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This morning, the greenback is trading higher against most of the major currencies.
Yesterday, the greenback came under pressure, after the Minneapolis Fed President, Narayana Kocherlakota, opined that the central bank should take more efforts to boost the nation's economic growth. Echoing the same view, the Vice Chairman of the Federal Reserve (Fed), Janet Yellen, supported the central bank's policy of maintaining the key interest rate at exceptionally low levels.
This morning, the German Chancellor, Angela Merkel, stated that austerity measures in the Euro-zone area would require sacrifices as European leaders struggle to resolve the debt crisis, but would lead to regain sustainable economic growth.
The Pound failed to gain traction, after unemployment rate in the UK rose at the fastest pace in more than a year to 7.9%. Further weighing on the currency, the minutes of the Bank of England's (BoE) latest policy meeting revealed that only three out of nine policy members voted to increase bond buying program. Moreover, the IMF had earlier downgraded its 2013 growth forecast for the UK economy and called for the nation's Chancellor to ease up on his austerity programme.
In today's trading session, the release of Federal Bank's Beige book is awaited by investors, which would provide further insight into the health of the world's largest economy.
EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3155 against the USD, 0.21% lower from the New York close. In the Euro-zone, construction output declined 0.8% month-on-month in February, in comparison to 2.1% decrease in January. During the session, the pair traded at a high of 1.3201 and a low of 1.3152. Yesterday, EUR traded 0.36% higher against the USD in the New York session, and closed at 1.3183.
The pair is expected to find its first support at 1.3082 and first resistance at 1.3215.
GBP USD
At 09:40 GMT, the GBP is trading at 1.5260 against the USD, 0.69% lower from the New York close, after unemployment rate in the UK rose to 7.9% in March from 7.8% in February. Additionally, the Pound weakened after the Bank of England's (BoE) minutes of the recently held monetary policy meeting indicated that, its policy makers are still at odds voting 6-3 to not increase the size of the asset purchase target. During the session, the pair traded at a high of 1.5371 and a low of 1.5256. Yesterday, GBP traded 0.36% higher against the USD in the New York session, and closed at 1.5366.
The pair is expected to find its first support at 1.5217 and first resistance at 1.5341.
USD JPY
The USD is trading at 98.09 against the JPY at 09:40 GMT this morning, 0.35% higher from the New York close. In Japan, consumer confidence index improved for the third successive month to a reading of 44.8 in March from 44.2 in February. During the session, the pair traded at a high of 98.45 and a low of 97.55. In the New York session yesterday, the USD traded 0.32% lower against the JPY, and closed at 97.74.
The pair is expected to find its first support at 97.47 and first resistance at 98.58.
USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9240 against the Swiss Franc, 0.18% higher from the New York close. In Switzerland, the ZEW economic expectations index rose to a reading of 20.0 in April, far above market expectations for the index to rise to a reading of 5.0. During the session, the pair traded at a high of 0.9241 and a low of 0.9205. In the New York session yesterday, the USD traded 0.42% lower against the CHF, and closed at 0.9223.
The pair is expected to find its first support at 0.9195 and first resistance at 0.9294.
USD CAD
At 09:40 GMT, the USD is trading at 1.0242 against the CAD, 0.29% higher from the New York close. The Canadian Dollar continued to trade lower this morning, amid drop in oil prices. Investors await the Bank of Canada (BoC) interest rate decision followed by monetary policy report in the day ahead. Market expects the BoC to maintain interest rates steady. During the session, the pair traded at a high of 1.0249 and a low of 1.0208. Yesterday, the USD traded marginally higher against the CAD in the New York session, and closed at 1.0212.
The pair is expected to find its first support at 1.0213 and first resistance at 1.0260.
AUD USD
The AUD is trading at 1.0356 against the USD, at 09:40 GMT this morning, 0.28% lower from the New York close. In Australia, Westpac leading index rose 0.6% (MoM) in February, compared to a 0.4% growth in the previous month. During the session, the pair traded at a high of 1.0396 and a low of 1.0339. AUD traded 0.10% higher against the USD in the New York session yesterday, and closed at 1.0385.
The pair is expected to find its first support at 1.0330 and first resistance at 1.0391.
Gold
At 09:40 GMT, Gold is trading at $1385.15 per ounce, 1.02% higher from the New York close, scoring a significant rebound after a plunge in prices to a 2-year low earlier boosted physical buying. However, the traders remained cautious after Cyprus Finance Minister, Haris Georgiades, stated that the government plans to sell part of its gold reserves in the coming months. This morning, Gold traded at a high of $1386.25 and a low of $1365.17 per ounce. In the New York session yesterday, the yellow metal traded 1.84% lower, and closed at $1371.15.
Gold has its first support at $1364.08 and first resistance at $1404.89.
Silver
Silver is trading at $23.45 per ounce, 0.14% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $23.74 and a low of $23.15 per ounce. Silver traded 1.48% lower against the USD in the New York session yesterday, and closed at $23.42.
Silver has its first support at $23.08 and first resistance at $23.88.
Crude Oil
At 09:40 GMT, Oil is trading at $87.95 per barrel, 1.00% lower from the New York close. Late yesterday, the American Petroleum Institute (API) reported that the US crude oil inventories declined 6.7 million barrels for week ended 12th April. In the day ahead, markets await crude oil inventories data from the Energy Information Administration. This morning, Oil traded at a high of $89.09 and a low of $87.85. Yesterday, Oil traded 0.58% higher in the New York session, and closed at $88.88, as demand prospects spurred, as a positive US economic data soothed worries over the country's economic recovery.
It has its first support at $87.34 and first resistance at $88.83.
Economic Snapshot
MPC split 6-3 to keep stimulus steady, indicates BoE Minutes
According to the minutes of the Bank of England's (BoE) latest meeting held on April 3 and 4, the BoE Governor, Mervyn King and two other policymakers voted to increase the quantitative easing, while other six members stated that further easing might exacerbate inflation expectations and prompt renewed weakness in Pound. However, the Monetary Policy Committee (MPC) unanimously decided to maintain the record low 0.50% interest rate.
UK jobless claims dropped in March
In the UK, the number of jobless claims fell by 7,000 claims to a total of 1.53 million in March, compared to a 5,300 drop registered in February. Market had forecast no change in the claimant count. The claimant count rate remained unchanged at 4.6% in March, against the market expectation for an increase to 4.7%. Additionally, the ILO unemployment rate rose to 7.9% in the three months ended February, compared to a rate of 7.8% in the three months to January.
Euro-zone's construction production decreased at a slower pace in February
In the Euro-zone, construction production declined 0.8% (MoM) in February, slower than the revised 2.1% decrease registered in January. Annually, production in the construction sector rose 0.8% in February, following a 9.0% plunge recorded in the previous month.
Switzerland's ZEW survey economic expectations surged in April
In Switzerland, the ZEW survey indicator of economic expectations jumped to a reading of 20.0 in April, compared to a reading of 2.3 in the previous month.
Japan's consumer sentiment improved in March
On a seasonally adjusted basis, the consumer confidence index in Japan rose to a reading of 44.8 in March, from a reading of 44.2 in February. Market had expected a reading of 46.70.
Australia's Westpac leading index rose in February
On a monthly basis, the Westpac-Melbourne Institute's leading index advanced 0.6% in February, compared to a revised 0.4% rise reported in January.
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.
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