Forex Market Update
This morning, the greenback is trading lower against most of the major currencies.
The GBP is trading higher against its US counterpart, ahead of the NIESR UK GDP estimates and following upbeat UK manufacturing and industrial production data for February. Earlier today, a survey from the British Chambers of Commerce indicated that recovery in the nation is “not yet secure” and continues to be “short term” in nature. The survey further revealed that UK service sector's export sales and orders came in at record levels and manufacturing sector was performing strongly as well.
Demand for the JPY rose after the BoJ, in its two-day policy meeting, kept its policy stance intact and suggested that the Japanese economy could withstand a sales-tax hike even without an immediate stimulus measure.
Yesterday, in the New York session, the greenback traded lower against the key currencies. Meanwhile, the St. Louis Fed President, James Bullard, highlighted the positive impact of the Fed’s ultra-easy policy measures on the recovery of the US economy and opined that the recent rebound in the US hiring confirmed that the nation is back on its track.
The EUR advanced against the USD after ECB’s Yves Mersch sought to downplay an urgent need for QE measures to combat deflation threats in the economy.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3768 against the USD, 0.18% higher from the New York close. During the session, the pair traded at a high of 1.3775 and a low of 1.3742. Yesterday, the EUR traded 0.10% higher against the USD in the New York session, and closed at 1.3743, after an ECB policymaker, Yves Mersch played down concerns on deflation risks in the Euro-zone economy and opined that he did not see imminent need for QE measures by the ECB in the region.
The pair is expected to find its first support at 1.3730 and first resistance at 1.3790.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6714 against the USD, 0.64% higher from the New York close, after data showed that manufacturing production in the UK posted its biggest monthly increase since September 2013 and after UK’s industrial production rose more-than-expected in February, recovering from a flat reading in January. During the session, the pair traded at a high of 1.6717 and a low of 1.6609. Yesterday, the British Pound traded 0.11% higher versus the Dollar in the New York session, and closed at 1.6608.
The pair is expected to find its first support at 1.6616 and first resistance at 1.6764.
USD JPY
The USD is trading at 102.56 against the JPY at 9:40 GMT this morning, 0.50% lower from the New York close. The JPY advanced after the BoJ maintained its monetary policy stance at its two-day policy meeting in April. Furthermore, the BoJ chief, Kuroda expressed confidence in the recovery of the economy and opined that the economy could withstand a sales tax hike without the help of immediate further monetary measures. During the session, the pair traded at a high of 103.14 and a low of 102.58. In the New York session yesterday, the USD traded 0.13% lower against the JPY, and closed at 103.08.
The pair is expected to find its first support at 102.28 and first resistance at 103.08.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8860 against the Swiss Franc, 0.20% lower from the New York close. Demand for the CHF rose after data showed that the Swiss real retail sales rose more-than-expected 1.0% (YoY) in February, rebounding from a 0.1% drop in the preceding month. Meanwhile, the Swiss unemployment rate held steady at seasonally adjusted 3.2% in March, the highest since April 2010. During the session, the pair traded at a high of 0.8881 and a low of 0.8859. In the New York session yesterday, the USD traded 0.17% lower against the CHF, and closed at 0.8878.
The pair is expected to find its first support at 0.8836 and first resistance at 0.8897.
USD CAD
At 9:40 GMT, the USD is trading at 1.0934 against the CAD, 0.36% lower from the New York close. Traders await Canada’s housing starts and building permits data for further cues in the Canadian Dollar. During the session, the pair traded at a high of 1.0979 and a low of 1.0931. Yesterday, the USD traded 0.27% lower against the CAD in the New York session, and closed at 1.0973. The Loonie gained ground after a quarterly survey from the BoC highlighted a brighter outlook for Canada’s corporate sector this year.
The pair is expected to find its first support at 1.0901 and first resistance at 1.0989.
AUD USD
The AUD is trading at 0.9336 against the USD, at 9:40 GMT this morning, 0.73% higher from the New York close even as the National Australia Bank reported that its index on business confidence in Australia slipped to the lowest level since September’s Federal election while its business conditions index rose slightly in March. During the session, the pair traded at a high of 0.9343 and a low of 0.9267. AUD traded 0.12% higher against the USD in the New York session, and closed at 0.9268.
The pair is expected to find its first support at 0.9278 and first resistance at 0.9368.
Gold
At 9:40 GMT, Gold is trading at $1312.67 per ounce, 1.18% higher from the New York close, on strong physical demand. This morning, Gold traded at a high of $1314.53 and a low of $1297.00 per ounce. In the New York session yesterday, the yellow metal traded 0.13% lower, and closed at $1297.31 in a subdued trading session. Negative sentiment was also fuelled after a leading broking house indicated that gold remained its least preferred commodity among other metals as it expected a further fall in the prices of the yellow metal this year.
Gold has its first support at $1300.76 and first resistance at $1319.55.
Silver
Silver is trading at $20.18 per ounce, 1.51% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $20.18 and a low of $19.87. Silver traded 0.16% higher against the USD in the New York session, and closed at $19.88. However, a broad decline in the prices of industrial metals capped the gains in the white metal.
Silver has its first support at $19.92 and first resistance at $20.31.
Crude Oil
At 9:40 GMT, Oil is trading at $101.29 per barrel, 0.60% higher from the New York close, on renewed concerns over Ukraine. This morning, Oil traded at a high of $101.44 and a low of $100.69. Yesterday, Oil traded 0.32% higher in the New York session, and closed at $100.69. However, the gains in the commodity were limited after reports indicated that rebels in Libya surrendered control of two oil ports to the government yesterday.
It has its first support at $100.33 and first resistance at $101.85.
Economic Snapshot
UK industrial production rose above expectation in February
On an annual basis, industrial production in the UK rose 2.7% in February, compared to a revised 2.8% increase recorded in the previous month. Markets were expecting industrial production to increase 2.2% in February. Meanwhile, the UK manufacturing production rose 3.8% on an annual basis in February, compared to a revised 3.2% rise recorded in the preceding month.
France trade deficit narrowed more than forecast in February
France posted a trade deficit of €3.4 billion in February, less than market forecasts and compared to a revised deficit of €5.7 billion recorded in the previous month.
Unemployment rate in Switzerland declined in March
On a non-seasonally adjusted basis, the unemployment rate in Switzerland dropped to 3.3% in March, in line with market expectations and compared to a rate of 3.5% reported in the previous month.
Switzerland retail sales climbed in February
On an annual basis, real retail sales in Switzerland rose 1.0% in February, following a revised fall of 0.1% recorded in the preceding month.
BoJ kept its monetary policy unchanged
The Bank of Japan (BoJ) left its benchmark interest rate unchanged at 0.10% and has maintained its asset purchase program. The central bank has also kept its inflation outlook unchanged while reiterating that the nation's economy continues to recover at a moderate pace and that “inflation expectations appear to be rising on the whole.”
Japan Eco Watchers Survey for current situation rose in March
The Eco Watchers Survey for the current situation in Japan rose to a level of 57.9 in March, compared to a reading of 53.0 reported in the previous month. Meanwhile, the Eco Watchers Survey for the future outlook in Japan dropped to a level of 34.7 in March, compared to a reading of 40.0 reported in the previous month.
Japan economic recovery on track, insisted BoJ’s Kuroda
The Bank of Japan Governor, Haruhiko Kuroda, opined that the moderate Japanese economic recovery is set to continue, driven by robust consumer demand, despite the 3% increase in sales tax which came into effect earlier this month.
Australia NAB business confidence fell in March
The National Australia Bank (NAB) business confidence index in Australia dropped to a level of 4.0 in March, compared to a reading of 7.0 recorded in the previous month. Meanwhile, business conditions index in Australia rose to a level of 1.0 in March, compared to a flat reading in the previous month.
Happy pips.
