Daily Currency Report (2016.06.20)

Daily Currency Report – This morning, the greenback is trading lower against most of the major currencies. Going ahead, traders will keep an eye on Fed Chairwoman, Janet Yellen’s speech scheduled for tomorrow.

The EUR is trading higher against the USD. Data revealed that Eurozone’s construction output declined on a monthly basis in April, marking its third consecutive decline. Separately, Germany’s producer prices rose more-than-expected on a monthly basis in May.

The GBP is trading higher against the USD, after recent polls conducted in the nation indicated that opinions in favor of Britain remaining in the European Union increased. Moreover, on Friday, concerns surrounding a possible Brexit receded as both camps suspended campaigning following the killing of a British politician.

The CAD gained ground against the USD. Data indicated that Canada’s consumer price inflation slowed on an annual basis in May, following slower growth in more than two years in food prices. Moreover, consumer price index grew less-than-expected on a monthly basis in the same month. Further, the Bank of Canada’s consumer price index advanced in-line with market expectations.

On Friday, the greenback traded lower in the New York session, against the key currencies. Data indicated that US housing starts eased less-than-expected on a monthly basis in May. Meanwhile, building permits advanced lower than market estimates in the same month.

EURUSD

At 09:40 GMT, the pair is trading at 1.1335, with the EUR trading 0.52% higher against USD from the New York close. In economic news, Eurozone’s construction output dropped on a monthly basis in April from March. The pair witnessed a high of 1.1382 and a low of 1.1273 during the session. The Euro traded 0.22% higher against the US Dollar in the New York session on Friday, with the pair closing the session at 1.1276.  The pair is expected to its find support at 1.1256 and its first resistance at 1.1398.

GBPUSD

The GBP is trading at 1.4613 against the USD at 09:40 GMT, 1.87% higher from the New York close. The Pound hit a high of 1.4671 and a low of 1.4339 against the US Dollar this morning. On Friday, the Pound traded 0.54% higher against the US Dollar in the New York session and ended at 1.4345. Immediate downside, the first support level is seen at 1.4337, while on the upside, the first resistance level is situated at 1.4780.

USDJPY

The US Dollar is trading at 104.48 against the Yen at 09:40 GMT, 0.25% higher from the New York close. Overnight data indicated that Japan recorded a total merchandise trade deficit in May from a trade surplus recorded in the previous month. The pair traded at a high of 104.84 and a low of 104.08 this morning. On Friday, the US Dollar traded 0.1% lower against the Yen in the New York session and ended at 104.22. Immediate downside, the first support level is seen at 104.09, while on the upside, the first resistance level is situated at 104.86.

USDCHF

This morning, at 09:40 GMT, the US Dollar is trading at 0.9594 against the Swiss Franc, 0.05% lower from the New York close. Going forward, traders will eye Switzerland’s trade balance data scheduled fortomorrow. The pair witnessed a high of 0.9641 and a low of 0.9572 during the session. On Friday, the USD traded 0.25% lower against the CHF in the New York session and ended at 0.9599.  Immediate downside, the first support level is seen at 0.9564, while on the upside, the first resistance level is situated at 0.9633.

USDCAD

At 09:40 GMT, the pair is trading at 1.2824, with the USD trading 0.47% lower against CAD from the New York close.  This morning, the pair traded at a high of 1.2894 and a low of 1.2809. The US Dollar advanced against the Canadian Dollar in the New York session on Friday, closing marginally higher at 1.2885. On the data front, Canada’s consumer price index advanced less-than-expected on a monthly basis in May. The pair is expected to its find support at 1.2778 and its first resistance at 1.2902.

AUDUSD

The Australian Dollar is trading at 0.7450 against the US Dollar at 09:40 GMT, 0.78% higher from the New York close. Moving forward, market participants will eye RBA’s meeting minutes scheduled fortomorrow. The pair witnessed a high of 0.7471 and a low of 0.7378 during the session. The Australian Dollar traded 0.11% higher against the US Dollar in the New York session on Friday, with the pair closing the session at 0.7392.  The pair is expected to its find support at 0.7391 and its first resistance at 0.7490.

Gold

The precious metal is trading at $1287.10 per ounce at 09:40 GMT this morning, 1.11% lower from the New York close.  This morning, the precious metal traded at a high of $1302.70 per ounce and a low of $1283.30 per ounce. On Friday, gold traded 0.84% higher in the New York session and closed at $1301.60 per ounce, as weakness in the greenback, increased demand for the safe haven yellow metal. Gold has its first support at $1279.37 per ounce and its first resistance at $1298.77 per ounce.

Silver

The precious metal is trading at $17.40 per ounce at 09:40 GMT this morning, 0.68% lower from the New York close. During the session, silver traded at a high of $17.66 per ounce and a low of $17.32 per ounce. In the New York session on Friday, silver rose 0.55% and closed at $17.52 per ounce, tracking gains in gold prices. Silver has its first support at $17.22 per ounce and its first resistance at $17.62 per ounce.

Oil

The commodity is trading at $48.62 per barrel at 09:40 GMT this morning, 0.75% higher from the New York close. Crude oil hit a high of $48.90 per barrel and a low of $48.17 per barrel during the session. In the New York session on Friday, crude oil rose 2.35% to close at $48.26 per barrel. However, the gains in oil prices were capped after Baker Hughes reported that the US oil rig count rose by 9 to 337 last week. Immediate downside, the first support level is seen at $47.27 per barrel, while on the upside, the first resistance level is at $49.43 per barrel.

Economic Snapshot

UK Rightmove house price index climbed in June

Rightmove house price index registered a rise of 0.80% on a MoM basis, in June, in the UK. The Rightmove house price index had climbed 0.40% in the prior month.

Eurozone construction output eased in April

In the Eurozone, the seasonally adjusted construction output registered a drop of 0.20% in April on a monthly basis. Construction output had recorded a revised drop of 1.00% in the previous month.

German producer price index advanced more than expected in May

On a monthly basis, the producer price index climbed 0.40% in Germany, in May, higher than market expectations for a rise of 0.30%. In the previous month, the producer price index had registered a rise of 0.10%.

Spanish trade deficit slid in April

Spain reported trade deficit of €0.64 billion in April, following a trade deficit of €0.76 billion in the previous month.

Japanese imports fell as expected in May

Imports eased 13.80% on an annual basis in Japan, in May, compared to a fall of 23.30% in the prior month. Markets were anticipating imports to ease 13.80%.

Japan recorded merchandise (total) trade deficit in May

Merchandise (total) trade deficit in Japan recorded a level of ¥40.70 billion in May, compared to a revised merchandise (total) trade surplus of ¥823.20 billion in the previous month. Markets were expecting the nation to post a merchandise (total) trade surplus of ¥70.00 billion.

Japanese exports dropped more than expected in May

In May, exports slid 11.30% on an annual basis in Japan, compared to a drop of 10.10% in the previous month. Markets were expecting exports to fall 10.00%.

Source: Direct Fx broker (Review and Forex Rebates Up to 85%)