Forex Market Update
This morning, the greenback is trading higher against most of the major currencies.
The Euro came under pressure, after data released this morning indicated that French consumer confidence fell to its lowest level in nearly five years in May. Yesterday, the Standard and Poor’s rating agency warned that France must deliver its promised budget cuts to avoid a credit rating downgrade. Meanwhile, import prices in Germany dropped more-than-expected in the month of April.
The Yen is trading lower against the dollar, after the advisor to the Japanese Prime Minister, Shinzo Abe, Koichi Hamada stated that the Bank of Japan would provide further stimulus, if necessary, to drive an economic revival.
The Swiss Franc is trading lower against the USD and the EUR, after data revealed that trade surplus in Switzerland unexpectedly narrowed for April, largely affected by a steep fall in exports due to sluggish demand in Europe, the nation’s biggest trading partner.
The US consumer confidence and Richmond Fed manufacturing index which are scheduled for release later in the day are expected to trigger much of the action in the forex market.
The greenback traded higher in the New York session yesterday, against the key currencies.
EUR USD
This morning at
09:40 GMT, the EUR is trading at 1.2926 against the USD, marginally lower from the New York close. In economic news, German import prices dropped 1.4% (MoM) in April, against the expectation of a 0.5% drop. Additionally, French consumer confidence index dropped unexpectedly to a reading of 79.0 in May, from a revised reading of 83.0 recorded in the previous month. During the session, the pair traded at a high of 1.2936 and a low of 1.2882. Yesterday, EUR traded marginally lower against the USD in the New York session, and closed at 1.2932.
The pair is expected to find its first support at 1.2889 and first resistance at 1.2957.
GBP USD
At
09:40 GMT, the GBP is trading at 1.5103 against the USD, marginally lower from the New York close. During the session, the pair traded at a high of 1.5115 and a low of 1.5064. Yesterday, GBP traded marginally lower against the USD in the New York session, and closed at 1.5110.
The pair is expected to find its first support at 1.5057 and first resistance at 1.5143.
USD JPY
The USD is trading at 102.02 against the JPY at
09:40 GMT this morning, 0.92% higher from the New York close, snapping yen’s recent rally stemming from concerns about a climb in Japanese government bond yields. On the data front, Japanese retail trade data is awaited later in the day which is expected to remain unchanged in April, compared to a 1.4% drop recorded in the previous month. During the session, the pair traded at a high of 102.35 and a low of 101.05. In the New York session yesterday, the USD traded 0.08% higher against the JPY, and closed at 101.09.
The pair is expected to find its first support at 101.08 and first resistance at 102.68.
USD CHF
This morning at
09:40 GMT, the USD is trading at 0.9681 against the Swiss Franc, 0.54% higher from the New York close. The Swiss Franc recorded losses after trade surplus in Switzerland narrowed to CHF1.73 billion in April, from a revised CHF1.89 billion recorded in the previous month. However, employment level in the nation rose to a seasonally adjusted 4.15 million in the first quarter of 2013, from 4.12 million recorded in the previous quarter. During the session, the pair traded at a high of 0.9706 and a low of 0.9624. In the New York session yesterday, the USD traded marginally lower against the CHF, and closed at 0.9629.
The pair is expected to find its first support at 0.9624 and first resistance at 0.9726.
USD CAD
At
09:40 GMT, the USD is trading at 1.0346 against the CAD, 0.07% higher from the New York close. During the session, the pair traded at a high of 1.0369 and a low of 1.0333. Yesterday, the USD traded 0.14% higher against the CAD in the New York session, and closed at 1.0339.
The pair is expected to find its first support at 1.0319 and first resistance at 1.0376.
AUD USD
The AUD is trading at 0.9663 against the USD, at
09:40 GMT this morning, 0.29% higher from the New York close. During the session, the pair traded at a high of 0.9682 and a low of 0.9596. AUD traded 0.09% lower against the USD in the New York session yesterday, and closed at 0.9635.
The pair is expected to find its first support at 0.9615 and first resistance at 0.9701.
Gold
At
09:40 GMT, Gold is trading at $1380.16 per ounce, 1.04% lower from the New York close. This morning, Gold traded at a high of $1396.62 and a low of $1377.69 per ounce. In the New York session yesterday, the yellow metal traded marginally lower, and closed at $1394.80.
Gold has its first support at $1372.85 and first resistance at $1392.31.
Silver
Silver is trading at $22.34 per ounce, 1.29% lower from the New York close, at
09:40 GMT this morning. This morning, Silver traded at a high of $22.68 and a low of $22.27 per ounce. Silver traded 0.16% lower against the USD in the New York session yesterday, and closed at $22.64.
Silver has its first support at $22.15 and first resistance at $22.65.
Crude Oil
At
09:40 GMT, Oil is trading at $94.68 per barrel, 1.10% higher from the New York close, on supply concerns escalating from violence in Syria, one of the major oil exporters. This morning, Oil traded at a high of $94.76 and a low of $93.54. Yesterday, Oil traded 0.18% higher against the USD in the New York session, and closed at $93.63.
It has its first support at $93.78 and first resistance at $95.17.
Economic Snapshot
German import price index fell in April
In Germany, import price index fell 3.2% (YoY) in April, compared to a 2.3% drop in March. On a monthly basis, import price index declined 1.4% in April, compared to a 0.1% drop recorded in the previous month.
French consumer confidence declined more-than-expected in May
In France, consumer confidence declined to a reading of 79.0 in May, from a downwardly revised reading of 83.0 in April. Market had expected consumer confidence to rise to a reading of 85.0.
Swiss trade surplus narrowed in April
In Switzerland, trade surplus narrowed to CHF1.73 billion in April, compared to a surplus of CHF1.89 billion recorded in the previous month. Market had expected trade surplus to widen to CHF2.05 billion. Additionally, exports rose to CHF17.00 billion in April, compared to CHF16.66 billion in the previous month. Imports rose to CHF15.28 billion in April, compared to CHF14.77 billion in the previous month.
Swiss employment level rose in the Q1 2013
In Switzerland, employment level rose to 4.15 million in the first quarter of 2013, compared to a level of 4.12 million in the previous quarter. Market had expected employment level to fall to 4.10 million.
Small business confidence in Japan declined in May
In Japan, the small business confidence index weakened to a reading of 48.2 in May, compared to a reading of 49.4 in April. Market had expected the index to rise to a reading of 50.0.
Leading index in China declined in April
In China, leading index fell to a reading of 99.8 in April, compared to a reading of 100.0 in March.
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