Daily Currency Report (2016.03.10)

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

This morning, the greenback is trading higher against most of the major currencies.

The EUR is trading lower against the USD. On the economic front, German trade surplus narrowed unexpectedly in January, indicating that the Eurozone’s largest economy may be feeling the effects of global economic slowdown. Further, the nation’s exports dropped for the second consecutive month during the same period. On the other hand, imports rose more-than-expected on a monthly basis.  Moving ahead, investors will have their eyes set on the ECB interest rate decision, scheduled to be announced in a few hours.

The GBP is trading higher against the USD. Earlier today, UK’s RICS house balance rose in line with investor expectations in February.

The CAD lost ground against the USD. Yesterday, the Bank of Canada (BoC) kept benchmark interest rate steady at 0.50%, in a widely expected move. In a statement accompanying the decision, the central bank remained upbeat about Canada’s near-term economic conditions and added that recent inflationary pressures will likely unwind in the coming months. However, the BoC also expressed concerns that the ongoing commodity-price slump has left the overall business investment in the country “very weak”.

Yesterday, the greenback traded mixed in the New York session, against the key currencies. In the US MBA mortgage applications rebounded in the week ended 04 March 2016.

EURUSD

This morning at 10:40 GMT, the EUR is trading at 1.0986 against the USD, 0.13% lower from the New York close. On the economic front, German trade surplus unexpectedly narrowed in January. This morning, the pair traded at a high of 1.1005 and a low of 1.0960. The Euro traded 0.28% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 1.1000. The pair is expected to its find support at 1.0943 and its first resistance at 1.1033.

GBPUSD

At 10:40 GMT, the pair is trading at 1.4226, with the Pound trading 0.07% higher against US Dollar from the New York close. The pair witnessed a high of 1.4234 and a low of 1.4183 during the session. Yesterday, the Pound traded marginally lower against the US Dollar in the New York session and ended at 1.4216. In economic news, UK’s NIESR GDP estimate recorded a growth of 0.3% during the December-February 2016 period, down from 0.4% in the November-January 2016 period. Immediate downside, the first support level is seen at 1.4192, while on the upside, the first resistance level is situated at 1.4250.

USDJPY

This morning, at 10:40 GMT, the US Dollar is trading at 113.49 against the Yen, 0.12% higher from the New York close. Going ahead, investors will look forward to Japan’s BSI large manufacturing data for Q1 2016, scheduled to release overnight. During the session, the pair traded at a high of 113.82 and a low of 113.15. Yesterday, the US Dollar traded 0.79% higher against the Yen in the New York session and ended at 113.36. The pair is expected to its find support at 112.57 and its first resistance at 114.11.

USDCHF

The US Dollar is trading at 0.9967 against the Swiss Franc at 10:40 GMT this morning, 0.07% lower from the New York close. The pair traded at a high of 0.9997 and a low of 0.9963 this morning. Yesterday, the USD traded 0.29% lower against the CHF in the New York session and ended at 0.9974. The pair is expected to its find support at 0.9925 and its first resistance at 1.0023.

USDCAD

The pair is trading at 1.3276 at 10:40 GMT this morning, with the USD trading 0.21% higher against CAD from the New York close. Going ahead, market participants will look forward to Canada’s new housing price index data for January, due in a few hours. The pair traded at a high of 1.3285 and a low of 1.3237 this morning. The US Dollar declined against the Canadian Dollar in the New York session yesterday, closing 1.15% lower at 1.3248. The pair is expected to its find support at 1.3192 and its first resistance at 1.3395.

AUDUSD

The pair is trading at 0.7479 at 10:40 GMT this morning, with the Australian Dollar trading 0.09% lower against US Dollar from the New York close. In economic news, Australia’s consumer inflation expectations declined in March. Meanwhile, in China, consumer price inflation rose above expectations on an annual basis in February. This morning, the pair traded at a high of 0.7500 and a low of 0.7455. The Australian Dollar traded marginally lower against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7486. The pair is expected to its find support at 0.7446 and its first resistance at 0.7521.

Gold

Gold is trading at $1247.40 per ounce at 10:40 GMT this morning, 0.52% lower from the New York close. This morning, the precious metal traded at a high of $1255.90 per ounce and a low of $1245.70 per ounce. Yesterday, gold traded 0.23% lower in the New York session and closed at $1253.90 per ounce, as a broad rally in global equity markets dented the precious metal’s safe haven appeal. Immediate downside, the first support level is seen at $1240.70 per ounce, while on the upside, the first resistance level is at $1257.00 per ounce.

Silver

The precious metal is trading at $15.29 per ounce at 10:40 GMT this morning, 0.16% lower from the New York close. During the session, silver traded at a high of $15.36 per ounce and a low of $15.24 per ounce. In the New York session yesterday, silver fell 0.29% and closed at $15.31 per ounce, tracking losses in gold prices. Immediate downside, the first support level is seen at $15.18 per ounce, while on the upside, the first resistance level is at $15.42 per ounce.

Oil

The commodity is trading at $37.86 per barrel at 10:40 GMT this morning, 0.84% lower from the New York close. Crude oil witnessed a high of $38.34 per barrel and a low of $37.77 per barrel during the session. In the New York session yesterday, crude oil rose 3.13% to close at $38.18 per barrel, on speculation that the world’s largest oil producers would agree to freeze output. Separately, the Energy Information Administration (EIA) reported that US crude inventories rose by 3.9 million barrels to 521.9 million barrels in the week ended 04 March 2016. Immediate downside, the first support level is seen at $37.03 per barrel, while on the upside, the first resistance level is at $38.60 per barrel.

Economic Snapshot

UK house price balance advanced in February

In February, house price balance registered a rise to 50.00 in the UK, at par with market expectations. In the previous month, house price balance had recorded a revised level of 48.00.

German trade surplus dropped in January

Germany has registered the seasonally adjusted trade surplus of €13.60 billion in January, following a revised trade surplus of €19.00 billion in the previous month. Markets were expecting the nation to record a trade surplus of €17.00 billion.

German imports advanced more-than-expected in January

In Germany, the seasonally adjusted imports advanced 1.20% on a monthly basis in January, higher than market expectations for an advance of 0.80%. In the previous month, imports had fallen 1.60%.

German exports unexpectedly declined in January

On a MoM basis, the seasonally adjusted exports recorded an unexpected drop of 0.50% in January, in Germany, less than market expectations for a rise of 0.80%. In the previous month, exports had recorded a revised drop of 0.70%.

Chinese consumer price index rose more-than-expected in February

In China, the consumer price index climbed 2.30% in February on a YoY basis, higher than market expectations for an advance of 1.80%. In the previous month, the consumer price index had advanced 1.80%.

Chinese producer price index declined as expected in February

On an annual basis, the producer price index in China dropped 4.90% in February, meeting market expectations. In the prior month, the producer price index had recorded a drop of 5.30%.

Australian consumer inflation expectations registered a drop in March

Compared to a reading of 3.60% in the previous month the consumer inflation expectations dropped to 3.40% in Australia, in March.