Forex Market Update
This morning, the greenback is trading lower against most of the major currencies, as risk appetite was boosted following US political leaders were making progress on a budget deal to avoid the fiscal cliff.
Late yesterday, Reuters reported that Barack Obama, the US President, has made a new offer to avoid the impending US "fiscal cliff". The White House's latest counteroffer includes USD 1.20 trillion in revenue increases and USD 1.22 trillion in spending cuts.
Meanwhile, in data just released, UK inflation stayed at its highest level since May in November, against expectation that it would ease; potentially giving the Bank of England less room to resume quantitative easing to support the struggling economy.
Spain saw borrowing costs decline at an auction of three- and six-month government bonds today, as signs of progress in tackling the Euro-zone's debt crisis supported sentiment. Following the auction, the yield on Spanish 10-year bonds stood at 5.38%.
The Japanese Yen continues to register losses, after a victory for Japan's Liberal Democratic Party in elections on Sunday fuelled speculation for aggressive easing steps by the Bank of Japan.
The Australian dollar came under pressure after the nation's Reserve Bank cited a softer labor market for cutting interest rates at this month's meeting. The minutes came after the Conference Board reported that its leading index for Australia rose by 0.2% in October, after a 0.4% decline the previous month.
The greenback traded mixed in the New York session yesterday, against the key currencies.
EUR USD
This morning at 10:40 GMT, the EUR is trading at 1.3188 against the USD, 0.19% higher from the New York close, as signs of progress in tackling the Euro-zone's debt crisis supported sentiment. The European Central Bank (ECB), President Mario Draghi stated that the ECB policies and governance reforms in the euro area have revived confidence that would help foster a gradual economic recovery in the second half of next year. During the session, the pair traded at a high of 1.3190 and a low of 1.3155. Yesterday, the EUR traded marginally lower against the USD in the New York session, and closed at 1.3163.
The pair is expected to find its first support at 1.3161 and first resistance at 1.3202.
GBP USD
At 10:40 GMT, the GBP is trading at 1.6221 against the USD, 0.10% higher from the New York close. Data released this morning showed that the annual rate of consumer price inflation in the UK held steady at 2.7% in November, after an unexpected increase in October, and compared to expectations for a dip to 2.6%. During the session, the pair traded at a high of 1.6227 and a low of 1.6194. Yesterday, the British Pound traded modestly lower versus the Dollar in the New York session, and closed at 1.6204.
The pair is expected to find its first support at 1.6200 and first resistance at 1.6235.
USD JPY
The USD is trading at 83.90 against the JPY at 10:40 GMT this morning, flat from the New York close.
The Yen remained under pressure amid mounting expectations that the Bank of Japan would implement more aggressive easing measures later this week. During the session, the pair traded at a high of 84.11 and a low of 83.83. In the New York session yesterday, the USD traded 0.04% higher against the JPY, and closed at 83.88.
The pair is expected to find its first support at 83.66 and first resistance at 84.13.
USD CHF
This morning at 10:40 GMT, the USD is trading at 0.9160 against the Swiss Franc, 0.17% lower from the New York close. During the session, the pair traded at a high of 0.9187 and a low of 0.9156. In the New York session yesterday, the USD traded flat against the CHF, and closed at 0.9176.
The pair is expected to find its first support at 0.9148 and first resistance at 0.9181.
USD CAD
At 10:40 GMT, the USD is trading at 0.9843 against the CAD, 0.07% higher from the New York close. During the session, the pair traded at a high of 0.9846 and a low of 0.9830. Yesterday, the USD traded 0.38% lower against the CAD in the New York session, and closed at 0.9836.
The pair is expected to find its first support at 0.9821 and first resistance at 0.9874.
AUD USD
The AUD is trading at 1.0537 against the USD, at 10:40 GMT this morning, 0.15% lower from the New York close. The minutes of the Reserve Bank of Australia's (RBA) latest monetary policy meeting have indicated that the central bank's rate cut decision was to support underperforming sectors of the economy, including housing construction and retail, ahead of the expected peak in the resource sector investment. During the session, the pair traded at a high of 1.0562 and a low of 1.0530. AUD traded 0.16% higher against the USD in the New York session, and closed at 1.0553.
The pair is expected to find its first support at 1.0522 and first resistance at 1.0557.
Gold
At 10:40 GMT, Gold is trading at $1699.80 per ounce, 0.09% higher from the New York close, amid renewed optimism on the progress of the US budget talks. This morning, Gold traded at a high of $1703.35 and a low of $1695.75 per ounce. In the New York session yesterday, the yellow metal traded 0.39% higher, and closed at $1698.20.
Gold has its first support at $1691.99 and first resistance at $1705.48.
Silver
Silver is trading at $32.45 per ounce, 0.52% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $32.54 and a low of $32.25 per ounce. Silver traded 0.18% higher against the USD in the New York session, and closed at $32.28.
Silver has its first support at $32.16 and first resistance at $32.63.
Crude Oil
At 10:40 GMT, Oil is trading at $87.72 per barrel, 0.30% higher from the New York close amid demand prospects fueled by optimism that policy makers were making progress in reaching a deal to avert the 'fiscal cliff' in the US. Investors await the oil inventory reports later today and tomorrow to offer guidance to oil prices. This morning, Oil traded at a high of $87.90 and a low of $87.20. Yesterday, Oil traded 0.91% higher in the New York session, and closed at $87.45.
It has its first support at $86.83 and first resistance at $88.25.
Economic Snapshot
UK house prices increased at the slowest pace in six months in October
In the UK, the DCLG house price index rose 1.5% (YoY) in October, slower than the 1.7% gain recorded in September.
UK annual inflation remained unchanged in November
On an annual basis, inflation remained stable at 2.7% in November. On a monthly basis, consumer prices increased at a slower pace of 0.2% in November, following a 0.5% rise in October. Moreover, retail price inflation slowed to 3.0% (YoY) in November, from 3.2% in October.
UK Producer Price Inflation declined in November
In the output price inflation fell to 2.2% (YoY) in November, from a revised 2.6% recorded in the previous month. Meanwhile, on an annual basis, input prices fell 0.3% in November, after staying flat in October.
Rate cut to boost non-mining sectors, indicate RBA minutes
The minutes of the Reserve Bank of Australia's (RBA) latest monetary policy meeting indicated that the central bank's rate cut decision was to support underperforming sectors of the economy, including housing construction and retail, ahead of the expected peak in the resource sector investment.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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