Forex Market Update

Forex Market Update – This morning, the greenback is trading lower against most of the major currencies, ahead of the much anticipated speech from the US Fed Chair, Janet Yellen, due in a few hours.

The EUR is trading higher against the USD, after Germany’s GfK consumer confidence unexpectedly advanced in August, notching its highest level since June 2015, indicating that consumers shrugged off uncertainty created by the historic Brexit vote.

The GBP is trading higher against the USD, after UK’s second estimate of GDP showed an expansion of 0.6% on a quarterly basis in the second quarter of 2016, indicating that the nation’s economic growth showed resilience in the run-up to the EU referendum.

The Yen is trading higher against the USD. Overnight data revealed that Japan’s annual inflation fell for the fifth consecutive month in July, urging the BoJ to take additional stimulus measures.

Yesterday, the greenback traded mixed in the New York session, against the key currencies. Data released in the US indicated that, flash durable goods orders rebounded strongly in July, advancing for the first time in three-months. Additionally, initial jobless claims surprisingly fell to its lowest level in five-weeks during the last week, thus pointing towards continuous strength in the nation’s labor market. On the contrary, the flash Markit services PMI data showed that activity in the nation’s service sector surprisingly eased to a six-month low level.

EURUSD

This morning at 09:40 GMT, the EUR is trading at 1.1291 against the USD, a tad higher from the New York close, after Germany’s GfK consumer confidence index surprisingly climbed in September. This morning, the pair traded at a high of 1.1307 and a low of 1.1277. The Euro traded marginally lower against the US Dollar in the New York session yesterday, with the pair closing the session at 1.1288. The pair is expected to its find support at 1.1270 and its first resistance at 1.1309.

GBPUSD

The pair is trading at 1.3202 at 09:40 GMT this morning, with the GBP trading 0.1% higher against USD from the New York close, after UK’s second estimate of GDP rose by 0.6% on a quarterly basis in 2Q 2016, at par with market expectations. The pair traded at a high of 1.3232 and a low of 1.3182 this morning. Yesterday, the Pound traded marginally higher against the US Dollar in the New York session and ended at 1.3189. Immediate downside, the first support level is seen at 1.3167, while on the upside, the first resistance level is situated at 1.3235.

USDJPY

The pair is trading at 100.43 at 09:40 GMT this morning, with the USD trading 0.09% lower against JPY from the New York close. Overnight data indicated that, Japan’s national consumer price index declined by 0.4% on an annual basis in July, in line with market expectations. The pair traded at a high of 100.58 and a low of 100.35 this morning. The USD traded marginally higher against the JPY in the New York session yesterday, with the pair closing the session at 100.52. Immediate downside, the first support level is seen at 100.3100, while on the upside, the first resistance level is situated at 100.5800.

USDCHF

The USD is trading at 0.9659 against the CHF at 09:40 GMT, 0.25% lower from the New York close. Amid no economic releases in Switzerland today, investor sentiment would be governed by global events. During the session, the pair traded at a high of 0.9686 and a low of 0.9644. Yesterday, the US Dollar traded 0.28% higher against the Swiss Franc in the New York session and ended at 0.9683. The pair is expected to its find support at 0.9634 and its first resistance at 0.9686.

USDCAD

The USD is trading at 1.2897 against the CAD at 09:40 GMT, 0.12% lower from the New York close. This morning, the pair traded at a high of 1.2919 and a low of 1.2889. Yesterday, the US Dollar traded 0.08% lower against the Canadian Dollar in the New York session and ended at 1.2913. The pair is expected to its find support at 1.2878 and its first resistance at 1.2928.

AUDUSD

This morning, at 09:40 GMT, the Australian Dollar is trading at 0.7632 against the US Dollar, 0.2% higher from the New York close. With no economic releases in Australia today, trading trends in the AUD are expected to be determined by global macroeconomic factors. The Australian Dollar hit a high of 0.7646 and a low of 0.7610 against the US Dollar this morning. The Australian Dollar advanced against the US Dollar in the New York session yesterday, closing 0.18% higher at 0.7617. Immediate downside, the first support level is seen at 0.7605, while on the upside, the first resistance level is situated at 0.7652.

Gold

This morning, gold is trading at $1328.60 per ounce at 09:40 GMT, 0.26% higher from the New York close. Gold witnessed a high of $1328.70 per ounce and a low of $1323.70 per ounce during the session. Yesterday, gold traded 0.23% higher in the New York session and ended at $1325.20 per ounce, amid weakness in global equities. Immediate downside, the first support level is seen at $1323.50 per ounce, while on the upside, the first resistance level is at $1331.20 per ounce.

Silver

The precious metal is trading at $18.73 per ounce at 09:40 GMT this morning, 0.51% higher from the New York close. Silver hit a high of $18.76 per ounce and a low of $18.60 per ounce this morning. The precious metal advanced in the New York session yesterday, closing 0.11% higher at $18.63 per ounce, tracking gains in gold prices. Immediate downside, the first support level is seen at $18.60 per ounce, while on the upside, the first resistance level is at $18.80 per ounce.

Oil

This morning at 09:40 GMT, the commodity is trading at $47.13 per barrel, 0.44% lower from the New York close. The commodity traded at a high of $47.41 per barrel and a low of $47.01 per barrel this morning. Yesterday, crude oil traded 1.59% higher in the New York session and closed at $47.34 per barrel, following news about the US-Iran military tensions in the Gulf. Immediate downside, the first support level is seen at $46.55 per barrel, while on the upside, the first resistance level is at $47.59 per barrel.

Economic Snapshot

UK GDP rose as expected in 2Q 2016

The second estimate of gross domestic product (GDP) rose 0.60% in the UK on a QoQ basis in 2Q 2016, compared to a rise of 0.40% in the previous quarter. The preliminary figures had also recorded a rise of 0.60%. Market anticipation was for GDP to rise 0.60%.

German consumer confidence index surprisingly climbed in September

In September, the consumer confidence index in Germany rose unexpectedly to a level of 10.20, higher than market expectations of an unchanged reading. The consumer confidence index had registered a reading of 10.00 in the previous month.

Japanese national consumer price index (CPI) fell as expected in July

The national consumer price index (CPI) in Japan fell 0.40% on a YoY basis in July, compared to a similar fall in the prior month. Markets were expecting the national consumer price index (CPI) to ease 0.40%.