Forex Market Update
This morning, the greenback is trading lower against most of the major currencies, ahead of the Fed Chairperson, Janet Yellen’s speech, scheduled in a few hours from now.
The EUR is trading higher against the USD. Meanwhile, the ECB allocated €82.6 billion to 255 counterparties in the first of eight TLTROs to be carried out between 2014 and 2016.
The GBP is trading higher against the USD, as the UK retail sales maintained its pace of growth, on a monthly basis in August. Meanwhile, investors would pay close attention to today’s Scottish independence vote.
The JPY is trading lower against the USD. Earlier today, the BoJ Governor, Haruhiko Kuroda remained upbeat on the recovery of Japan’s exports.
The SNB kept its benchmark rate untouched, while further cautioning that Switzerland’s economic outlook has deteriorated considerably.
Yesterday, the greenback traded higher in the New York Session, after the Fed raised its projections for the target rate on overnight loans between banks at the end of next year. Meanwhile, Fed’s Janet Yellen, pledged to keep borrowing rates in the nation low for some more time. On the other hand, the CPI in the US unexpectedly fell on a monthly basis in August, while the NAHB housing price index rose to a 9-year high in September.
EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.2881 against the USD, 0.26% higher from the New York close. In economic news, Italian current account surplus widened in July. This morning, the pair traded at a high of 1.2908 and a low of 1.2834. Yesterday, the EUR traded 0.37% lower against the USD in the New York session, and closed at 1.3050.
The pair is expected to its find support at 1.2816 and its first resistance at 1.2964.
GBP USD
At 09:40 GMT, the pair is trading at 1.6306, with the Pound trading 0.3% higher against US Dollar from the New York close, after the UK retail sales rose more than expected on a monthly basis in August. The pair witnessed a high of 1.6324 and a low of 1.6247 during the session. Yesterday, the Pound traded 0.5% lower against the US Dollar in the New York session and ended at 1.6257.
Immediate downside, the first support level is seen at 1.6249, while on the upside, the first resistance level is situated at 1.6361.
USD JPY
This morning, at 09:40 GMT, the US Dollar is trading at 108.64 against the Yen, 0.13% higher from the New York close. On the macro front, Japanese machine orders advanced on an annual basis in August. During the session, the pair traded at a high of 108.88 and a low of 108.37. Yesterday, the US Dollar traded 1.19% higher against the Yen in the New York session and ended at 108.50.
The pair is expected to its find support at 107.56 and its first resistance at 109.30.
USD CHF
The US Dollar is trading at 0.9380 against the Swiss Franc at 09:40 GMT this morning, 0.45% lower from the New York close. The Swiss Franc was boosted after the SNB kept its interest rates unchanged at 0% in September. Meanwhile, Swiss trade surplus narrowed in August. The pair traded at a high of 0.9434 and a low of 0.9362 this morning. Yesterday, the USD traded 0.92% higher against the CHF in the New York session and ended at 0.9422.
The pair is expected to its find support at 0.9323 and its first resistance at 0.9435.
USD CAD
The pair is trading at 1.0992 at 09:40 GMT this morning, with the USD trading 0.2% lower against CAD from the New York close. Amid a light economic calendar today, investors would pay attention to economic news from other countries. The pair traded at a high of 1.1025 and a low of 1.0977 this morning. The US Dollar advanced against the Canadian Dollar in the New York session yesterday, closing 0.47% higher at 1.1014.
The pair is expected to its find support at 1.0937 and its first resistance at 1.1036.
AUD USD
The pair is trading at 0.8970 at 09:40 GMT this morning, with the Australian Dollar trading 0.2% higher against US Dollar from the New York close. Early today, the RBA reported that the foreign exchange transaction surplus in Australia fell in August. This morning, the pair traded at a high of 0.8979 and a low of 0.8938. The Australian Dollar traded 1.27% lower against the US Dollar in the New York session yesterday, with the pair closing the session at 0.8952.
The pair is expected to its find support at 0.8910 and its first resistance at 0.9058.
Gold
Gold is trading at $1223.50 per ounce at 09:40 GMT this morning, 0.22% higher from the New York close. This morning, the precious metal traded at a high of $1226.20 per ounce and a low of $1216.60 per ounce. Yesterday, gold traded 1.37% lower in the New York session and closed at $1220.80 per ounce amid a broad strength in the greenback.
Immediate downside, the first support level is seen at $1213.23 per ounce, while on the upside, the first resistance level is at $1237.13 per ounce.
Silver
The precious metal is trading at $18.52 per ounce at 09:40 GMT this morning, 0.11% higher from the New York close. During the session, silver traded at a high of $18.57 per ounce and a low of $18.47 per ounce. In the New York session yesterday, silver fell 0.99% and closed at $18.50 per ounce.
Immediate downside, the first support level is seen at $18.39 per ounce, while on the upside, the first resistance level is at $18.72 per ounce.
Crude Oil
The oil is trading at $94.44 per barrel at 09:40 GMT this morning, 0.54% higher from the New York close. Crude oil witnessed a high of $94.45 per barrel and a low of $93.62 per barrel during the session. In the New York session yesterday, crude oil fell 0.7% to close at $93.93 per barrel, as the Energy Information Administration (EIA) weekly report indicated that crude stockpiles in the US unexpectedly advanced by 3.67 million barrels to 362.3 million barrels in the week ended September 12, its first increase in five weeks.
Immediate downside, the first support level is seen at $93.69 per barrel, while on the upside, the first resistance level is at $95.13 per barrel.
Economic Snapshot
UK retail sales rose as expected in August
Office for National Statistics indicated that, on a MoM basis in the UK, retail sales registered a rise of 0.4% in August, meeting market expectations. In the previous month, retail sales had registered a revised flat reading.
Italian current account surplus widened in July
Current account surplus in Italy expanded to €6.81 billion in July, from a current account surplus of €3.05 billion in the prior month.
Swiss trade surplus narrowed in August
According to Swiss Statistics Office, trade surplus in Switzerland dropped to CHF1.39 billion in August, compared to a revised trade surplus of CHF3.90 billion in the previous month.
Swiss National Bank held its interest rate steady
Swiss National Bank held its interest rate steady at 0.0%, in line with market expectations.
Central bank would intervene to defend Swiss Franc cap against Euro, signalled the SNB
The Swiss National Bank (SNB) reiterated its earlier stance, indicating that the central bank would intervene in the foreign exchange market to prevent the Swiss Franc from surpassing 1.20 against the Euro. The SNB trimmed its domestic growth forecast for 2014 to 1.5% from 2% and kept its inflation forecast steady at 0.1%. However, the bank reduced its inflation projection to 0.2% and 0.5% for 2015 and 2016, respectively.
Japanese machine tool orders climbed in August
Japan Machine Tool Builders' Association indicated that, on an annual basis, machine tool orders registered a rise of 35.5% in Japan, in August. In the previous month, machine tool orders had registered a rise of 37.7%. The preliminary figures recorded a rise of 35.6%.
Japan's exports to head for moderate increase, indicated BoJ Governor
The Bank of Japan (BoJ) Governor, Haruhiko Kuroda indicated though recent economic data revealed weak industrial production and exports in Japan, he remain optimistic on the recovery of nation's exports, citing improvements in the global economy.
Australian foreign exchange transaction surplus narrowed in August
Reserve Bank of Australia indicated that the foreign exchange transaction surplus in Australia fell to A$381.0 million in August, following a foreign exchange transaction surplus of A$433.0 million in the previous month.
Happy pips.
