Forex Market Update
This morning, the greenback is trading mixed against most of the major currencies. Early morning, Fed’s Narayana Kocherlakota projected the US inflation and employment rate to remain below the US Fed’s goal for several years and asked the Fed for some additional measures to correct the same.
The EUR rose against the USD, despite data confirming that Euro-zone’s annual consumer inflation rate fell to a four-year low level of 0.5% in March while current account surplus in the region narrowed from a record high to €21.9 billion in February.
The GBP is trading higher against the USD after Britain’s unemployment rate fell below the BoE’s threshold to a five-year low of 6.9% in the three months to February and after the number of people availing jobless benefits declined to its lowest level since November 2008.
The NZD lost ground after New Zealand’s consumer prices slowed more-than-forecast in the first quarter.
In Yesterday’s New York session, the greenback traded mixed against the key currencies. However, later during the day, the USD advanced after consumer inflation in the US rose slightly more than expected in March, adding to the signs of recovery in the nation. Separately, the Fed Chief, Janet Yellen indicated that policymakers were mulling stricter rules on banks' capital needs while the Boston Fed President, Eric Rosengren urged the US central bank to provide more explicit guidance on its interest rates.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3842 against the USD, 0.21% higher from the New York close, even as a report confirmed that Euro-zone’s annual consumer inflation rate fell to 0.5% (YoY) in March, its lowest level since November 2009. Separately, the Euro-zone's current-account surplus narrowed slightly to a seasonally adjusted €21.9 billion in February, from a record high surplus of €25.4 billion in January. During the session, the pair traded at a high of 1.3852 and a low of 1.3810. Yesterday, the EUR traded 0.08% higher against the USD in the New York session, and closed at 1.3813.
The pair is expected to find its first support at 1.3805 and first resistance at 1.3866.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6796 against the USD, 0.40% higher from the New York close, after the UK ILO unemployment rate unexpectedly fell to 6.9% in February, the lowest level in five years and after jobless claims in the nation for March reported a 17th consecutive decline that was larger than forecast. During the session, the pair traded at a high of 1.6819 and a low of 1.6722. Yesterday, the British Pound traded tad lower versus the Dollar in the New York session, and closed at 1.6729.
The pair is expected to find its first support at 1.6732 and first resistance at 1.6839.
USD JPY
The USD is trading at 102.33 against the JPY at 9:40 GMT this morning, 0.46% higher from the New York close. Early morning, the BoJ Governor, Kuroda affirmed his positive view on the Japanese economy and projected growth to pick up around mid-year. In economic releases, Japan's industrial production declined as estimated in February. During the session, the pair traded at a high of 102.38 and a low of 101.85. In the New York session yesterday, the USD traded marginally higher against the JPY, and closed at 101.86.
The pair is expected to find its first support at 101.76 and first resistance at 102.64.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8789 against the Swiss Franc, 0.16% lower from the New York close. However, the Swiss Franc pared some of its initial gains after the ZEW survey on the Swiss economic expectations slipped for a fourth straight month in April. During the session, the pair traded at a high of 0.8810 and a low of 0.8786. In the New York session yesterday, the USD traded 0.07% lower against the CHF, and closed at 0.8803.
The pair is expected to find its first support at 0.8773 and first resistance at 0.8813.
USD CAD
At 9:40 GMT, the USD is trading at 1.1002 against the CAD, 0.17% higher from the New York close, ahead of BoC’s interest rate decision. During the session, the pair traded at a high of 1.1004 and a low of 1.0980. Yesterday, the USD traded 0.17% lower against the CAD in the New York session, and closed at 1.0983. In economic news, Canada’s manufacturing shipments in February rose to the highest sales level recorded since July 2008, while existing home sales in Canada jumped in March.
The pair is expected to find its first support at 1.0977 and first resistance at 1.1021.
AUD USD
The AUD is trading at 0.9344 against the USD, at 9:40 GMT this morning, 0.16% lower from the New York close. Data released overnight showed that the Westpac leading index in Australia was basically unchanged in March at a reading of 98.38. Meanwhile, data from China showed that annual GDP rose at the slowest pace in six quarters in Q1. During the session, the pair traded at a high of 0.9382 and a low of 0.9339.AUD traded slightly lower against the USD in the New York session, and closed at 0.9359.
The pair is expected to find its first support at 0.9318 and first resistance at 0.9384.
Gold
At 9:40 GMT, Gold is trading at $1298.60 per ounce, 0.34% lower from the New York close, amid profit booking. This morning, Gold traded at a high of $1304.70 and a low of $1293.50 per ounce. In the New York session yesterday, the yellow metal traded 0.66% higher, and closed at $1303.00, as escalating tensions in Ukraine bolstered its safe-haven appeal. However, the gains in the metal were capped after the World Gold Council indicated that Chinese firms could have locked up as much as 1,000 tons of gold in financing deals.
Gold has its first support at $1284.57 and first resistance at $1312.47.
Silver
Silver is trading at $19.51 per ounce, 0.26% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.63 and a low of $19.33. Silver traded 0.80% higher against the USD in the New York session, and closed at $19.56.
Silver has its first support at $19.17 and first resistance at $19.90.
Crude Oil
At 9:40 GMT, Oil is trading at $104.62 per barrel, 0.80% higher from the New York close. This morning, Oil traded at a high of $104.72 and a low of $103.68. Yesterday, Oil traded 0.75% higher in the New York session, and closed at $103.84, as escalating tensions in Ukraine weighed on the supply-outlook of the commodity. However, easing concerns on Libya’s oil exports and a more-than-expected rise in the API’s weekly crude oil’s data limited the gains in the commodity.
It has its first support at $103.51 and first resistance at $105.23.
Economic Snapshot
UK unemployment rate fell more than expected in February
On a three months basis, the ILO unemployment rate in UK declined to 6.9% for December 2013 to February 2014, more than market expectation of a rate of 7.1% and compared to a revised rate of 7.1% recorded for September to November 2013.
UK claimant count rate declined in March
National Statistics reported that the claimant count rate in UK fell to 3.4% in March, in line with market expectations and compared to a rate of 3.5% recorded in the previous month.
Euro-zone consumer price index rose at a slower pace in March
On an annual basis, the final consumer price index in the Euro zone rose 0.5% in March, compared to a reading of 0.7% in the previous month.
Swiss ZEW economic expectations index dropped unexpectedly in April
The economic expectations index in Switzerland dropped to a level of 7.0 in April, compared to a level of 19.0 reported in the previous month. Market had expected the index to rise to 23.0 in April.
Japan industrial production rose than the preliminary estimate in February
On an annual basis, the final industrial production in Japan rose 7.0% in February, more compared to the preliminary estimate of a 6.9% rise, but less compared to a 10.3% increase recorded in the previous month.
Japan’s economy recovering moderately, indicated BoJ’s Kuroda
The Bank of Japan (BoJ) Governor, Haruhiko Kuroda, opined that the central bank’s accommodative monetary policy stance has enabled the Japanese economic recovery to continue at a moderate pace.
Australia Westpac leading index remained flat in March
On a monthly basis, the Westpac leading index in Australia remained steady (0.0%) in March, compared to a 0.1% decrease recorded in the previous month.
China industrial production rose less than anticipated in March
On an annual basis, industrial production in China rose 8.8% in March, compared to an 8.6% rise recorded in the previous month. Markets were expecting industrial production to rise 9.0% in March. Meanwhile, on an annual basis, retail sales in China rose 12.2% in March, compared to an 11.8% increase recorded in the previous month.
Chinese economy expanded more than market estimates in Q12014
On an annual basis, GDP in China rose 7.4% in Q1 2014, more than market expectation of a rise of 7.3%,but less compared to a rise of 7.7% recorded in the previous quarter.
Happy pips.
