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 few planned speeches from top Fed officials.
The GBP is trading higher against the USD, ahead of the Gkf consumer confidence data for the UK economy. Earlier today, the BoE Governor, Mark Carney, citing the risks from the nation’s booming housing sector, announced stricter mortgage rules to cool the UK housing markets. Furthermore, he opined that the UK economy was still vulnerable to risks and as a result the central bank would have to opt for a gradual rate-hike path.
In yesterday’s New York session, the greenback traded mostly higher against the key currencies. However, earlier the greenback came under pressure after data revealed that the US economy shrank more than expected in the first quarter and as durable goods orders in the nation unexpectedly fell for the first time in four months.
The EUR came under pressure as ECB’s Luis Maria Linde hinted that the central bank was mulling options to introduce asset-purchase measures in the Euro-zone. However, another ECB policymaker, Jens Weidmann cautioned that the ECB’s plans to purchase securitized debt would turn it into “a bad bank.”
The SNB, in its quarterly bulletin, defended its decision to maintain the currency cap on the CHF and projected a moderate pace of recovery to continue in the Swiss economy.
EUR USD
This morning at 9:40 GMT, the EUR is trading at 1.3616 against the USD, 0.11% lower from the New York close. In economic news, Insee reported that consumer confidence in France rose more than expected in June to the highest level in three months. During the session, the pair traded at a high of 1.3642 and a low of 1.3616. Yesterday, the EUR traded 0.08% lower against the USD in the New York session, and closed at 1.3631. An ECB official, Luis Maria Linde hinted that the central is mulling QE measures in the Euro-zone economy.
The pair is expected to find its first support at 1.3593 and first resistance at 1.3645.
GBP USD
At 9:40 GMT, the GBP is trading at 1.7030 against the USD, 0.27% higher from the New York close, ahead of the Gfk UK consumer confidence index. Earlier today, the BoE Governor, Mark Carney, highlighting the economic perils arising from UK’s booming housing market, hinted the central bank’s willingness to take immediate actions if imminent housing risks emerge. During the session, the pair traded at a high of 1.7036 and a low of 1.6980. Yesterday, the British Pound traded 0.08% lower versus the Dollar in the New York session, and closed at 1.6984.
The pair is expected to find its first support at 1.6983 and first resistance at 1.7056.
USD JPY
The USD is trading at 101.74 against the JPY at 9:40 GMT this morning, 0.08% lower from the New York close. During the session, the pair traded at a high of 101.87 and a low of 101.74. In the New York session yesterday, the USD traded 0.13% higher against the JPY, and closed at 101.83. A survey report from Reuters, showed that majority of the 29 economists surveyed expected the BoJ to implement additional stimulus in the economy before the year-end, mostly at its 31 October 2014 meeting.
The pair is expected to find its first support at 101.58 and first resistance at 101.93.
USD CHF
This morning at 9:40 GMT, the USD is trading at 0.8938 against the Swiss Franc, 0.11% higher from the New York close. During the session, the pair traded at a high of 0.8942 and a low of 0.8924. In the New York session yesterday, the USD traded 0.15% higher against the CHF, and closed at 0.8928. Late Wednesday, the SNB, in its quarterly report for the third quarter of 2014, reaffirmed its decision to keep its currency cap on the Swiss Franc and projected the Swiss economy to continue with its moderate pace of recovery in the upcoming quarters with a growth rate of around 2.0% for 2014.
The pair is expected to find its first support at 0.8915 and first resistance at 0.8954.
USD CAD
At 9:40 GMT, the USD is trading at 1.0708 against the CAD, 0.13% lower from the New York close. Looking forward, traders are expected to keep a tab on Canadian April average weekly earnings data for further cues in the loonie. During the session, the pair traded at a high of 1.0727 and a low of 1.0708. Yesterday, the USD traded marginally lower against the CAD in the New York session, and closed at 1.0722.
The pair is expected to find its first support at 1.0691 and first resistance at 1.0737.
AUD USD
The AUD is trading at 0.9411 against the USD, at 9:40 GMT this morning, 0.09% higher from the New York close. Amid a lack of major economic releases from Australia, traders are expected to keep a tab on global economic news for further cues in the currency pair. During the session, the pair traded at a high of 0.9417 and a low of 0.9399. AUD traded 0.10% higher against the USD in the New York session, and closed at 0.9403.
The pair is expected to find its first support at 0.9375 and first resistance at 0.9432.
Gold
At 9:40 GMT, Gold is trading at $1311.60 per ounce, 0.60% lower from the New York close, as stronger equities weighed on the metal’s safe-haven appeal. This morning, Gold traded at a high of $1320.60 and a low of $1308.80 per ounce. In the New York session yesterday, the yellow metal traded 0.13% higher, and closed at $1319.50, as the latest batch of soft US economic data and lingering concerns on Iraq crisis, lured investors to favor the safe-haven metal. Media reports showed that Sunni insurgents attacked one of Iraq's largest air bases and seized control of several small oilfields on Wednesday.
Gold has its first support at $1305.07 and first resistance at $1321.87.
Silver
Silver is trading at $20.87 per ounce, 0.76% lower from the New York close, at 9:40 GMT this morning. This morning, Silver traded at a high of $21.05 and a low of $20.80. Silver traded 0.53% higher against the USD in the New York session, and closed at $21.03, amid strong demand for safe-haven assets.
Silver has its first support at $20.71 and first resistance at $21.09.
Crude Oil
At 9:40 GMT, Oil is trading at $106.47 per barrel, 0.20% lower from the New York close. This morning, Oil traded at a high of $106.81 and a low of $106.35. Yesterday, Oil traded 0.53% higher in the New York session, and closed at $106.71. However, gains in oil prices were capped amid growing bets that tensions in Iraq would not impact the nation’s oil supply and as the EIA reported a surprise rise in the US crude stockpiles by 1.74 million barrels to 388.0 million barrels for the week ended 20 June 2014.
It has its first support at $105.68 and first resistance at $107.06.
Economic Snapshot
BoE tightened mortgage-lending rules
The Bank of England (BoE), in its Financial Stability Report, tightened mortgage-lending rules in the UK. Furthermore, it indicated that, although rising house prices does not yet pose a risk to the stability of UK’s financial system, it would be wise to take action against the risk to counter further significant rise in the number of highly-indebted households.
French consumer confidence increased unexpectedly in June
The National Institute of Statistics and Economic Studies (INSEE) reported that consumer confidence in France rose to a level of 86.0 in June, higher than market expectations of a level of 85.0 and compared to a reading of 85.0 reported in the previous month.
Australian job vacancies rose in March to May quarter
The Australian Bureau of Statistics reported that on a seasonally adjusted quarterly basis, job vacancies in Australia increased 2.5% for March to May quarter, compared to a revised 2.8% rise in the previous quarter.
Good trades.