Forex Market Update
This morning, the greenback is trading lower against most of the major currencies, ahead of the US weekly employment data and few planned speeches from top Fed officials.
The EUR and the GBP are trading higher, ahead of the ECB and the BoE’s monetary policy decision. Late Wednesday, in the Euro-zone, France Economy Minister, Arnaud Montebourg opined that a 10.0% weakness in the Euro could propel 0.6 percentage points growth in the French GDP over a year and twice as much over three years.
Demand for the AUD rose after unemployment rate in Australia surprisingly stood pat at previous month’s level of 5.8% as the economy added more-than-expected 14,200 jobs in April. Positive sentiment was also fuelled after trade surplus in Australia’s largest trading partner, China, expanded beyond analysts’ expectations for April.
Yesterday, the US traded higher against the key currencies in the New York session, after the Fed Chief, Janet Yellen projected the US economy to shrug off the dullness from the winter freeze and register a “solid growth” in the second quarter. However, she also opined that the economy was still in need of the central bank’s stimulus measure to completely eradicate slackness in its jobs markets.
During his speech in London, Japan’s Economy Minister, Akira Amari, citing a significant improvement in the nation’s labor market, highlighted his confidence in the growth of the Japanese economy.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3944 against the USD, 0.24% higher from the New York close, ahead of the ECB’s interest rate decision and press conference by Mario Draghi. In economic news, industrial production in Germany unexpectedly declined for the first time in five months in March. During the session, the pair traded at a high of 1.3948 and a low of 1.3908. Yesterday, the EUR traded 0.14% lower against the USD in the New York session, and closed at 1.3911.
The pair is expected to find its first support at 1.3917 and first resistance at 1.3960.
GBP USD
At 9:40 GMT, the GBP is trading at 1.6963 against the USD, 0.05% higher from the New York close, as traders await the BoE’s decision on its monetary policy. Earlier today, the RICS reported that house price balance in the UK economy eased last month but still remained close to November's 11-year high. Separately, Halifax also reported that its index on Britain house prices fell 0.2% (MoM) in March. During the session, the pair traded at a high of 1.6969 and a low of 1.6948. Yesterday, the British Pound traded 0.11% lower versus the Dollar in the New York session, and closed at 1.6954.
The pair is expected to find its first support at 1.6943 and first resistance at 1.6982.
USD JPY
The USD is trading at 101.81 against the JPY at 9:40 GMT this morning, 0.07% lower from the New York close. During the session, the pair traded at a high of 101.97 and a low of 101.75. In the New York session yesterday, the USD traded 0.06% higher against the JPY, and closed at 101.88. Late Wednesday, Japan’s Economy Minister, Akira Amari applauded BoJ’s effort to revive growth in the Japanese economy and stated that recent policy reforms have contributed a significant improvement in the nation’s labor markets
The pair is expected to find its first support at 101.54 and first resistance at 102.06.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8741 against the Swiss Franc, 0.25% lower from the New York close. On the economic front, Swiss consumer price index rose 0.1% (MoM) in April, in line with market estimates while the SECO consumer climate in Switzerland registered an unexpected fall in the first quarter of 2014. During the session, the pair traded at a high of 0.8767 and a low of 0.8742. In the New York session yesterday, the USD traded 0.18% higher against the CHF, and closed at 0.8763.
The pair is expected to find its first support at 0.8730 and first resistance at 0.8759.
USD CAD
At 9:40 GMT, the USD is trading at 1.0888 against the CAD, 0.09% lower from the New York close. During the session, the pair traded at a high of 1.0905 and a low of 1.0883. Yesterday, the USD ended the New York session flat against the CAD, and closed at 1.0898. However, earlier, the Canadian Dollar came under pressure after data showed that Canadian monthly building permits fell unexpectedly to the lowest level since February 2013 in March.
The pair is expected to find its first support at 1.0872 and first resistance at 1.0906.
AUD USD
The AUD is trading at 0.9388 against the USD, at 9:40 GMT this morning, 0.66% higher from the New York close, as the Australian economy witnessed a higher-than-expected jobs boost in April and after the unemployment rate in the nation stood pat at 5.8%, defying analysts’ call for a rise. During the session, the pair traded at a high of 0.9396 and a low of 0.9325. AUD traded 0.06% lower against the USD in the New York session, and closed at 0.9326.
The pair is expected to find its first support at 0.9338 and first resistance at 0.9417.
Gold
At 9:40 GMT, Gold is trading at $1290.00 per ounce, a tad higher from the New York close. This morning, Gold traded at a high of $1292.60 and a low of $1287.40 per ounce. In the New York session yesterday, the yellow metal traded 1.07% lower, and closed at $1289.90, pressurized by a stronger US Dollar. The safe-haven appeal of the metal also came under pressure as the Fed Chief portrayed a bright picture of the US economy and after the Russian President agreed to resolve Ukraine crisis.
Gold has its first support at $1280.37 and first resistance at $1305.87.
Silver
Silver is trading at $19.23 per ounce, 0.57% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $19.36 and a low of $19.21. Silver traded 1.07% lower against the USD in the New York session, and closed at $19.34, taking cues from a decline in gold prices.
Silver has its first support at $19.05 and first resistance at $19.56.
Crude Oil
At 9:40 GMT, Oil is trading at $100.41 per barrel, 0.50% lower from the New York close. This morning, Oil traded at a high of $100.92 and a low of $100.33. Yesterday, Oil traded 0.67% higher in the New York session, and closed at $100.92, after the EIA reported an unexpected 1.8-million-barrels drop in the US crude stockpiles last week. Meanwhile, reluctance on the part of Libyan rebels to surrender two oil ports to new Prime Minister, Ahmed Maiteeq, further supported the momentum in oil prices.
It has its first support at $99.80 and first resistance at $101.00.
Economic Snapshot
UK Halifax house prices declined unexpectedly in April
On a monthly basis, Halifax house prices in UK fell 0.2% in April, following a revised decrease of 1.2% recorded in the preceding month. Markets were expecting Halifax house prices to rise 0.9% in April.
German industrial production declined unexpectedly in March
On a monthly and seasonally adjusted basis, German industrial output dropped 0.5% in March, compared to a revised 0.6% rise recorded in the previous month. Market had expected industrial production to rise 0.2% in March.
Spain industrial output rose in March
On an annual basis, calendar adjusted industrial output in Spain rose 0.6% in March, compared to a revised 2.5% increase recorded in the previous month.
Switzerland SECO consumer climate declined unexpectedly in Q1 2014
The SECO consumer climate indicator in Switzerland fell unexpectedly to a level of 1.0 between January and April 2014, compared to a reading of 2.0 reported in the previous three months.
Swiss consumer price index rose in line with market estimate in April
On a monthly basis, the consumer price index in Switzerland rose 0.1% in April, in line with market estimates and compared to 0.4% rise reported in the previous month. Meanwhile, on a monthly basis, Switzerland’s EU harmonized consumer price index rose 0.1% in April, compared to a 0.6% rise recorded in the previous month.
Australia’s unemployment rate remained unexpectedly steady in April
On a seasonally adjusted basis, unemployment rate in Australia remained unchanged at 5.8% in April, compared to the previous month. Market had expected Australia’s unemployment rate to rise to 5.9% in April. Meanwhile, the seasonally adjusted number of people employed in Australia rose by 14.2K in April, compared to an upwardly revised rise of 21.9K in the previous month.
China’s trade surplus widened in April
Trade surplus of China rose to $18.46 billion in April, from a revised surplus of $7.70 billion recorded in the previous month.
Good trades.
