Forex Market Update
This morning, the greenback is trading higher against most of the major currencies, ahead of the release of the US retail sales data, later today.
The EUR gave up ground following the ECB Chief, Mario Draghi’s Saturday’s comments that a further rise in the EUR exchange rate would compel the ECB to opt for additional stimulus measures. Meanwhile, the IMF rewarned the ECB against low level of inflation in the Euro-zone economy and urged the central bank to undertake more resolute actions to deal with it.
In Switzerland, the SNB President, Thomas Jordan opined that the central bank’s cap on the Swiss Franc is “very, very important” for safeguarding the nation’s monetary conditions and to prevent the economy from falling back into deflation, as the Franc at current level still remains highly valued.
In Friday’s New York session, the greenback traded mostly lower against the key currencies. However, it received some support after producer prices in the US recorded their strongest increase in 9-month in March and after the US Reuters/ Michigan consumer confidence index rose to the highest level since July 2013 in April.
The JPY traded lower against the USD. The BoJ Governor, Haruhiko Kuroda hinted that the central bank stands prepared to act if it finds threats to its price target as the economy has reached only half-way in achieving the BoJ’s 2% inflation goal.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3827 against the USD, 0.43% lower from the New York close, spooked by the ECB President, Mario Draghi’s Saturday’s comments that a further appreciation in the EUR could call for additional stimulus measure. However, upbeat Euro-zone’s industrial production limited the EUR’s losses. During the session, the pair traded at a high of 1.3864 and a low of 1.3824. On Friday, the EUR traded 0.09% higher against the USD in the New York session, and closed at 1.3887. ECB’s Jens Weidmann opined that he did not see a deflation spiral in the Euro-zone economy.
The pair is expected to find its first support at 1.3794 and first resistance at 1.3881.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6719 against the USD, 0.16% lower from the New York close. Earlier today, the Rightmove house price index in the UK rose to a fresh record high for the second straight month in April. During the session, the pair traded at a high of 1.6745 and a low of 1.6719. On Friday, the British Pound traded marginally higher versus the Dollar in the New York session, and closed at 1.6745.
The pair is expected to find its first support at 1.6697 and first resistance at 1.6757.
USD JPY
The USD is trading at 101.69 against the JPY at 9:40 GMT this morning, 0.10% higher from the New York close. During the session, the pair traded at a high of 101.77 and a low of 101.48. In the New York session on Friday, the USD traded tad higher against the JPY, and closed at 101.58. The BoJ Chief, Haruhiko Kuroda stated that Japan has only reached the half way in its path to the central bank's 2% price target and that the BoJ is ready to act if risk materializes.
The pair is expected to find its first support at 101.44 and first resistance at 101.85.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8791 against the Swiss Franc, 0.43% higher from the New York close. During the session, the pair traded at a high of 0.8798 and a low of 0.8769. In Friday’s New York session, the USD traded 0.17% lower against the CHF, and closed at 0.8753. Following the G20 meeting, the SNB President, Thomas Jordan opined that the central bank’s cap on the Swiss Franc remains vital to contain the domestic currency's strength, which, according to him, could pose a threat to the nation’s price stability.
The pair is expected to find its first support at 0.8756 and first resistance at 0.8812.
USD CAD
At 9:40 GMT, the USD is trading at 1.0980 against the CAD, 0.16% higher from the New York close. During the session, the pair traded at a high of 1.0994 and a low of 1.0973. On Friday, the USD traded 0.07% lower against the CAD in the New York session, and closed at 1.0962. The BoC Governor, Stephen Poloz indicated that policymakers in the nation are eyeing the risk of deflation in several advanced economies despite of encouraging improvements in the outlook of the Canadian economy.
The pair is expected to find its first support at 1.0933 and first resistance at 1.1011.
AUD USD
The AUD is trading at 0.9400 against the USD, at 9:40 GMT this morning, tad higher from the New York close, ahead of the RBA monetary policy minutes scheduled tomorrow. During the session, the pair traded at a high of 0.9412 and a low of 0.9381. AUD traded 0.09% higher against the USD in Friday’s New York session, and closed at 0.9399.
The pair is expected to find its first support at 0.9374 and first resistance at 0.9427.
Gold
At 9:40 GMT, Gold is trading at $1325.40 per ounce, 0.49% higher from the New York close, as traders favored the safe-haven appeal of the metal amid escalating tensions between Ukraine and Russia. This morning, Gold traded at a high of $1330.80 and a low of $1319.40 per ounce. In the New York session on Friday, the yellow metal traded 0.08% higher, and closed at $1319.00, buoyed by a weaker US Dollar.
Gold has its first support at $1317.13 and first resistance at $1332.23.
Silver
Silver is trading at $19.88 per ounce, 0.33% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $20.14 and a low of $19.84. Silver traded 0.10% lower against the USD in Friday’s New York session, and closed at $19.95.
Silver has its first support at $19.76 and first resistance at $20.07.
Crude Oil
At 9:40 GMT, Oil is trading at $103.81 per barrel, 0.10% higher from the New York close, amid speculation that escalating tensions between Russia and Ukraine could affect oil shipments from the region. This morning, Oil traded at a high of $104.55 and a low of $103.41. On Friday, Oil traded 0.23% higher in the New York session, and closed at $103.74, as strong economic data from the US bolstered the demand outlook of the commodity. However, the gains were capped after the IEA slashed its forecast on global oil demand for 2014.
It has its first support at $103.08 and first resistance at $104.54.
Economic Snapshot
Euro zone industrial production rose more than expected in February
On an annual basis, working day adjusted industrial production in the Euro-zone climbed 1.7% in February, compared to a revised 1.6% increase recorded in the previous month. Markets were expecting industrial production to rise 1.5% in February.
Italy final consumer price index rose in line with the preliminary estimate in March
On a monthly basis, the final consumer price index in Italy rose 0.1% in March, in line with the preliminary estimate, compared to a 0.1% fall in the previous month. Meanwhile, on a monthly basis, Italy’s EU normalised final consumer price index rose 2.2% in March, compared to a similar revised rise in the previous month.
Australia credit card balances rose in February
The Reserve Bank of Australia (RBA) reported that the RBA credit card balances in Australia increased to A$ 50.2 billion in February, from a level of A$ 49.1 billion in the previous month. Meanwhile, RBA credit card purchases remained steady at A$ 21.4 billion in February, compared to the previous month.
Happy pips.
