Daily Currency Report (2016.06.16)

Daily Currency Report – This morning, the greenback is trading higher against most of the major currencies.

The GBP is trading lower against the USD. Going forward, traders will keep an eye on the Bank of England’s interest rate decision for further direction in the Pound. Meanwhile, data revealed that UK’s retail sales advanced more than market estimates in May, backed by a strong rise in clothing sales.

The YEN gained ground against the USD. Earlier in the session, the Bank of Japan maintained the key interest rate at -0.1% and its stimulus program intact at ¥80 trillion, indicating that the central bank has opted to continue reviewing the effect of negative interest rates in the economy.

Yesterday, the greenback traded lower in the New York session against the key currencies, after the US Federal Reserve kept the benchmark interest rate unchanged at 0.5%, amid an uncertain labor market. Moreover, the central bank further signaled that it will raise rates twice in 2016, yet did not provide any time frame over the next rate hike. Moreover, the Fed Chair, Janet Yellen announced that Britain’s June 23 referendum decision would pose consequences for economic and financial conditions in global financial markets. Further, the bank also indicated that the US economy will grow only 2.0% in this year and 2017, 0.1 percentage point lower than previously forecasted for each year. Macroeconomic data showed that US industrial production contracted more-than-expected in May, amid a decline in utilities output and auto manufacturing.

EURUSD

At 09:40 GMT, the pair is trading at 1.1255, with the EUR trading marginally lower against USD from the New York close. In economic news, the Euro-zone’s consumer price index advanced more-than-expected on a monthly basis in May. The pair witnessed a high of 1.1295 and a low of 1.1248 during the session. The Euro traded 0.28% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 1.1260.  The pair is expected to its find support at 1.1209 and its first resistance at 1.1299.

GBPUSD

The GBP is trading at 1.4167 against the USD at 09:40 GMT, 0.20% lower from the New York close. On the economic front, UK’s retail sales climbed more-than-expected on a monthly basis in May, despite Brexit fears. The Pound hit a high of 1.4205 and a low of 1.4121 against the US Dollar this morning. Yesterday, the Pound traded 0.24% higher against the US Dollar in the New York session and ended at 1.4195.  Immediate downside, the first support level is seen at 1.4119, while on the upside, the first resistance level is situated at 1.4216.

USDJPY

The US Dollar is trading at 104.23 against the Yen at 09:40 GMT, 1.66% lower from the New York close. Earlier today, the Bank of Japan (BoJ) kept the monetary policy program unchanged, at par with market expectations. The pair traded at a high of 106.01 and a low of 103.58 this morning. Yesterday, the US Dollar traded 0.10% lower against the Yen in the New York session and ended at 105.99. Immediate downside, the first support level is seen at 103.10, while on the upside, the first resistance level is situated at 105.84.

USDCHF

This morning, at 09:40 GMT, the US Dollar is trading at 0.9612 against the Swiss Franc, marginally higher from the New York close. In economic news, the Swiss National Bank maintained the benchmark interest rate at -0.75% and reiterated that the Swiss Franc is “significantly overvalued”.  The pair witnessed a high of 0.9624 and a low of 0.9568 during the session. Yesterday, the USD traded 0.21% lower against the CHF in the New York session and ended at 0.9609.  Immediate downside, the first support level is seen at 0.9567, while on the upside, the first resistance level is situated at 0.9659.

USDCAD

At 09:40 GMT, the pair is trading at 1.2962, with the USD trading 0.36% higher against CAD from the New York close.  This morning, the pair traded at a high of 1.2984 and a low of 1.2891. The US Dollar advanced against the Canadian Dollar in the New York session yesterday, closing 0.37% higher at 1.2916. On the economic front, Canada’s manufacturing shipments advanced more-than-expected on a monthly basis in April. The pair is expected to its find support at 1.2861 and its first resistance at 1.3023.

AUDUSD

The Australian Dollar is trading at 0.7364 against the US Dollar at 09:40 GMT, 0.50% lower from the New York close. Earlier in the session, data showed that Australia’s seasonally adjusted unemployment rate remained steady at 5.7% in May. The pair witnessed a high of 0.7434 and a low of 0.7342 during the session. The Australian Dollar traded 0.14% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7401.  The pair is expected to its find support at 0.7323 and its first resistance at 0.7425.

Gold

The precious metal is trading at $1308.40 per ounce at 09:40 GMT this morning, 0.93% higher from the New York close. This morning, the precious metal traded at a high of $1316.80 per ounce and a low of $1293.20 per ounce. Yesterday, gold traded 0.80% higher in the New York session and closed at $1296.30 per ounce, amid weakness in the greenback following the US Federal Reserve’s decision of keeping interest rate unchanged and scaled back rate hike projections. Gold has its first support at $1287.53 per ounce and its first resistance at $1323.03 per ounce.

Silver

The precious metal is trading at $17.75 per ounce at 09:40 GMT this morning, 1.08% higher from the New York close. During the session, silver traded at a high of $17.88 per ounce and a low of $17.55 per ounce. In the New York session yesterday, silver rose 0.46% and closed at $17.56 per ounce, tracking gains in gold prices. Silver has its first support at $17.46 per ounce and its first resistance at $17.96 per ounce.

Oil

The commodity is trading at $47.50 per barrel at 09:40 GMT this morning, 0.15% higher from the New York close. Crude oil hit a high of $47.75 per barrel and a low of $47.22 per barrel during the session. In the New York session yesterday, crude oil fell 0.69% to close at $47.43 per barrel, despite the US Energy Department reporting that crude oil inventories fell by 933,000 bls last week and amid worries that Britain might leave the European Union. Immediate downside, the first support level is seen at $46.91 per barrel, while on the upside, the first resistance level is at $48.41 per barrel.

Economic Snapshot

UK retail sales rose more than expected in May

In May, on a monthly basis, retail sales registered a rise of 0.90% in the UK, more than market expectations for a rise of 0.20%. Retail sales had risen by a revised 1.90% in the previous month.

UK retail sales advanced more than expected in May

Retail sales recorded a rise of 6.00% on a YoY basis in May, in the UK, more than market expectations for a rise of 3.90%. In the prior month, retail sales had recorded a revised rise of 5.20%.

Eurozone consumer price index rose as expected in May

In May, the consumer price index advanced 0.30% in the Eurozone on a monthly basis, meeting market expectations. The consumer price index had registered a flat reading in the previous month.

Eurozone consumer price index declined as expected in May

The final consumer price index in the Eurozone dropped 0.10% in May on an annual basis, meeting market expectations. The preliminary figures had also recorded a drop of 0.10%. In the prior month, the consumer price index had recorded a drop of 0.20%.

Swiss National Bank held its key interest rate steady

The Swiss National Bank held its key interest rate steady at -0.75%. Markets were expecting the central bank to hold its key interest rate at -0.75%.

Bank of Japan kept its key interest rate steady

The Bank of Japan kept its key interest rate unchanged at -0.10%. Markets were anticipating the central bank to maintain its key interest rate at -0.10%.

Australian unemployment rate remained flat in May

The seasonally adjusted unemployment rate in Australia remained steady at a level of 5.70% in May. Markets were anticipating unemployment rate to record a flat reading.

Australian consumer inflation expectations registered a rise in June

The consumer inflation expectations in Australia climbed to 3.50% in June, compared to a level of 3.20% in the prior month.

Source: Direct Forex Broker (Review and Forex Rebates UP TO 85%)