oil.
It has its first support at $99.67 and first resistance at $101.72.
Economic Snapshot
UK Halifax house prices declined unexpectedly in March
On a monthly basis, Halifax house prices in UK dropped 1.1% in March, compared to a revised increase of 2.5% in the previous month. Market had expected the house prices to rise 0.6% in March.
UK new car registrations surged in March
On an annual basis, new car registrations in UK surged by 17.7% in March, compared to a 3.0% increase recorded in the previous month.
German factory orders rose less than expected in February
On a non-seasonally adjusted annual basis, factory orders in Germany rose 6.1% in February, compared to a revised rise of 7.1% recorded in the previous month. Markets were expecting factory orders to rise 6.8% in February.
Happy pips.
