Forex Market Update
This morning, the greenback is trading mostly higher against most of the major currencies.
The Euro is trading in negative territory, after the former German Finance Minister, Oskar Lafontaine, also founder of the single currency, called for the “break-up” of the same. Moreover, over the weekend, the Executive Board member, Benoit Coure stated that further reductions in interest rates are possible, if the Euro-zone economic outlook deteriorates.
Data released this morning showed that retail sales in the Euro-zone dropped in March. However, the purchasing managers’ index for service sector in Italy, France, Germany and the Euro-zone rose more-than-expected in April.
In a key note, the Swiss Nation Bank’s (SNB) Vice President, Jean-Pierre Danthine further stressed on the importance of imposing a cap on the Swiss Franc and assured markets that the central bank would take necessary steps if the Euro crisis intensifies.
The Australian dollar fell after the seasonally adjusted monthly retail sales in Australia dropped unexpectedly in March, while job advertisements also declined in March, pointing to a feeble labor activity in the nation. Additionally, weaker Chinese HSBC services PMI in April further weighed on the currency.
The greenback traded lower in the New York session on Friday, against the key currencies. Economic news released on Friday indicated that unemployment rate in the US dropped to 7.5% in April, from 7.6% recorded earlier.
EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3104 against the USD, marginally lower from the New York close, after Oskar Lafontaine, the German finance minister when the Euro was launched, called for the break-up of the currency in order to allow Southern Europe to recover, and stated that current policies “are leading to disaster”. Services PMI data across the Europe came in broadly higher-than-expected in April, though remaining in the contraction territory. During the session, the pair traded at a high of 1.3142 and a low of 1.3092. On Friday, the EUR traded 0.50% higher against the USD in the New York session, and closed at 1.3109.
The pair is expected to find its first support at 1.3038 and first resistance at 1.3165.
GBP USD
At 09:40 GMT, the GBP is trading at 1.5565 against the USD, flat from the New York close. Trading in the Pound remained subdued as the UK markets are closed on account of a holiday. During the session, the pair traded at a high of 1.5599 and a low of 1.5556. On Friday, GBP traded 0.38% higher against the USD in the New York session, and closed at 1.5565.
The pair is expected to find its first support at 1.5496 and first resistance at 1.5618.
USD JPY
The USD is trading at 99.29 against the JPY at 09:40 GMT this morning, 0.25% higher from the New York close. Trading in the pair was mainly influenced by the greenback as Japanese investors are off for a public holiday. During the session, the pair traded at a high of 99.47 and a low of 99.05. In the New York session on Friday, the USD traded 0.07% lower against the JPY, and closed at 99.04.
The pair is expected to find its first support at 98.33 and first resistance at 99.85.
USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9379 against the Swiss Franc, 0.20% higher from the New York close. During the session, the pair traded at a high of 0.9381 and a low of 0.9338. In the New York session on Friday, the USD traded 0.35% lower against the CHF, and closed at 0.9360.
The pair is expected to find its first support at 0.9321 and first resistance at 0.9419.
USD CAD
At 09:40 GMT, the USD is trading at 1.0086 against the CAD, 0.07% higher from the New York close. In economic news, Canadian building permits and Ivey PMI data due later today are likely to generate market interest. During the session, the pair traded at a high of 1.0093 and a low of 1.0069. On Friday, the USD traded 0.36% lower against the CAD in the New York session, and closed at 1.0079.
The pair is expected to find its first support at 1.0062 and first resistance at 1.0118.
AUD USD
The AUD is trading at 1.0256 against the USD, at 09:40 GMT this morning, 0.56% lower from the New York close. Australian retail sales dropped a seasonally adjusted 0.4% (MoM) in March, compared to a 1.3% increase recorded in the previous month. During the session, the pair traded at a high of 1.0309 and a low of 1.0243. AUD traded 0.45% higher against the USD in the New York session on Friday, and closed at 1.0314.
The pair is expected to find its first support at 1.0224 and first resistance at 1.0306.
Gold
At 09:40 GMT, Gold is trading at $1474.63 per ounce, 0.26% higher from the New York close. This morning, Gold traded at a high of $1479.07 and a low of $1470.24 per ounce. In the New York session on Friday, the yellow metal traded 0.25% higher, and closed at $1470.75.
Gold has its first support at $1458.01 and first resistance at $1489.67.
Silver
Silver is trading at $24.21 per ounce, 0.36% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $24.45 and a low of $24.12 per ounce. Silver traded 0.82% higher against the USD in the New York session on Friday, and closed at $24.12.
Silver has its first support at $23.62 and first resistance at $24.62.
Crude Oil
At 09:40 GMT, Oil is trading at $96.16 per barrel, 0.70% higher from the New York close, as tension in the Middle East escalated following air strikes in Syria during the weekend. This morning, Oil traded at a high of $97.17 and a low of $95.91. On Friday, Oil traded 0.40% higher against the USD in the New York session, and closed at $95.49.
It has its first support at $94.24 and first resistance at $97.62.
Economic Snapshot
Euro-zone investor confidence climbed for May, indicates Sentix
The Sentix investor confidence index in the Euro-zone improved to a reading of -15.6 for May, compared to a level of -17.3 recorded in the previous month. Market had expected the consumer confidence to climb to a reading of -15.2.
Euro-zone services PMI rose in April
In Euro-zone, the final reading of services Purchasing Managers’ Index (PMI) climbed to a reading of 47.0 in April, more than the preliminary reading of 46.6 and compared to a level of 46.4 recorded in March. Additionally, the final reading of the Euro-zone’s composite PMI rose to a reading of 46.9 in April, in line with the preliminary reading and compared to a level of 46.5 recorded in March.
Euro-zone retail sales declined in March
In the Euro-zone, retail sales dropped 2.4% (YoY) in March, higher than the downwardly revised decline of 1.7% recorded in the previous month. On a monthly basis, retail sales fell 0.1% in March, compared to an upwardly revised fall of 0.2% reported in the previous month.
German services PMI declined in April
In Germany, the final reading of services PMI fell to a level of 49.60 in April, more than the preliminary reading of 49.20 and compared to a level of 50.90 recorded in March.
France’s services PMI rose in April
In France, the final services PMI rose to a level of 44.30 in April, more than the preliminary reading of 44.10 and compared to a level of 41.10 registered in the previous month.
Italian services PMI climbed in April
In Italy, services PMI climbed to a level of 47.00 in April, above expected level of 45.90 and compared to a level of 45.50 recorded in the previous month.
Spain’s services PMI contracted unexpectedly in April
In Spain, services Purchasing Managers’ Index (PMI) dropped to a level of 44.4 in April, below the expected level of 45.60 and compared to a reading of 45.30 recorded in the previous month.
Spain’s unemployment declined in April
The number of unemployed people in Spain dropped by 46.1K in April, compared to a decrease of 5.0K registered in the previous month.
Australian retail sales declined unexpectedly in March
On a seasonally adjusted monthly basis, retail sales in Australia declined 0.4% in March, compared to a 1.3% rise posted in February.
Chinese services PMI fell in April
The HSBC services PMI in China declined to a reading of 51.1 in April, compared to a reading of 54.3 posted in the previous month.
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