Daily Currency Report (2016.07.26)

Daily Currency Report – This morning, the greenback is trading lower against most of the major currencies, ahead of the US consumer confidence index, flash Markit services PMI and new home sales data, all slated to release in a few hours. Going forward, the US Federal Reserve’s two-day policy meeting that begins later today will take center stage with investors expecting the central bank to stand pat on monetary policy.

The GBP is trading lower against the USD. In economic news, BBA mortgage approvals data indicated that UK’s banks approved less loans for house purchases in June. Investors would keenly await the release of preliminary estimate of UK’s 2Q GDP data, scheduled tomorrow. Market participants anticipates the economy to grow by 0.5%.

The Yen is trading higher against the USD with investors looking forward to the Bank of Japan’s (BoJ) interest rate decision, due on Friday. Traders expects that the central bank will expand its quantitative easing to encourage inflation and to revive growth in the economy. Meanwhile, Japan’s Finance Minister, Taro Aso, stated that he expects the central bank to continue to do everything in its power to meet its 2.0% inflation target.

Yesterday, the greenback traded lower in the New York session, against the key currencies. Macroeconomic data indicated that, the US Dallas Fed manufacturing business index declined less than anticipated in July, thus showing some signs of improvement.

EURUSD

This morning at 09:40 GMT, the EUR is trading at 1.0984 against the USD, 0.08% higher from the New York close. Moving ahead, investors would focus on Germany’s GfK consumer confidence survey data, due to release tomorrow. This morning, the pair traded at a high of 1.0990 and a low of 1.0950. The Euro traded 0.16% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 1.0991. The pair is expected to its find support at 1.0945 and its first resistance at 1.1027.

GBPUSD

At 09:40 GMT, the pair is trading at 1.3157, with the Pound trading 0.38% higher against US Dollar from the New York close. The pair witnessed a high of 1.3164 and a low of 1.3102 during the session. Yesterday, the Pound traded 0.31% higher against the US Dollar in the New York session and ended at 1.3140. Immediate downside, the first support level is seen at 1.3099, while on the upside, the first resistance level is situated at 1.3192.

USDJPY

This morning, at 09:40 GMT, the US Dollar is trading at 106.31 against the Yen, 0.12% higher from the New York close. Looking ahead, market participants would closely monitor Japan’s small business confidence index for July, scheduled to release tomorrow. During the session, the pair traded at a high of 106.71 and a low of 105.99. Yesterday, the US Dollar traded 0.29% lower against the Yen in the New York session and ended at 105.82. The pair is expected to its find support at 105.80 and its first resistance at 106.76.

USDCHF

The US Dollar is trading at 0.9856 against the Swiss Franc at 09:40 GMT this morning, 0.12% lower from the New York close. Going ahead, investors would await the release of Switzerland’s UBS consumption indicator for June, slated to release tomorrow. The pair traded at a high of 0.9894 and a low of 0.9849 this morning. Yesterday, the USD traded marginally lower against the CHF in the New York session and ended at 0.9864. The pair is expected to its find support at 0.9833 and its first resistance at 0.9887.

USDCAD

The pair is trading at 1.3169 at 09:40 GMT this morning, with the USD trading 0.28% higher against CAD from the New York close. The pair traded at a high of 1.3171 and a low of 1.3121 this morning. The US Dollar advanced against the Canadian Dollar in the New York session yesterday, closing 0.08% higher at 1.3217. The pair is expected to its find support at 1.3086 and its first resistance at 1.3218.

AUDUSD

The pair is trading at 0.7481 at 09:40 GMT this morning, with the Australian Dollar trading 0.2% higher against US Dollar from the New York close. Amid no economic releases in Australia today, investor sentiment would be governed by global macroeconomic news. This morning, the pair traded at a high of 0.7492 and a low of 0.7452. The Australian Dollar traded marginally higher against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7467. The pair is expected to its find support at 0.7449 and its first resistance at 0.7502.

Gold

Gold is trading at $1322.70 per ounce at 09:40 GMT this morning, 0.56% lower from the New York close. This morning, the precious metal traded at a high of $1331.20 per ounce and a low of $1321.20 per ounce. Yesterday, gold traded 0.13% lower in the New York session and closed at $1322.90 per ounce, amid mounting speculation that the US Fed would raise interest rates this year, dented the demand for the precious yellow metal. Immediate downside, the first support level is seen at $1317.77 per ounce, while on the upside, the first resistance level is at $1331.07 per ounce.

Silver

The precious metal is trading at $19.49 per ounce at 09:40 GMT this morning, 1.02% lower from the New York close. During the session, silver traded at a high of $19.69 per ounce and a low of $19.41 per ounce. In the New York session yesterday, silver rose 0.46% and closed at $19.61 per ounce. Immediate downside, the first support level is seen at $19.32 per ounce, while on the upside, the first resistance level is at $19.76 per ounce.

Oil

The commodity is trading at $43.87 per barrel at 09:40 GMT this morning, 0.88% lower from the New York close. Crude oil witnessed a high of $44.37 per barrel and a low of $43.82 per barrel during the session. In the New York session yesterday, crude oil fell 1.06% to close at $43.05 per barrel, amid ongoing concerns about global crude glut. Immediate downside, the first support level is seen at $43.42 per barrel, while on the upside, the first resistance level is at $44.65 per barrel.

Economic Snapshot

UK BBA mortgage approvals fell in June

BBA mortgage approvals registered a drop to 40.10 K in the UK, in June, compared to a revised reading of 41.84 K in the previous month. Market anticipation was for BBA mortgage approvals to fall to 39.65 K.

Spanish producer price index declined in June

The producer price index recorded a drop of 4.70% in Spain on a YoY basis, in June. In the prior month, the producer price index had fallen by a revised 5.60%.

Spanish producer price index recorded a rise in June

The producer price index rose 1.80% in Spain on a MoM basis, in June. In the prior month, the producer price index had climbed 0.80%.

Japanese corporate service price index rose more than expected in June

On a YoY basis, in June, the corporate service price index advanced 0.20% in Japan, higher than market expectations for an advance of 0.10%. In the previous month, the corporate service price index had registered a similar rise.

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