Forex Market Update
This morning, the greenback is trading lower against most of the major currencies.
Earlier in the Asian session, the European Central Bank (ECB) President, Mario Draghi stated that there are few signs of a possible stabilization in the Euro region and the economic situation still “remains challenging”.
The Euro rose higher, underpinned by improved risk appetite after data released this morning revealed that manufacturing PMI data across the Europe posted better-than-expected figures in May.
The Pound gained traction this morning, after UK’s manufacturing activity grew at its fastest pace in 14 months in May, boosting optimism that nation's recovery is becoming more broad based and less reliant on the services sector.
The Yen recovered from its previous session losses this morning, after the IMF warned on Friday that, the Japanese currency has fallen enough to a level “moderately below” its natural trading value.
The Australian is trading higher despite data indicated that retail sales in the nation rose less-than-expected in April. Also, official data from China, Australia’s major trading partner showed that, factory activity shrank for the first time in seven months in May and growth in services activity slowed down in the same month. The Reserve Bank of Australia’s monthly board meeting tomorrow would be of much interest to the investors, with most of the market participants expecting the rate to remain on hold at its record low of 2.75%.
EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3030 against the USD, 0.38% higher from the New York close. In the Euro-zone, manufacturing PMI data from Germany and France rose slightly more-than-expected in May, while Italian manufacturing activity rose to a four-month high in the same month. Additionally, European manufacturing activity eased in May. During the session, the pair traded at a high of 1.3044 and a low of 1.2987. On Friday, EUR traded 0.07% lower against the USD in the New York session, and closed at 1.2981.
The pair is expected to find its first support at 1.2967 and first resistance at 1.3068.
GBP USD
At 09:40 GMT, the GBP is trading at 1.5270 against the USD, 0.57% higher from the New York close, after manufacturing PMI in the UK rose to a reading of 51.3 in May, from a revised reading of 50.2 recorded in the previous month. Market had expected the index to remain unchanged. During the session, the pair traded at a high of 1.5289 and a low of 1.5196. On Friday, GBP traded 0.23% lower against the USD in the New York session, and closed at 1.5183.
The pair is expected to find its first support at 1.5177 and first resistance at 1.5326.
USD JPY
The USD is trading at 100.36 against the JPY at 09:40 GMT this morning, 0.31% lower from the New York close. During the session, the pair traded at a high of 100.77 and a low of 100.03. In the New York session on Friday, the USD traded 0.19% higher against the JPY, and closed at 100.67.
The pair is expected to find its first support at 99.85 and first resistance at 101.04.
USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9564 against the Swiss Franc, 0.39% lower from the New York close. In Switzerland, the SVME PMI expanded in the month of May, recording a reading of 52.2, from a reading of 50.2 in the previous month. During the session, the pair traded at a high of 0.9580 and a low of 0.9541. In the New York session on Friday, the USD traded 0.53% higher against the CHF, and closed at 0.9601.
The pair is expected to find its first support at 0.9509 and first resistance at 0.9623.
USD CAD
At 09:40 GMT, the USD is trading at 1.0368 against the CAD, marginally higher from the New York close. During the session, the pair traded at a high of 1.0376 and a low of 1.0343. On Friday, the USD traded 0.56% higher against the CAD in the New York session, and closed at 1.0367.
The pair is expected to find its first support at 1.0318 and first resistance at 1.0400.
AUD USD
The AUD is trading at 0.9643 against the USD, at 09:40 GMT this morning, 0.74% higher from the New York close. Data released from Australia indicated that retail sales rose to a seasonally adjusted 0.2% (MoM) in April, compared to a 0.4% drop recorded in the previous month. During the session, the pair traded at a high of 0.9653 and a low of 0.9598. AUD traded 0.25% lower against the USD in the New York session on Friday, and closed at 0.9572.
The pair is expected to find its first support at 0.9576 and first resistance at 0.9681.
Gold
At 09:40 GMT, Gold is trading at $1396.35 per ounce, 0.61% higher from the New York close, amid weakness in the US Dollar. This morning, Gold traded at a high of $1401.95 and a low of $1391.38 per ounce. In the New York session on Friday, the yellow metal traded 1.37% lower, and closed at $1387.92.
Gold has its first support at $1382.76 and first resistance at $1412.25.
Silver
Silver is trading at $22.46 per ounce, 0.89% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $22.55 and a low of $22.33 per ounce. Silver traded 0.14% lower against the USD in the New York session on Friday, and closed at $22.26.
Silver has its first support at $22.21 and first resistance at $22.67.
Crude Oil
At 09:40 GMT, Oil is trading at $92.01 per barrel, 0.40% higher from the New York close, as weak Chinese manufacturing data dampened demand prospects for the oil. This morning, Oil traded at a high of $92.09 and a low of $91.37. On Friday, Oil traded 0.95% lower against the USD in the New York session, and closed at $91.63.
It has its first support at $91.08 and first resistance at $93.12.
Economic Snapshot
UK’s manufacturing PMI rose in May
In the UK, the seasonally adjusted manufacturing purchasing managers’ index (PMI) advanced to a reading of 51.3 in May, from a revised reading of 50.2.
Euro-zone’s manufacturing PMI advanced in May
In the Euro-zone, the final manufacturing PMI climbed to a reading of 48.3 in May, higher than the flash reading of 47.8 and following a reading of 46.7 in April.
Germany's manufacturing sector activity improved in May
On a seasonally adjusted basis, the manufacturing PMI in Germany edged up to a reading of 49.4 in May, from a reading of 48.1 registered in April. Market had expected a reading of 49.0.
French manufacturing PMI records a rise in May
In France, the seasonally adjusted manufacturing PMI rose to a reading of 46.4 in May, higher than the expected reading of 45.5 and from a reading of 44.4 in April.
Switzerland's manufacturing PMI rose in May
The Swiss Association of Purchasing and Materials Management reported that its SVME manufacturing PMI in Switzerland rose to a reading of 52.2 in May, much higher than the expected reading of 50.8 in May and from a reading of 50.2 recorded in April.
Italy’s manufacturing PMI increased more-than-expected in May
In Italy, manufacturing PMI rose more than the expected to a reading of 47.3 in May, compared to a reading of 45.5 registered in the previous month.
Spain’s manufacturing PMI rose in May
Spain’s manufacturing PMI advanced to reading of 48.1 in May, above market consensus for a reading of 45.5 and compared to a reading of 44.7 recorded in April.
Australia TD securities inflation eased in May
On a monthly basis, TD securities inflation in Australia slipped to 0.2% in May, from 0.3% reported in April. Annually, TD securities inflation increased to 2.2% in May, from 2.1% in April.
Australia retail sales rose in April
On a seasonally adjusted monthly basis, retail sales in Australia increased 0.2% in April, lower than the expected 0.3% rise and compared to 0.4% fall recorded in the previous month.
China's non-manufacturing PMI slipped in May
In China, the non-manufacturing PMI declined to a reading of 54.3 in May, from a reading of 54.5 registered in the previous month.
China’s HSBC manufacturing PMI fell in May
According to the survey data from Markit/HSBC, manufacturing PMI in China fell to a reading of 49.2 in May, from a reading of 50.4 registered in the previous month.
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