Forex Market Update
This morning, the greenback is trading mostly higher against most of the major currencies, ahead of the crucial non-farm payrolls and unemployment numbers from the US.
The GBP is trading lower against the USD, after the construction activity in the UK lost momentum and fell to a six-month low level in April.
Earlier in the day, data released indicated that the Germany's manufacturing activity grew for a tenth consecutive month in April, however slightly below the flash reading. Furthermore, the manufacturing PMI across the Euro-zone continued to rise in April while unemployment in the region held steady at 11.8%, better than expectation in March.
This morning, the Japanese Prime Minister, Shinzo Abe stated that in order to overcome deflation in the nation, it is extremely important for wages and employment to register an upward trend. He further added that at present his sole objective is to spur Japan’s growth along with reinstating fiscal soundness. Another top government spokesman Yoshihide Suga noted that the employment conditions are “improving steadily” and is in sync with the government's expectations so far.
The greenback traded mixed in the New York session yesterday, against the key currencies, as the optimism from upbeat ISM manufacturing PMI and consumer spending in the US was offset by a report which indicated that jobless claims climbed to a nine-week high last week and the US manufacturing PMI eased more than estimates in April.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3861 against the USD, 0.06% lower from the New York close, after the manufacturing PMI from Germany for April came in below expectations. However, the manufacturing PMI of the Euro-zone topped estimates. Meanwhile, the unemployment rate in the region remained unchanged at previous month’s level in March. During the session, the pair traded at a high of 1.3872 and a low of 1.3856. Yesterday, the EUR traded marginally lower against the USD in the New York session, and closed at 1.3869, in a quiet holiday trading session.
The pair is expected to find its first support at 1.3846 and first resistance at 1.3881.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6881 against the USD, 0.05% lower from the New York close, after the UK construction PMI deteriorated to a 6-month low level in April. During the session, the pair traded at a high of 1.6896 and a low of 1.6884. Yesterday, the British Pound traded tad higher versus the Dollar in the New York session, and closed at 1.6890.
The pair is expected to find its first support at 1.6865 and first resistance at 1.6906.
USD JPY
The USD is trading at 102.49 against the JPY at 9:40 GMT this morning, 0.17% higher from the New York close. On the macro front, the unemployment rate in the nation stood steady while job creation accelerated to 520,000 in March from a year earlier. Additionally, overall household spending rebounded in March and monetary base in the nation climbed less than expectation in April. During the session, the pair traded at a high of 102.52 and a low of 102.30. In the New York session yesterday, the USD finished flat against the JPY, and closed at 102.32.
The pair is expected to find its first support at 102.26 and first resistance at 102.62.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8795 against the Swiss Franc, marginally higher from the New York close. The Swiss Franc received support for a brief period of time after the SVME manufacturing in Switzerland advanced more than expected to a reading of 55.8 in April from a reading of 54.4 reported in the previous month. During the session, the pair traded at a high of 0.8808 and a low of 0.8794. In the New York session yesterday, the USD traded 0.06% higher against the CHF, and closed at 0.8793.
The pair is expected to find its first support at 0.8783 and first resistance at 0.8808.
USD CAD
At 9:40 GMT, the USD is trading at 1.0975 against the CAD, 0.11% higher from the New York close. During the session, the pair traded at a high of 1.0978 and a low of 1.0959. Yesterday, the USD traded 0.25% lower against the CAD in the New York session, and closed at 1.0963. The RBC Canadian manufacturing PMI decelerated in April while its employment measure rose to its highest level since November.
The pair is expected to find its first support at 1.0952 and first resistance at 1.0998.
AUD USD
The AUD is trading at 0.9267 against the USD, at 9:40 GMT this morning, tad higher from the New York close, despite data indicating that producer price index in Australia came in more than expectations in the first quarter. During the session, the pair traded at a high of 0.9282 and a low of 0.9268. AUD traded slightly higher against the USD in the New York session, and closed at 0.9266.
The pair is expected to find its first support at 0.9254 and first resistance at 0.9285.
Gold
At 9:40 GMT, Gold is trading at $1285 per ounce, marginally higher from the New York close. This morning, Gold traded at a high of $1285.5 and a low of $1281.6 per ounce. In the New York session yesterday, the yellow metal traded 0.31% higher, and closed at $1284.50. However, gains were limited as the latest batch of buoyant US releases weighed on the safe-haven appeal of the metal. Additionally, a decline in the holding of SPDR Gold Trust to its lowest level since January 2009, further weighed on the gold prices.
Gold has its first support at $1278.37 and first resistance at $1290.57.
Silver
Silver is trading at $19.17 per ounce, 0.55% higher from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.18 and a low of $18.98. Silver traded 0.79% higher against the USD in the New York session, and closed at $19.06.
Silver has its first support at $18.83 and first resistance at $19.36.
Crude Oil
At 9:40 GMT, Oil is trading at $99.88 per barrel, 0.70% higher from the New York close. This morning, Oil traded at a high of $100.09 and a low of $99.2. Yesterday, Oil traded 0.36% higher in the New York session, and closed at $99.22, on the back of robust US economic releases that strengthened the recovery prospect of the world’s largest economy. However, oil prices lost ground during the day following downbeat Chinese manufacturing PMI data and easing supply concerns in the US and Libya.
It has its first support at $99.05 and first resistance at $100.40.
Economic Snapshot
UK Markit construction PMI declined more than anticipated in April
The Chartered Institute of Purchasing & Supply and Markit Economics reported that the construction purchasing managers’ index (PMI) in UK dropped to a reading of 60.8 in April, following a reading of 62.5 in the previous month. Markets had expected the index to ease to a reading of 62.2 in April.
Eurozone final manufacturing PMI advanced more than the preliminary estimate in April
Markit Economics reported that the final manufacturing purchasing managers’ index (PMI) in the Eurozone increased to a level of 53.4 in April, more than the preliminary estimate of 53.3 and compared to a reading of 53.0 reported in the previous month.
Eurozone unemployment rate remained unexpectedly steady in March
Eurostat reported that the unemployment rate in the Eurozone remained unchanged at 11.8% in March, compared to a revised similar rate reported in the previous month. Markets were expecting the unemployment rate to rise to 11.9% in March.
Germany manufacturing PMI rose less than the preliminary estimate in April
Markit Economics reported that the final manufacturing purchasing managers’ index (PMI) in Germany rose to a reading of 54.1 in April, less than the preliminary estimate of a level of 54.2 and compared to a reading of 53.7 reported in the previous month.
France manufacturing PMI fell less than the preliminary estimate in April
Markit Economics reported that the final manufacturing purchasing managers’ index (PMI) in France dropped to a reading of 51.2 in April, less than the preliminary estimate of a level of 50.9 and compared to a reading of 52.1 reported in the preceding month.
Italy manufacturing PMI climbed more than expected in April
Markit Economics reported that the manufacturing Purchasing Managers’ Index (PMI) in Italy increased to a level of 54.0 in April compared to a reading of 52.4 reported in the previous month. Market had expected the index to rise to a level of 52.9 in April.
Spain manufacturing PMI dropped unexpectedly in April
Markit Economics reported that the manufacturing Purchasing Managers’ Index (PMI) in Spain fell marginally to a level of 52.7 in April, compared to a level of 52.8 reported in the previous month. Market had expected the index to rise to a level of 53.4 in April.
Swiss manufacturing PMI rose than expected in April
The SVME and Credit Suisse reported that the SVME manufacturing Purchasing Managers’ Index (PMI) in Switzerland rose to a level of 55.8 in April, more than market expectations and compared to a level of 54.4 reported in the previous month.
Australia HIA new home sales rose at a slower pace in March
The Housing Industry Association (HIA) reported that on a monthly basis, new home sales in Australia rose 0.2% in March, compared to a 4.6% rise in the previous month.
Australia producer price index advanced more than anticipated in Q1 2014
The Australian Bureau of Statistics reported that on a quarterly basis, the producer price index in Australia rose 0.9% in Q12014, following a rise of 0.2% recorded in the preceding quarter. Markets were expecting the producer price index to rise 0.6% in Q1 2014.
Good trades.
