Forex Market Update
This morning, the greenback is trading mostly lower against most of the major currencies, ahead of the US weekly jobless claims data and a survey on the Philadelphia manufacturing activity for March.
Earlier today, in Japan, the BoJ Governor, Kuroda affirmed that the central bank would maintain its QE measure until necessary to achieve its 2% inflation target while Japan’s Vice Economy Minister, Yasutoshi Nishimura opined that Japan remains on a firm footing even after a sales-tax hike. Additionally, the BoJ, in its quarterly survey, maintained its economic assessment on 8 out of 9 regions and raised its view on 1 region.
Yesterday, in the New York session the greenback traded mostly higher against the key currencies, benefitted by Fed’s Richard Fisher supportive comments on the tapering of the Fed’s stimulus measure.
Separately, Fed’s Beige Book revealed that economic activity in most of the regions has recovered from a weather-related slowdown. Meanwhile, the USD came under pressure after the Fed Chief, Janet Yellen hinted the US interest rates to remain low until signs of firmer economic recovery.
The CAD lost ground after the BoC kept its interest rate unchanged at 1.0% and slashed its Q1 2014 growth-projections on the Canadian economy. Furthermore, the BoC Governor reiterated a neutral stance on interest rate and indicated that “rate cuts cannot be taken off the table at this stage.”
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3863 against the USD, 0.34% higher from the New York close. Data from Germany, Euro-zone’s largest economy, showed that producer prices in the nation fell for an eighth consecutive month and at a more than expected pace in March. During the session, the pair traded at a high of 1.3865 and a low of 1.3817. Yesterday, the EUR traded 0.12% lower against the USD in the New York session, and closed at 1.3816, following the release of soft Euro-zone’s consumer inflation data for March.
The pair is expected to find its first support at 1.3822 and first resistance at 1.3885.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6836 against the USD, 0.23% higher from the New York close. During the session, the pair traded at a high of 1.6844 and a low of 1.6798. Yesterday, the British Pound traded tad lower versus the Dollar in the New York session, and closed at 1.6797, paring its initial gains on the back of upbeat UK employment data.
The pair is expected to find its first support at 1.6797 and first resistance at 1.6860.
USD JPY
The USD is trading at 102.06 against the JPY at 9:40 GMT this morning, 0.18% lower from the New York close. Earlier today, the BoJ raised its view of one of the country's nine regional economies, an indication that the central bank remains confident on the recovery of the economy. Meanwhile, on the economic front, consumer confidence in Japan fell to the lowest level since August 2011 in March. During the session, the pair traded at a high of 102.27 and a low of 101.95. In the New York session yesterday, the USD traded marginally higher against the JPY, and closed at 102.24.
The pair is expected to find its first support at 101.82 and first resistance at 102.33.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8785 against the Swiss Franc, 0.37% lower from the New York close. During the session, the pair traded at a high of 0.8820 and a low of 0.8789. In the New York session yesterday, the USD traded 0.24% higher against the CHF, and closed at 0.8818.
The pair is expected to find its first support at 0.8767 and first resistance at 0.8816.
USD CAD
At 9:40 GMT, the USD is trading at 1.1003 against the CAD, 0.10% lower from the New York close. During the session, the pair traded at a high of 1.1019 and a low of 1.1000. Yesterday, the USD traded 0.33% higher against the CAD in the New York session, and closed at 1.1014. The CAD declined after the BoC kept its interest rate unchanged at 1.0% and reiterated its neutral stance on the future of interest rate.
The pair is expected to find its first support at 1.0962 and first resistance at 1.1039.
AUD USD
The AUD is trading at 0.9361 against the USD, at 9:40 GMT this morning, 0.10% lower from the New York close. On the economic front, data from Australia showed that the NAB business confidence declined in the first quarter while data from China revealed that the year-to-date FDI rose 5.5% on year to $31.56 billion. During the session, the pair traded at a high of 0.9392 and a low of 0.9358. AUD traded tad higher against the USD in the New York session, and closed at 0.9370.
The pair is expected to find its first support at 0.9337 and first resistance at 0.9389.
Gold
At 9:40 GMT, Gold is trading at $1299.70 per ounce, 0.21% lower from the New York close, after reports showed that holdings in SPDR Gold Trust witnessed its biggest outflow since December 23 on Wednesday. This morning, Gold traded at a high of $1304.30 and a low of $1296.60 per ounce. In the New York session yesterday, the yellow metal traded 0.12% lower, and closed at $1302.40, hurt by a stronger US Dollar. However, lingering turmoil in Ukraine kept the commodity’s losses in check.
Gold has its first support at $1295.17 and first resistance at $1305.67.
Silver
Silver is trading at $19.61 per ounce, 0.20% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.66 and a low of $19.49. Silver traded slightly higher against the USD in the New York session, and closed at $19.65.
Silver has its first support at $19.45 and first resistance at $19.78.
Crude Oil
At 9:40 GMT, Oil is trading at $103.86 per barrel, 0.10% higher from the New York close. This morning, Oil traded at a high of $104.28 and a low of $103.63. Yesterday, Oil traded 0.86% lower in the New York session, and closed at $103.79, after the EIA reported a weekly 10 million barrels jump in the US stockpiles, nearly four times more than what market had expected. However, lingering tensions over Ukraine continued to support the prices of oil.
It has its first support at $102.99 and first resistance at $104.86.
Economic Snapshot
German producer price index fell more than anticipated in March
On an annual basis, the producer price index in Germany fell 0.9% in March, compared to a similar decline recorded in the previous month. Market had expected the producer price index to decline 0.7% in March.
Kuroda reiterated to maintain the BoJ’s policy stance
The Bank of Japan (BoJ) Governor, Haruhiko Kuroda, reinforced that the central bank would take appropriate steps to adjust its monetary policy when needed to support the nation’s economic recovery. Kuroda further stated that the Japanese economy was recovering moderately and making a steady progress towards attaining its 2% inflation target.
Japan consumer confidence index declined more than expected in March
The consumer confidence index in Japan fell to a level of 37.5 in March, more than market expectation of a level of 37.7 and compared to a revised reading of 38.5 reported in the previous month.
Japan nationwide department store sales rose sharply in March
On an annual basis, nationwide department store sales in Japan rose 25.4% in March, following a rise of 3.0% recorded in the preceding month.
Australia RBA foreign exchange transaction rose in March
The RBA foreign exchange transaction rose to A$736.0 million in March, from a level of A$369.0 million in the previous month.
Australia’s new motor vehicle sales declined further in March
On a seasonally adjusted monthly basis, new motor vehicle sales in Australia fell 0.3% in March, following a revised fall of 0.1% recorded in the preceding month.
Australia NAB business confidence dropped in Q1 2014
National Australia Bank’s (NAB) quarterly survey reported that the business confidence index in Australia declined to a level of 6.0 in Q1 2014, compared to a level of 8.0 reported in the previous quarter.
China’s foreign direct investment declined in March
On an annual basis, actual foreign direct investment (FDI) in China fell 1.5% in March, compared to market expectations for a rise of 2.0% in March.
Happy pips.
