Forex Market Update
This morning, the greenback is trading mostly lower against most of the major currencies.
The EUR is trading higher against the USD, ahead of the Euro-zone’s consumer confidence data. Earlier today, data showed that construction output growth in the Euro-zone eased sharply in February. Yesterday, the IMF raised its growth-forecast on the Portuguese economy for 2014 but also cautioned that the nation still faced challenges to achieve sustainable growth.
In an interview this morning, ECB’s Benoit Coeure stated that the central bank still has room to cut rates further and added that the appreciation in the EUR could be held responsible for low inflation in the region.
In Japan, an ex-BoJ policymaker, Miyako Suda hinted that the central bank would hold itself from adding extra stimulus measures for as long as possible but when it decides to act, it would undertake “extraordinary” steps.
Yesterday, in the New York session, the greenback traded mostly higher against the key currencies, after the US CB leading indicator rose for the third consecutive month in March.
In a noteworthy event, the CEBR upgraded its growth forecast on the UK economy for 2014 and 2015. Furthermore, it also projected inflation in the Britain economy to stay below the 2% target for the remainder of the year and unemployment rate to continue to fall.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3804 against the USD, 0.07% higher from the New York close. In economic news, growth in Euro-zone’s construction output eased in February, hurt by a decline in building construction. Looking forward, traders await the Euro-zone’s consumer confidence data for further cues in the EUR. During the session, the pair traded at a high of 1.3812 and a low of 1.3789. Yesterday, the EUR traded 0.17% lower against the USD in the New York session, and closed at 1.3795.
The pair is expected to find its first support at 1.3783 and first resistance at 1.3826.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6824 against the USD, 0.18% higher from the New York close. During the session, the pair traded at a high of 1.6827 and a low of 1.6788. Yesterday, the British Pound traded 0.07% lower versus the Dollar in the New York session, and closed at 1.6793. Late Monday, the Centre of Economics and Business Research (CEBR) raised its growth forecast on the UK economy for 2014 and 2015 on the back of wage growth and lower inflation in Britain.
The pair is expected to find its first support at 1.6798 and first resistance at 1.6839.
USD JPY
The USD is trading at 102.50 against the JPY at 9:40 GMT this morning, 0.12% lower from the New York close. Earlier today, data from Japan showed that coincident index registered a more-than-expected fall in February while leading economic index fell less than preliminary estimates but remained at a six-month low. During the session, the pair traded at a high of 102.74 and a low of 102.46. In the New York session yesterday, the USD traded marginally higher against the JPY, and closed at 102.63.
The pair is expected to find its first support at 102.36 and first resistance at 102.69.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8843 against the Swiss Franc, 0.08% lower from the New York close. On the economic front, Switzerland's M3 money supply growth accelerated for the third consecutive month in March. During the session, the pair traded at a high of 0.8858 and a low of0.8841.In the New York session yesterday, the USD traded 0.27% higher against the CHF, and closed at 0.8850.
The pair is expected to find its first support at 0.8823 and first resistance at 0.8861.
USD CAD
At 9:40 GMT, the USD is trading at 1.1019 against the CAD, 0.06% higher from the New York close. Market participants are expected to keep a tab on Canada’s wholesale sales data for February, slated for release later today. During the session, the pair traded at a high of 1.1026 and a low of 1.1014. Yesterday, the USD traded 0.13% lower against the CAD in the New York session, and closed at 1.1012.
The pair is expected to find its first support at 1.1005 and first resistance at 1.1033.
AUD USD
The AUD is trading at 0.9356 against the USD, at 9:40 GMT this morning, 0.34% higher from the New York close, ahead of Australia’s consumer inflation data for the first quarter. Data released overnight, revealed that the CB leading index in Australia rose 0.3% in February to 128.6, compared to a 0.2% increase in January. During the session, the pair traded at a high of 0.9372 and a low of 0.9328. AUD traded slightly lower against the USD in the New York session, and closed at 0.9324.
The pair is expected to find its first support at 0.9325 and first resistance at 0.9380.
Gold
At 9:40 GMT, Gold is trading at $1290.70 per ounce, 0.06% higher from the New York close, as the US Dollar shed some of its earlier gains. However, initially the precious metal came under pressure after SPDR Gold Trust reported a fall of 3.0 tons in its holdings on Monday. This morning, Gold traded at a high of $1292.60 and a low of $1285.90 per ounce. In the New York session yesterday, the yellow metal traded 0.10% higher, and closed at $1289.90.
Gold has its first support at $1284.30 and first resistance at $1295.50.
Silver
Silver is trading at $19.45 per ounce, 0.15% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.50 and a low of $19.29. Silver traded 0.13% higher against the USD in the New York session, and closed at $19.42, tracking gains in the prices of gold.
Silver has its first support at $19.32 and first resistance at $19.54.
Crude Oil
At 9:40 GMT, Oil is trading at $103.99 per barrel, 0.30% lower from the New York close. This morning, Oil traded at a high of $104.36 and a low of $103.90. Yesterday, Oil traded 0.13% higher in the New York session, and closed at $104.33, amid lingering tensions between the US and Russia over Ukraine and following the release of a strong US leading economic indicator.
It has its first support at $103.64 and first resistance at $104.56.
Economic Snapshot
Euro-zone construction output rose at a slower pace in February
Eurostat reported that on a working day adjusted annual basis, construction output in the Euro-zone rose 6.7% in February, compared to a revised increase of 8.0% recorded in the previous month.
Swiss M3 money supply rose in March
On an annual basis, M3 money supply in Switzerland rose 9.0% in March, compared to an 8.7% revised rise recorded in the previous month.
Japan’s final leading economic index declined in February
The final leading economic index in Japan declined to a level of 108.9 in February, less than the preliminary estimate of 108.5 and compared to a revised level of 113.5 reported in the previous month. Meanwhile, the final coincident index declined to a level of 113.0 in February, more than the preliminary estimate of 113.4 and compared to a revised level of 114.9 recorded in the previous month.
Australia CB leading economic index rose at a faster pace in February
The CB leading economic index in Australia increased 0.3% in February, following a rise of 0.2% recorded in the preceding month.
Good trades.
