Daily Currency Report – This morning, the greenback is trading higher against most of the major currencies, ahead of the much anticipated US Fed interest rate decision, due later today. Investors would also monitor preliminary durable goods orders and pending home sales data, slated to release in a few hours.
The GBP is trading lower against the USD. According to the preliminary estimate, UK’s economy grew more than market expectations in the second quarter of the year, indicating that economic growth in the nation showed resilience in the wake of historic Brexit vote.
The AUD lost ground against the USD, after early morning data indicated that Australia’s annual inflation advanced less than expected, thus prompting the RBA to cut interest rates again when it meets on 02 August.
Yesterday, the greenback traded higher in the New York session, against the key currencies, after data released in the US indicated sustained economic growth, giving room to the US Fed to tighten monetary policy in this year. Data revealed that sentiments among the US consumers declined moderately in July. On the contrary, the nation’s new home sales rebounded on a monthly basis in June, rising at the fastest pace in more than eight years, pointing that the nation’s housing market is regaining momentum. Also, the flash Markit services PMI expanded at a slower pace in July. Moreover, the Richmond Fed manufacturing index unexpectedly advanced in in the same month
EURUSD
This morning at 09:40 GMT, the EUR is trading at 1.1001 against the USD, 0.17% higher from the New York close. On the data front, Germany’s Gfk consumer confidence index declined less than forecasted in August. This morning, the pair traded at a high of 1.1006 and a low of 1.0977. The Euro traded 0.07% lower against the US Dollar in the New York session yesterday, with the pair closing the session at 1.0982. The pair is expected to its find support at 1.0978 and its first resistance at 1.1021.
GBPUSD
At 09:40 GMT, the pair is trading at 1.3104, with the Pound trading 0.25% lower against US Dollar from the New York close. Data revealed that UK’s preliminary estimate of GDP expanded more than expected on a quarterly basis in 2Q 2016. The pair witnessed a high of 1.3161 and a low of 1.3087 during the session. Yesterday, the Pound traded 0.1% higher against the US Dollar in the New York session and ended at 1.3137. Immediate downside, the first support level is seen at 1.3069, while on the upside, the first resistance level is situated at 1.3157.
USDJPY
This morning, at 09:40 GMT, the US Dollar is trading at 105.45 against the Yen, 0.69% higher from the New York close. In economic news, data indicated that Japan’s small business confidence index rose in July. During the session, the pair traded at a high of 106.53 and a low of 104.66. Yesterday, the US Dollar traded 0.35% higher against the Yen in the New York session and ended at 104.73. The pair is expected to its find support at 104.24 and its first resistance at 106.59.
USDCHF
The US Dollar is trading at 0.9929 against the Swiss Franc at 09:40 GMT this morning, marginally higher from the New York close. Macroeconomic data indicated that, Switzerland’s UBS consumption indicator advanced in June. The pair traded at a high of 0.9945 and a low of 0.9905 this morning. Yesterday, the USD traded 0.24% higher against the CHF in the New York session and ended at 0.9924. The pair is expected to its find support at 0.9862 and its first resistance at 0.9970.
USDCAD
The pair is trading at 1.3186 at 09:40 GMT this morning, with the USD trading marginally higher against CAD from the New York close. Amid no economic releases in Canada today, investor sentiment would be governed by global macroeconomic news. The pair traded at a high of 1.3210 and a low of 1.3156 this morning. The US Dollar declined against the Canadian Dollar in the New York session yesterday, closing 0.39% lower at 1.3184. The pair is expected to its find support at 1.3147 and its first resistance at 1.3235.
AUDUSD
The pair is trading at 0.7484 at 09:40 GMT this morning, with the Australian Dollar trading 0.28% lower against US Dollar from the New York close. Early morning data indicated that Australia’s annual consumer price index increased less than anticipated in 2Q 2016. This morning, the pair traded at a high of 0.7564 and a low of 0.7456. The Australian Dollar traded 0.32% lower against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7505. The pair is expected to its find support at 0.7439 and its first resistance at 0.7547.
Gold
Gold is trading at $1328.10 per ounce at 09:40 GMT this morning, 0.08% higher from the New York close. This morning, the precious metal traded at a high of $1328.50 per ounce and a low of $1323.00 per ounce. Yesterday, gold traded 0.11% lower in the New York session and closed at $1327.00 per ounce, with investors remaining cautious ahead of the US Fed policy meeting, due later today, that may shed light on the timing of interest rate hike. Immediate downside, the first support level is seen at $1323.90 per ounce, while on the upside, the first resistance level is at $1331.40 per ounce.
Silver
The precious metal is trading at $19.66 per ounce at 09:40 GMT this morning, 0.23% lower from the New York close. During the session, silver traded at a high of $19.71 per ounce and a low of $19.58 per ounce. In the New York session yesterday, silver rose 0.38% and closed at $19.70 per ounce. Immediate downside, the first support level is seen at $19.57 per ounce, while on the upside, the first resistance level is at $19.76 per ounce.
Oil
The commodity is trading at $42.68 per barrel at 09:40 GMT this morning, 0.07% lower from the New York close. Crude oil witnessed a high of $42.96 per barrel and a low of $42.60 per barrel during the session. In the New York session yesterday, crude oil rose 0.64% to close at $42.71 per barrel, after the API reported that the US crude oil inventories dropped by 827,000 barrels during the week ended 22 July 2016. Immediate downside, the first support level is seen at $42.30 per barrel, while on the upside, the first resistance level is at $43.13 per barrel.
Economic Snapshot
UK GDP rose more than expected in 2Q 2016
On a QoQ basis, the flash gross domestic product (GDP) rose 0.60% in the UK, in 2Q 2016, more than market expectations for a rise of 0.50%. In the previous quarter, GDP had advanced 0.40%.
German import price index fell as expected in June
In June, the import price index in Germany dropped 4.60% on an annual basis, at par with market expectations. The import price index had fallen 5.50% in the prior month.
German consumer confidence index slid in August
Compared to a reading of 10.10 in the previous month the consumer confidence index fell to a level of 10.00 in August, in Germany. Market expectation was for the consumer confidence index to fall to 9.90.
German import price index rose less than expected in June
In June, on a monthly basis, the import price index in Germany advanced 0.50%, lower than market expectations for an advance of 0.60%. The import price index had advanced 0.90% in the previous month.
French consumer confidence declined in July
In July, consumer confidence in France fell to a level of 96.00, at par with market expectations. In the prior month, consumer confidence had registered a level of 97.00.
Swiss UBS consumption indicator recorded a rise in June
In June, UBS consumption indicator in Switzerland recorded a rise to 1.34. In the previous month, UBS consumption indicator had recorded a revised level of 1.24.
Japanese small business confidence index climbed in July
The small business confidence index in Japan advanced to 47.80 in July. In the prior month, the small business confidence index had recorded a level of 46.50.
Australian consumer price index advanced less than expected in 2Q 2016
On a YoY basis, the consumer price index climbed 1.00% in Australia, in 2Q 2016, less than market expectations for an advance of 1.10%. The consumer price index had climbed 1.30% in the prior quarter.
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Tags : Daily Currency Report EUR/USD GBP/USD Gold Silver UK GDP
