Daily Market Reports

PDF-Direct FX_Daily Currency Report 15th May 2012
Forex Market Update
This morning, the greenback is trading mixed against most of the major currencies.
The Euro edged higher this morning, finding support from better-than-expected German economic growth data. The gains were however capped, as investors stay cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than a week-long political stalemate fuelled fears over the country’s possible exit from the Euro-zone.
Markets were also jittery after Moody’s Investors Service yesterday announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
Meanwhile, data released today morning indicated that French economy stagnated in the first three months of 2012, underscoring concerns over weak growth in the Euro-zone’s second largest economy. Additionally, the Italian economy fell into a deeper recession in the first quarter, after preliminary data from the statistical office, Istat indicated that gross domestic product dropped 0.8% (QoQ), following a 0.7% fall in the fourth quarter.
Data just out revealed that German economic sentiment for May deteriorated significantly more-than-expected, declining for the first time in six months.
In bond auction, Athens-based Public Debt Management Agency sold €1.3 billion of 13-week treasury bills at a yield of 4.34%, from a yield of 4.2% at a similar auction on April 17.
The greenback traded higher in the New York session on Friday against the key currencies.

EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.2844 against the USD, 0.17% higher from the New York close, after the economic data revealed that German economy grew more-than-forecasted in the first quarter of 2012. The Federal Statistics Office reported that gross domestic product (GDP) in Germany rose 0.5% in first quarter of 2012, from 0.2% contraction in last quarter of 2011. Economists predicted a 0.1% gain. Meanwhile, French GDP stagnated. During the session, the pair traded at a high of 1.2869 and a low of 1.2814. Yesterday, the EUR weakened against the USD by 0.18% in the New York session, and closed at 1.2823.

The pair is expected to find its first support at 1.2813 and first resistance at 1.2876.

GBP USD
At 09:40 GMT, the GBP is trading at 1.6070 against the USD, 0.16% lower from the New York close. Data released this morning, revealed that UK’s goods trade deficit was almost flat in March. The UK Office for National Statistics reported that nation’s goods trade deficit inched down to £8.56 billion in March, from £8.59 billion in February. Economists had expected the goods trade deficit to narrow to £8.40 billion. During the session, the pair traded at a high of 1.6114 and a low of 1.6063. Yesterday, the British Pound rose 0.14% versus the Dollar in the New York session, and closed at 1.6095.

The pair is expected to find its first support at 1.6045 and first resistance at 1.6109.

USD JPY
The USD is trading at 79.90 against the JPY at 09:40 GMT this morning, 0.08% higher from the New York close. On the economic front, Japanese consumer confidence dropped unexpectedly in April. The consumer sentiment index fell to a reading of 40.0, from 40.3 in March. Economists were forecasting the index to rise to a reading of 40.8. During the session, the pair traded at a high of 79.95 and a low of 79.81. In the New York session yesterday, USD rose 0.08% against JPY, and closed at 79.84.

The pair is expected to find its first support at 79.69 and first resistance at 80.09.

USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9351 against the Swiss Franc, 0.18% lower from the New York close. During the session, the pair traded at a high of 0.9373 and a low of 0.9334. In the New York session yesterday, USD rose 0.20% against the CHF, and closed at 0.9367.

The pair is expected to find its first support at 0.9327 and first resistance at 0.9374.

USD CAD
At 09:40 GMT, the USD is trading at 1.0019 against the CAD, 0.15% lower from the New York close. During the session, the pair traded at a high of 1.0039 and a low of 0.9995. Yesterday, the USD fell 0.06% against the CAD in the New York session, and closed at 1.0033.

The pair is expected to find its first support at 0.9991 and first resistance at 1.0049.

AUD USD
The AUD is trading at 0.9992 against the USD, at 09:40 GMT this morning, 0.34% higher from the New York close, as risk appetite improved after data revealed a better-than-expected German GDP growth for the first quarter of 2012. Meanwhile, the minutes from the Reserve Bank of Australia’s May 1 meeting revealed that risks emanating from Europe continue to cloud the global outlook. The minutes further highlighted that the interest rate cut was undertaken at the last meeting to counter rising mortgage costs and shore up consumer confidence. During the session, the pair traded at a high of 1.0015 and a low of 0.9946. AUD fell 0.20% against USD in the New York session yesterday, and closed at 0.9958.

The pair is expected to find its first support at 0.9953 and first resistance at 1.0023.

Gold
At 09:40 GMT, Gold is trading at $1557.77 per ounce, 0.05% higher from the New York close, edging back towards a crucial level of $1,560 per ounce, after a positive reading of German growth lifted the Euro versus the greenback, and amid bargain hunting. This morning, Gold traded at a high of $1560.41 and a low of $1548.15 per ounce. In the New York session yesterday, the yellow metal declined 0.18%, and closed at $1556.99.

Gold has its first support at $1548.68 and first resistance at $1566.34.

Silver
Silver is trading at $28.26 per ounce, 0.34% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $28.38 and a low of $27.94. Silver weakened 1.02% against USD in the New York session yesterday, and closed at $28.16.

Silver has its first support at $27.94 and first resistance at $28.59.

Crude Oil
At 09:40 GMT, Oil is trading at $94.40 per barrel, 0.30% higher from the New York close. Investors await the oil inventory reports later today and tomorrow to offer guidance to oil prices. This morning, Oil traded at a high of $95.04 and a low of $94.01. Yesterday, Oil rose 0.17% against USD in the New York session, and closed at $94.08.

It has its first support at $93.88 and first resistance at $95.11.

Economic Snapshot

UK goods trade deficit remained almost unchanged in March
On a seasonally adjusted basis, the goods trade deficit in the UK inched down to £8.56 billion in March, from £8.59 billion in February. Market had expected the goods trade deficit to narrow to £8.40 billion in March.

Euro-zone GDP remained flat in 1QFY2012
The gross domestic product (GDP) in Euro-zone remained flat in the first quarter of 2012, compared to 0.3% contraction in the previous quarter. Market had expected 0.2% contraction in first quarter of 2012.

Euro-zone ZEW survey – economic sentiment index dropped in May
The ZEW survey – economic sentiment index in Euro-zone dropped to a reading of -2.4 in May, compared to a reading of 13.1 posted in previous month. Market had expected the index to drop to a reading of 11.7 in May.

German ZEW survey for current situation index rose in May
The ZEW survey – current situation index in Germany rose to a reading of 44.1 in May, compared to a reading of 40.7 in April, above market expectations of a drop to 39.0 in May. Additionally, the economic sentiment index in Germany dropped to a reading of 10.8 in May, compared to a reading of 23.4 in April. Market had expected the index to drop to 19.0 in May.

German GDP expanded more-than-expected in Q1FY2012
On a seasonally adjusted basis, the gross domestic product (GDP) in Germany rose 0.5% for first three months of 2012, compared to 0.2% contraction in the fourth quarter of 2011. Market had expected 0.1% growth for first three months of 2012.

French CPI rose less-than-expected in April
On a monthly basis, the consumer price index (CPI) in France rose 0.1% in April, compared to a 0.8% rise in March. Market had expected a 0.2% rise in April.

French GDP flat in 1QFY2012
The gross domestic product (GDP) in France remained flat in first quarter of 2012, in line with market expectations, compared to downwardly revised 0.1% growth in the previous quarter.

Japanese consumer confidence index declined unexpectedly in April
The consumer confidence index in Japan fell to a reading of 40.0 in April, compared to a reading of 40.3 in March. Market had expected the index to rise to 40.8.

May 14 2012

PDF-Direct FX_Daily Currency Report 14 May 2012
Forex Market Update
This morning, the greenback is trading higher against most of the major currencies, amid concerns over the possibility of a Greek exit from the Euro-zone.
The Euro is trading lower, as European policymakers begin to weigh the prospect of Greece withdrawing from the Euro-zone, ahead of Greek President, Karolos Papoulias’s meeting with party leaders today.
Highlighting escalating concerns about the country’s ailing financial sector, Moody’s Investors Service has warned that Spanish banks would remain vulnerable to rising loan delinquencies even after they set aside €30 billion in newly announced real-estate loss provisions.
Intensifying concerns further, industrial production in the Euro-zone fell unexpectedly in March, adding to concerns over the health of the region’s economy.
In bond auction, Spain sold €2.9 billion in short-term debt, amid strong demand but with higher yields. Meanwhile, Italy raised a total of €5.25 billion, with its three-year benchmark at an average 3.91% yield, the highest since January.
Over the weekend, the People’s Bank of China stated that reserve ratios would fall 50 basis points, effective May 18.
The greenback traded higher in the New York session on Friday against the key currencies.

EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.2871 against the USD, 0.36% lower from the New York close, amid ongoing concerns over political turmoil in Greece and a potential Greek exit from the Euro-zone. In economic news, industrial production in the Euro-zone retreated 0.3% (MoM) in March, while German wholesale price index rose 0.5% (MoM) in April. During the session, the pair traded at a high of 1.2905 and a low of 1.2861. On Friday, the EUR weakened against the USD by 0.06% in the New York session, and closed at 1.2917.

The pair is expected to find its first support at 1.2836 and first resistance at 1.2932.

GBP USD
At 09:40 GMT, the GBP is trading at 1.6070 against the USD, marginally higher from the New York close. During the session, the pair traded at a high of 1.6085 and a low of 1.6052. On Friday, the British Pound fell 0.05% versus the Dollar in the New York session, and closed at 1.6068.

The pair is expected to find its first support at 1.6042 and first resistance at 1.6106.

USD JPY
The USD is trading at 80.02 against the JPY at 09:40 GMT this morning, 0.10% higher from the New York close. This morning, in Japan, domestic corporate goods price index fell 0.2% (YoY) in April, compared to the rise of 0.5% in March and against the market expectation of 0.3% drop. During the session, the pair traded at a high of 80.19 and a low of 79.90. In the New York session on Friday, USD rose 0.09% against JPY, and closed at 79.94.

The pair is expected to find its first support at 79.82 and first resistance at 80.20.

USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9331 against the Swiss Franc, 0.34% higher from the New York close. In Switzerland, producer prices fell 0.1% in April, declining for the first time in five months and against the market expectations for a 0.2% rise. During the session, the pair traded at a high of 0.9338 and a low of 0.9309. In the New York session on Friday, USD rose 0.06% against the CHF, and closed at 0.9299.

The pair is expected to find its first support at 0.9289 and first resistance at 0.9356.

USD CAD
At 09:40 GMT, the USD is trading at 1.0030 against the CAD, 0.24% higher from the New York close, as risk aversion increased amid ongoing concerns over the outcome of Greece’s political turmoil and a potential Greek exit from the Euro-zone. During the session, the pair traded at a high of 1.0049 and a low of 0.9992. On Friday, the USD rose 0.17% against the CAD in the New York session, and closed at 1.0007.

The pair is expected to find its first support at 0.9971 and first resistance at 1.0072.

AUD USD
The AUD is trading at 0.9979 against the USD, at 09:40 GMT this morning, 0.41% lower from the New York close, as concerns over political deadlock in Greece, reduced the demand for high yielding assets. Data released this morning showed that home loans in Australia rose unexpectedly in March, adding 0.3% after a 2.5% decline the previous month. During the session, the pair traded at a high of 1.0035 and a low of 0.9963. AUD fell 0.10% against USD in the New York session on Friday, and closed at 1.0020, after series of disappointing economic data from China, Australia’s biggest trading partner, weighed on investor sentiment.

The pair is expected to find its first support at 0.9936 and first resistance at 1.0050.

Gold
At 09:40 GMT, Gold is trading at $1562.24 per ounce, 1.07% lower from the New York close, as the dollar strengthened, amid continued uncertainty in the Euro-zone. This morning, Gold traded at a high of $1585.83 and a low of $1559.83 per ounce. In the New York session on Friday, the yellow metal declined 0.24%, and closed at $1579.20.

Gold has its first support at $1551.11 and first resistance at $1582.09.

Silver
Silver is trading at $28.43 per ounce, 1.62% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $29.01 and a low of $28.29. Silver strengthened 0.87% against USD in the New York session on Friday, and closed at $28.90.

Silver has its first support at $28.10 and first resistance at $28.94.

Crude Oil
At 09:40 GMT, Oil is trading at $94.27 per barrel, 1.40% lower from the New York close, amid concerns over Europe’s debt crisis and comments from Saudi Arabia’s oil minister. The Saudi Arabian Oil Minister, Ali al-Naimi stated that the price of Brent should fall to around $100 per barrel as current oil supply outweighs demand, adding that consumption may rebound in the second half of 2012. This morning, Oil traded at a high of $95.79 and a low of $93.65. On Friday, Oil fell 0.06% against USD in the New York session, and closed at $95.64.

It has its first support at $92.79 and first resistance at $96.34.

Economic Snapshot

German wholesale price inflation increased in April
On a monthly basis, the wholesale price index in Germany rose 0.5% in April, compared to a 0.9% rise in March. Meanwhile, on an annual basis, the wholesale price index advanced 2.4% in April from 2.2% in March.

French current account gap narrowed in March
In France, the current account deficit narrowed to €4.1 billion in March, from a revised deficit of €5.3 billion in February.

Euro-zone industrial output dropped in March
On a monthly basis, industrial production in the Euro-zone retreated 0.3% in March, against market forecast for a 0.4% rise and compared to a revised 0.8% rise in February.

Swiss producer and import prices decline unexpectedly in April
On a month-on-month basis, the producer and import price index in Switzerland fell 0.1% in April, compared to a 0.3% rise in March. Market had expected a 0.2% rise.

May 8 2012

PDF-Direct FX_Daily Currency Report 8th May 2012
Forex Market Update
This morning, the greenback is trading higher against most of the major currencies.
Investors remain wary after weekend election results in Greece and France raised doubts over Europe’s ability to implement austerity measures to tackle the debt crisis in the region.
The Euro is trading on a weaker footing against the majors, as Greece’s political leaders meet for a second day in a bid to form a new government, raising fears that the country would not be able to secure its next tranche of international aid due in June, if government is not formed in time.
Additionally, market participants speculated that the newly elected President, Francois Hollande’s focus on growth measures could create tensions with Germany’s insistence on fiscal austerity. Meanwhile, results of local elections in Italy on Monday also showed a public backlash against austerity measures.
Greece debt agency, PDMA, sold €1.3 billion ($1.69 billion) of six-month T-bills at an auction today, with yield rising to 4.69%, from 4.55% at the previous auction on April 10.
The Australian Dollar came under pressure, after data released today morning indicated that Australia’s trade deficit more than doubled in March
The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3007 against the USD, 0.39% lower from the New York close, as concerns over the debt crisis in the Euro-zone rose after weekend elections in Greece and France sparked fears that recent austerity plans would be abandoned. With a light economic calendar this session, market participants await the release of German factory output data which is expected to grow 0.8% (MoM) in March, after declining 1.3% in February. During the session, the pair traded at a high of 1.3066 and a low of 1.3005. Yesterday, the EUR weakened against the USD by 0.49% in the New York session, and closed at 1.3058.

The pair is expected to find its first support at 1.2986 and first resistance at 1.3047.

GBP USD
At 09:40 GMT, the GBP is trading at 1.6130 against the USD, 0.40% lower from the New York close, after house prices fell to a six-month low in April. The Royal Institution of Chartered Surveyors (RICS) house price balance index in the UK fell to a reading of -19.0 in April, compared to a downwardly revised reading of -11.0 in March. During the session, the pair traded at a high of 1.6199 and a low of 1.6125. Yesterday, the British Pound fell 0.21% versus the Dollar in the New York session, and closed at 1.6195.

The pair is expected to find its first support at 1.6104 and first resistance at 1.6178.

USD JPY
The USD is trading at 79.79 against the JPY at 09:40 GMT this morning, 0.14% lower from the New York close. Japanese Finance Minister, Jun Azumi has warned against speculative yen gains after the European election results and stated that the government is ready to act if needed. During the session, the pair traded at a high of 80.08 and a low of 79.79. In the New York session yesterday, USD fell 0.24% against JPY, and closed at 79.90.

The pair is expected to find its first support at 79.69 and first resistance at 79.99.

USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9235 against the Swiss Franc, 0.38% higher from the New York close. During the session, the pair traded at a high of 0.9237 and a low of 0.9196. In the New York session yesterday, USD rose 0.49% against the CHF, and closed at 0.9201. In Switzerland, unemployment rate rose to 3.1% in April, while consumer price index declined 1.0% (YoY) in April.

The pair is expected to find its first support at 0.9208 and first resistance at 0.9249.

USD CAD
At 09:40 GMT, the USD is trading at 0.9978 against the CAD, 0.50% higher from the New York close. Loonie is likely to receive increased market attention, with Canadian housing starts data due to be released later today. During the session, the pair traded at a high of 0.9978 and a low of 0.9924. Yesterday, USD rose 0.59% against CAD in the New York session, and closed at 0.9929.

The pair is expected to find its first support at 0.9942 and first resistance at 0.9996.

AUD USD
The AUD is trading at 1.0129 against the USD, at 09:40 GMT this morning, 0.73% lower from the New York close, after Australia registered a wider-than-expected trade deficit for March of A$1.59 billion, up from A$0.75 billion in February. The Australian federal government’s fiscal budget announcement in the day ahead, is likely to set the tone for the Australian Dollar against the major currencies in today’s trading session. During the session, the pair traded at a high of 1.0218 and a low of 1.0129. AUD fell 0.41% against USD in the New York session yesterday, and closed at 1.0204.

The pair is expected to find its first support at 1.0099 and first resistance at 1.0190.

Gold
At 09:40 GMT, Gold is trading at $1626.46 per ounce, 0.74% lower from the New York close, as the greenback strengthened. However, losses in precious metal were capped, amid indications of strong physical demand in China and India. According to a report, China’s gold imports from Hong Kong surged more than six-fold in the first quarter of 2012. Additionally, India’s Finance Minister, Pranab Mukherjee stated yesterday that the country would withdraw an excise duty on all jewellery, boosting prospects for the country’s gold demand this year. This morning, Gold traded at a high of $1639.21 and a low of $1625.53 per ounce. In the New York session yesterday, the yellow metal rose 0.38%, and closed at $1638.60.

Gold has its first support at $1620.39 and first resistance at $1637.66.

Silver
Silver is trading at $29.61 per ounce, 1.59% lower from the New York close, at 09:40 GMT this morning, as the greenback strengthened. This morning, Silver traded at a high of $30.13 and a low of $29.60. Silver strengthened 1.09% against USD in the New York session yesterday, and closed at $30.08.

Silver has its first support at $29.34 and first resistance at $30.13.

Crude Oil
At 09:40 GMT, Oil is trading at $96.80 per barrel, 1.20% lower from the New York close, as global economic slowdown mounted fears of lower oil demand. Prices came under further pressure after Saudi Arabian Oil Minister, Ali al-Naimi stated that the country was pumping around 10 million barrels per day (bpd), and was storing 80 million barrels in case of any disruption in supplies. This morning, Oil traded at a high of $98.12 and a low of $96.75. Yesterday, Oil fell 1.87% against USD in the New York session, and closed at $97.98.

It has its first support at $96.09 and first resistance at $97.85.

Economic Snapshot

UK house prices fell further in April, indicates RICS
The Royal Institution of Chartered Surveyors (RICS) reported that the house price balance index in the UK fell to a reading of -19.0 in April, compared to a downwardly revised reading of -11.0 posted in March.

UK shop price inflation eased in April, indicates BRC
The British Retail Consortium (BRC) and Nielsen reported that the overall shop price index in the UK rose 1.3% in April, compared to a 1.5% increase recorded in March. Market had expected the index to rise 0.6% (MoM) in April.

Australian trade deficit widens in March
According to the Australian Bureau of Statistics, the Australian trade balance in March stood at a deficit of A$1.59 billion, compared to an upwardly revised deficit of A$0.75 billion in February. On a monthly basis, exports rose 2.0% to A$24.52 billion, while imports jumped 5.0% to A$26.11 billion.
May 3 2012

PDF-Direct FX_Daily Currency Report 3rd May 2012
Forex Market Update
This morning, the greenback has strengthened against most of the major currencies.
The Euro weakened against the US Dollar, after the recent batch of disappointing economic data from both sides of the Atlantic rekindled concerns about the strength of global growth.
Meanwhile, French borrowing costs fell in a bond auction that sold €7.4 billion ($9.7 billion) in long-term debt. Additionally, the Spanish government auctioned a total of €2.52 billion ($3.31 billion) of bonds, exceeding its target range of €1.5 billion to 2.5 billion, but saw borrowing costs rise.
The Pound is trading weaker this morning, after mortgage lender, Nationwide reported that house prices in the UK fell unexpectedly in April and further cautioned that the prices would remain flattish over the next 12 months. Additionally, service sector PMI in the UK expanded at a slower rate than expected in April, falling to the lowest level since November.
Meanwhile, a report from the UBS Bank indicated that Switzerland’s real estate bubble index rose for a third consecutive quarter in the first three months of 2012, placing the index “just outside the risk zone”.
This morning, China’s non-manufacturing PMI fell to a reading of 56.1 in April compared to a reading of 58.0 recorded in March.
The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3137 against the USD, 0.12% lower from the New York close, as investors await the outcome of a European Central Bank meeting later in the day, following weak Euro-zone economic data yesterday. Meanwhile, ECB President, Mario Draghi’s post-meeting press conference is expected to be closely tracked, especially after his cautious comments on the economic outlook last week. During the session, the pair traded at a high of 1.3163 and a low of 1.3123. Yesterday, the EUR strengthened against the USD by 0.16% in the New York session, and closed at 1.3153.

The pair is expected to find its firsts support at 1.3117 and first resistance at 1.3163.

GBP USD
At 09:40 GMT, the GBP is trading at 1.6181 against the USD, 0.10% lower from the New York close, after Nationwide earlier today indicated an unexpected monthly fall in UK home prices, while Lloyds business barometer survey pointed towards weaker business sentiment. Additionally, data just released showed that the pace of expansion in the UK services sector slowed in April. During the session, the pair traded at a high of 1.6199 and a low of 1.6162. Yesterday, the British Pound rose 0.18% versus the Dollar in the New York session, and closed at 1.6198.

The pair is expected to find its first support at 1.6158 and first resistance at 1.6207.

USD JPY
The USD is trading at 80.37 against the JPY at 09:40 GMT this morning, 0.30% higher from the New York close. During the session, the pair traded at a high of 80.40 and a low of 80.10. In the New York session yesterday, USD fell 0.05% against JPY, and closed at 80.14.

The pair is expected to find its first support at 80.15 and first resistance at 80.50.

USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9145 against the Swiss Franc, 0.11% higher from the New York close. In Switzerland, the UBS Real Estate Bubble Index rose to a reading of 0.95 in the first quarter of 2012, up by 0.15 index points since the fourth quarter of 2011. During the session, the pair traded at a high of 0.9155 and a low of 0.9127. In the New York session yesterday, USD fell 0.17% against the CHF, and closed at 0.9135.

The pair is expected to find its first support at 0.9127 and first resistance at 0.9160.

USD CAD
At 09:40 GMT, the USD is trading at 0.9838 against the CAD, 0.29% lower from the New York close. During the session, the pair traded at a high of 0.9870 and a low of 0.9838. Yesterday, USD fell 0.23% against CAD in the New York session, and closed at 0.9867.

The pair is expected to find its first support at 0.9816 and first resistance at 0.9882.

AUD USD
The AUD is trading at 1.0282 against the USD, at 09:40 GMT this morning, 0.37% lower from the New York close, after AiG performance of services index in Australia fell to 39.6 in April, compared to 47.0 in previous month. The Aussie also came under pressure, after non-manufacturing PMI in nation’s biggest trading partner, China, fell to a reading of 56.1 in April, compared to 58.0 in March. During the session, the pair traded at a high of 1.0325 and a low of 1.0271. AUD rose 0.11% against USD in the New York session yesterday, and closed at 1.0321.

The pair is expected to find its first support at 1.0256 and first resistance at 1.0323.

Gold
At 09:40 GMT, Gold is trading at $1644.82 per ounce, 0.50% lower from the New York close, as the greenback strengthened. This morning, Gold traded at a high of $1653.81 and a low of $1641.27 per ounce. In the New York session yesterday, the yellow metal declined 0.05%, and closed at $1653.09.

Gold has its first support at $1637.39 and first resistance at $1656.12.

Silver
Silver is trading at $30.43 per ounce, 0.65% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $30.93 and a low of $30.35. Silver strengthened 0.28% against USD in the New York session yesterday, and closed at $30.63.

Silver has its first support at $30.22 and first resistance at $30.79.

Crude Oil
At 09:40 GMT, Oil is trading at $104.79 per barrel, 0.50% lower from the New York close, as bigger-than-expected surge in the US crude oil stockpiles weighed on oil prices. Yesterday, the Energy Information Administration indicated that crude-oil inventories rose by 2.8 million barrels to 375.9 million barrels in the week ended April 27. Meanwhile, the head of Organization of Petroleum Exporting Countries (OPEC), Abdalla Salem el-Badri, stated that he remains worried about uncertain global economic growth, as oil market concerns shift from supply to demand. This morning, Oil traded at a high of $105.41 and a low of $104.66. Yesterday, Oil fell 0.41% against USD in the New York session, and closed at $105.36.

It has its first support at $104.33 and first resistance at $105.58.

Economic Snapshot

House Prices in the UK fell unexpectedly in April: Nationwide
On a seasonally adjusted monthly basis, house prices in the UK fell 0.2% in April, following a 1.0% decline in March. Analysts had expected prices to rise 0.5%.

UK official reserves rise in April
The official reserves in the UK increased by $447.0 million in April, following a decline of $1132.0 million in March.

UK services PMI drops to four month low in April
In the UK, services PMI retreated to a reading of 53.3 in April compared to a reading of 55.3 recorded in March. Analysts had expected the index to decline by 0.7 points to 54.6 in April.

Euro-zone producer price index rises in March
Year-on-Year, the producer price index in the Euro-zone rose at an annualized rate of 3.3% in March, lower than expectations for a 3.4% gain, after climbing at a rate of 3.6% in February.

Swiss UBS real estate bubble index advanced for a third consecutive quarter
In Switzerland, the UBS Real Estate Bubble Index rose to a reading of 0.95 in the Q1 FY2012, compared to a reading of 0.80 in the Q4 FY2011.

PDF-Direct FX_Daily Currency Report 30th April 2012
Forex Market Update
This morning, the greenback is trading higher against most of the major currencies, reversing its Friday’s losses, following disappointing US GDP data.
On Friday, the US Commerce Department reported that the US economy expanded 2.2% in the first quarter, missing market expectations for 2.5% growth. The sluggish growth figures offset the Thomson Reuters/University of Michigan’s consumer sentiment index reading of 76.4 for April, which beat expectations for a 75.7 reading.
The Euro came under pressure, after data released this morning indicated that the Spanish economy returned to recession in the first quarter of 2012. Additionally, retail sales in Germany rose 0.8% in March, lower than the 1.1% rise expected by analysts.
Additionally, rating downgrades of 16 Spanish banks today morning by Standard & Poor’s Ratings Services also spooked investor sentiment.
Despite concerns over the weak state of the UK economy, the Pound rose marginally this morning, after house prices in the UK, surprised on the upside earlier today.
Meanwhile, the British Prime Minister, David Cameron, cautioned yesterday that the downward spiral in the UK economy would continue for years and partly blamed the Euro-zone crisis for dragging the nation into a double-dip recession.
The greenback traded mostly lower in the New York session on Friday against the key currencies.

EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3228 against the USD, 0.20% lower from the New York close, after Spain’s economy contracted in the first three months of 2012, shrinking for the second consecutive quarter and slipping back into a recession. In a preliminary report, Spain’s Statistical Office indicated that the nation’s gross domestic product contracted by a seasonally adjusted 0.3% in the first quarter of 2012, compared to expectations for a 0.4% decline. During the session, the pair traded at a high of 1.3267 and a low of 1.3226. On Friday, the EUR marginally weakened against the USD in the New York session, and closed at 1.3254.

The pair is expected to find its first support at 1.3208 and first resistance at 1.3260.

GBP USD
At 09:40 GMT, the GBP is trading at 1.6271 against the USD, marginally higher from the New York close, following a survey by Hometrack which indicated that house prices in the UK climbed for the second consecutive month in April. During the session, the pair traded at a high of 1.6302 and a low of 1.6265. On Friday, the British Pound rose 0.11% versus the Dollar in the New York session, and closed at 1.6266.

The pair is expected to find its first support at 1.6222 and first resistance at 1.6311.

USD JPY
The USD is trading at 80.19 against the JPY at 09:40 GMT this morning, 0.10% lower from the New York close. Trading volumes were low today on account of a national holiday in Japan. During the session, the pair traded at a high of 80.39 and a low of 80.08. In the New York session on Friday, USD fell 0.37% against JPY, and closed at 80.27.

The pair is expected to find its first support at 79.93 and first resistance at 80.60.

USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9084 against the Swiss Franc, 0.21% higher from the New York close. During the session, the pair traded at a high of 0.9086 and a low of 0.9056. In the New York session on Friday, USD rose 0.05% against the CHF, and closed at 0.9065.

The pair is expected to find its first support at 0.9061 and first resistance at 0.9098.

USD CAD
At 09:40 GMT, the USD is trading at 0.9820 against the CAD, 0.15% higher from the New York close. During the session, the pair traded at a high of 0.9821 and a low of 0.9804. On Friday, USD fell 0.12% against CAD in the New York session, and closed at 0.9805.

The pair is expected to find its first support at 0.9798 and first resistance at 0.9843.

AUD USD
The AUD is trading at 1.0432 against the USD, at 09:40 GMT this morning, 0.37% lower from the New York close, after new home sales in Australia tumbled to their lowest level in over 10 years in March, raising speculation for reduction in interest rate by the Reserve Bank of Australia, in its policy meeting tomorrow. In another set of data released this morning in Australia, private sector credit rose 0.4% (MoM) in March, unchanged from the previous month. Additionally the TD securities inflation in Australia rose 0.3% (MoM) in April. During the session, the pair traded at a high of 1.047 and a low of 1.0431. AUD rose 0.28% against USD in the New York session on Friday, and closed at 1.0472.

The pair is expected to find its first support at 1.0398 and first resistance at 1.0471.

Gold
At 09:40 GMT, Gold is trading at $1662.66 per ounce, almost unchanged from the New York close, as the greenback strengthened. This morning, Gold traded at a high of $1665.83 and a low of $1661.20 per ounce. In the New York session on Friday, the yellow metal declined marginally and closed at $1662.80.

Gold has its first support at $1654.56 and first resistance at $1669.23.

Silver
Silver is trading at $31.24 per ounce, 0.14% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $31.41 and a low of $31.20. Silver strengthened marginally against USD in the New York session on Friday, and closed at $31.28.

Silver has its first support at $31.02 and first resistance at $31.44.

Crude Oil
At 09:40 GMT, Oil is trading at $104.40 per barrel, 0.40% lower from the New York close, as investors fretted over faltering growth in the US, after Friday’s data indicated that economic growth in the US slowed sharply in the first quarter of 2012, rekindling concerns that the nascent recovery in the US was losing steam. Additionally, political and economic uncertainty in the Euro-zone further weighed on oil prices. This morning, Oil traded at a high of $105.04 and a low of $104.32. On Friday, Oil rose 0.36% against USD in the New York session, and closed at $104.81.

It has its first support at $103.94 and first resistance at $104.95.

Economic Snapshot

German retail sales rose in March
On a seasonally adjusted basis, retail sales in Germany climbed a lower-than-expected 0.8% (MoM), compared to a revised 0.9% decline in February.

Euro-zone M3 money supply grows in March
The European Central Bank reported that M3 money supply in the Euro-zone climbed 3.2% (YoY) in March, compared to a 2.8% growth recorded in February. Meanwhile, the three-month average of the annual growth rates of M3 during January to March rose to 2.8%, from 2.3% in December to February period.

Euro-zone Consumer Price Index declined in April
On an annual basis, the Consumer Price Index in the Euro-zone retreated to 2.6% in April, from 2.7% in March.

Spain Q1 GDP contracts
Spanish statistical office, Ine reported that the gross domestic product in Spain contracted 0.3% (QoQ) in the first quarter of 2012, compared to 0.4% decline estimated by the central bank last week.

PDF-Direct FX_Daily Currency Report 25th April 2012
Forex Market Update
This morning, the greenback is trading lower against the major currencies, ahead of a much awaited Federal Reserve policy statement and amid a news conference from the central bank’s chief, Ben Bernanke, later in the day.
The Pound is trading lower after reports showed that the UK economy contracted unexpectedly in the first three months of 2012. Following the release of the data, UK Chancellor, George Osborne stated that abandoning the government’s austerity plan would make the tough economic situation even worse.
Meanwhile, the Euro receives a boost after the European Central Bank (ECB) President Mario Draghi stated that ECB expects banks to use its liquidity injection of €520 billion to refinance the real economy. He further state that risks are now ‘broadly balanced’. Additionally, the ECB executive board member, Jose Manuel Gonzalez-Paramo, affirmed that Spain will be able to cover its 2012 financing needs despite rising borrowing costs.
Federal Open Market Committee rate decision is likely to receive increased market attention later today, wherein the Fed is likely to reiterate its intent to keep the benchmark interest rate near zero through 2014.
The greenback traded lower in the New York session yesterday against the key currencies.
EUR USD
This morning at 09:40 GMT, the EUR is trading at 1.3215 against the USD, 0.11% higher from the New York close, after the ECB President, Mario Draghi, expressed confidence that the Euro-zone economy would benefit from the liquidity injection undertaken by the central bank. During the session, the pair traded at a high of 1.3230 and a low of 1.3186. Yesterday, the EUR strengthened against the USD by 0.34% in the New York session, and closed at 1.3201.
The pair is expected to find its first support at 1.3166 and first resistance at 1.3247.
GBP USD
At 09:40 GMT, the GBP is trading at 1.6097 against the USD, 0.31% lower from the New York close, after reports showed that UK gross domestic product declined 0.2% (QoQ) in first quarter of 2012, compared to a 0.3% decline recorded in previous quarter. Market had expected a 0.1% rise in Q1FY2012. During the session, the pair traded at a high of 1.6171 and a low of 1.6082. Yesterday, the British Pound rose 0.07% versus the Dollar in the New York session, and closed at 1.6147.
The pair is expected to find its first support at 1.6062 and first resistance at 1.6151.
USD JPY
The USD is trading at 81.17 against the JPY at 09:40 GMT this morning, 0.19% lower from the New York close. On the economic front, small business sentiment in Japan came in at 47.6 in April, down from 48.7 a month ago. Additionally, machine tool orders in Japan rose 1.6% (YoY) in March, up from February’s 8.4% decline. During the session, the pair traded at a high of 81.56 and a low of 81.12. In the New York session yesterday, USD rose 0.36% against JPY, and closed at 81.33.
The pair is expected to find its first support at 80.94 and first resistance at 81.49.
USD CHF
This morning at 09:40 GMT, the USD is trading at 0.9093 against the Swiss Franc, 0.12% lower from the New York close. During the session, the pair traded at a high of 0.9114 and a low of 0.9083. In the New York session yesterday, USD fell 0.36% against the CHF, and closed at 0.9103. Yesterday, trade surplus in Switzerland narrowed to CHF1.7 billion in March, from a revised surplus of CHF2.6 billion in February.
The pair is expected to find its first support at 0.9070 and first resistance at 0.9128.
USD CAD
At 09:40 GMT, the USD is trading at 0.9866 against the CAD, marginally lower from the New York close. The Canadian dollar is trading higher amid speculation that higher inflation may encourage the Bank of Canada (BoC) to increase its interest rate. During the session, the pair traded at a high of 0.9881 and a low of 0.9856. Yesterday, USD fell 0.46% against CAD in the New York session, and closed at 0.9870.
The pair is expected to find its first support at 0.9841 and first resistance at 0.9905.
AUD USD
The AUD is trading at 1.0336 against the USD, at 09:40 GMT this morning, 0.12% higher from the New York close. During the session, the pair traded at a high of 1.0347 and a low of 1.0307. AUD rose 0.41% against USD in the New York session yesterday, and closed at 1.0323.
The pair is expected to find its first support at 1.0291 and first resistance at 1.0364.
Gold
At 09:40 GMT, Gold is trading at $1641.78 per ounce, flat from the New York close. This morning, Gold traded at a high of $1644.53 and a low of $1640.84 per ounce. In the New York session yesterday, the yellow metal declined marginally, and closed at $1641.98.
Gold has its first support at $1635.79 and first resistance at $1648.56.
Silver
Silver is trading at $30.81 per ounce, marginally lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $30.90 and a low of $30.78. Silver weakened 0.35% against USD in the New York session yesterday, and closed at $30.85.
Silver has its first support at $30.61 and first resistance at $31.08.
Crude Oil
At 09:40 GMT, Oil is trading at $103.69 per barrel, 0.10% lower from the New York close. In early Asian session, oil prices were trading higher, after reports showed a decline in US crude oil inventories. Late yesterday, the American Petroleum Institute reported that crude oil inventories fell 960,000 barrels in the week to April 20. Investors are now awaiting the US Energy Information Administration report due later today, which is expected to show a rise of 1.5 million barrels in crude stockpiles. This morning, Oil traded at a high of $104.16 and a low of $103.61. Yesterday, Oil rose 0.55% against USD in the New York session, and closed at $103.77.
It has its first support at $103.03 and first resistance at $104.22.
Economic Snapshot
UK economy slipped into recession in Q1
On a sequential basis, Gross Domestic Product (GDP) in the UK declined 0.2% (QoQ) in Q1 FY2012, against consensus expectation of a 0.1% rise. Meanwhile, on an annual basis, GDP came in flat in the Q1 FY2011, while market expected a 0.3% growth.
Japanese small business sentiment weakened in April
In Japan, the small business sentiment index declined to a reading of 47.6 in April, compared to a reading of 48.7 in March.
Japan machine tool orders rose in March
On an annual basis, machine tool orders in Japan rose 1.6% in March, compared to an 8.4% decline in February. However, the preliminary reading suggested an increase of 2.4% in March.

PDF-Direct FX_Daily Currency Report 18th April 2012
Forex Market Update

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

Euro is trading lower after the current account balance in Euro-zone unexpectedly showed a deficit in February, in comparison to surplus in previous month. Sentiments were further dented, after construction output in the Euro-zone decreased for the third month in a row in February.

Additionally, Portuguese Prime Minister, Pedro Passos Coelho cautioned that the timeframe for the nation to return to international capital markets following its bailout might be delayed to September 2013.

The British Pound received a boost, after UK jobless claims rose less than expected in March and unemployment rate fell for the first time in almost a year, indicating that the labor market is stabilizing. Additionally, the Pound gained amid receding hopes of an additional round of easing, after minutes from the latest meeting showed that only David Miles wanted to increase the QE budget by another £25 billion to £350 billion, while the rest of the committee voted to leave the asset purchase programme unchanged.

Yen is drifting lower, after Bank of Japan (BoJ) Deputy Governor, Kiyohiko Nishimura stated that the central bank is ready to ease monetary policy further, if necessary, to help Japan’s economy recover and escape deflation.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3085 against the USD, 0.32% lower from the New York close, after reports showed that the current account deficit in Euro-zone stood at €1.3 billion in February, compared to surplus of €3.7 billion in January. Additionally, construction output dropped a seasonally adjusted 7.1% (MoM) in February. Separately, French President, Nicolas Sarkozy stated that Euro’s exchange rate against the dollar must be discussed with the European Central Bank. He added that Euro is too expensive and a stronger euro hurts exporters. During the session, the pair traded at a high of 1.3141 and a low of 1.3076. Yesterday, the EUR weakened against the USD by 0.06% in the New York session, and closed at 1.3127.

The pair is expected to find its first support at 1.3055 and first resistance at 1.3135.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5973 against the USD, 0.30% higher from the New York close, after the UK unemployment rate dropped to 8.3% in April. Moreover, the UK claimant count change rose by 3,600 in March, lower than the rise in February. Additionally, Pound got a support after the BoE minutes showed that Adam Posen joined the majority of the nine-member Monetary Policy Committee in seeking no change to the £325 billion asset-purchase target, leaving David Miles the only member who insisted on the increase of £25 billion. During the session, the pair traded at a high of 1.5994 and a low of 1.5895. Yesterday, the British Pound fell 0.13% versus the Dollar in the New York session, and closed at 1.5926.

The pair is expected to find its first support at 1.5914 and first resistance at 1.6013.

USD JPY

The USD is trading at 81.43 against the JPY at 09:40 GMT this morning, 0.66% higher from the New York close. Yen is trading lower, after a Japanese newspaper reported that the BoJ may raise its inflation forecasts, raising speculation that the central bank would go for another round of monetary easing to achieve its price target. During the session, the pair traded at a high of 81.57 and a low of 80.89. In the New York session yesterday, USD rose 0.36% against JPY, and closed at 80.89.

The pair is expected to find its first support at 80.78 and first resistance at 81.82.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9188 against the Swiss Franc, 0.40% higher from the New York close. In Switzerland, ZEW Survey for expectations climbed to a reading of 2.1 in April, after rising to 0.0 in March. During the session, the pair traded at a high of 0.9195 and a low of 0.9144. In the New York session yesterday, USD rose marginally against CHF, and closed at 0.9151.

The pair is expected to find its first support at 0.9149 and first resistance at 0.9211.

USD CAD

At 09:40 GMT, the USD is trading at 0.9902 against the CAD, marginally higher from the New York close. Loonie is trading higher, following Bank of Canada’s (BoC) indication that it may need to start raising interest rates. Additionally, BoC maintained its target for the overnight rate at 1.0%. The Loonie was also supported after both the BoC and the IMF, raised their 2012 economic forecast for the Canadian economy. Investors are eyeing Bank of Canada (BoC) monetary policy report statement to be released later today. During the session, the pair traded at a high of 0.9906 and a low of 0.9882. Yesterday, USD fell 0.57% against CAD in the New York session, and closed at 0.9902.

The pair is expected to find its first support at 0.9852 and first resistance at 0.9965.

AUD USD

The AUD is trading at 1.0376 against the USD, at 09:40 GMT this morning, 0.20% lower from the New York close. In Australia, the Westpac Leading Index rose 0.2% in February, compared to 0.6% rise posted in previous month. During the session, the pair traded at a high of 1.0416 and a low of 1.0368. AUD rose 0.22% against USD in the New York session yesterday, and closed at 1.0397.

The pair is expected to find its first support at 1.0349 and first resistance at 1.0411.

Gold

At 09:40 GMT, Gold is trading at $1647.00 per ounce, 0.18% lower from the New York close, as the greenback strengthened. This morning, Gold traded at a high of $1654.49 and a low of $1645.99 per ounce. In the New York session yesterday, the yellow metal declined 0.13%, and closed at $1650.03.

Gold has its first support at $1635.27 and first resistance at $1658.16.

Silver

Silver is trading at $31.70 per ounce, marginally lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $31.90 and a low of $31.65. Silver weakened marginally against USD in the New York session yesterday, and closed at $31.70.

Silver has its first support at $31.42 and first resistance at $31.95.

Crude Oil

At 09:40 GMT, Oil is trading at $104.12 per barrel, 0.10% lower from the New York close, as concerns over Europe’s sovereign debt crisis continue to worry investors, despite Spain’s successful bond auction. Late yesterday, the American Petroleum Institute reported that crude-oil inventories rose by 3.4 million barrels for the week ended April 13. Investors now await the US Energy Information Administration report due later in the day, to offer further direction to oil prices. This morning, Oil traded at a high of $104.51 and a low of $104.08. Yesterday, Oil rose 0.26% against USD in the New York session, and closed at $104.27.

It has its first support at $103.35 and first resistance at $104.98.

Economic Snapshot

UK March jobless claims rose less-than-expected

The UK claimant count change rose by 3,600 in March, lower than the rise of 4,500 in February. Market expected an increase of 6,000. Additionally, the ILO unemployment rate in the UK, during the three months till February stood at 8.3%, compared to a rate of 8.4% in three months ended January. Meanwhile, the average earnings including bonus climbed 1.1% in February, while the average earnings excluding bonus rose 1.6% in February.

BoE voted 8-1 to hold the size of its asset-purchase program

The minutes of the Bank of England’s Monetary Policy Committee (MPC) meeting released indicated that policy makers has decided to maintain the size of the asset purchase programme at £325 billion through a split vote as one member called for an increase in stimulus. Eight members of the MPC, including Governor, Mervyn King voted to retain quantitative easing at £325 billion.

Euro-zone current account recorded deficit in February

On a seasonally adjusted basis, the Euro-zone current account deficit stood at €1.3 billion in February, compared to a €3.7 billion surplus recorded in January.

Euro-zone construction output declined in February

On a seasonally adjusted monthly basis, the construction output in the Euro-zone retreated 7.1% in February, compared to the revised 0.5% drop in January.

Swiss ZEW survey expectations increased in April

The ZEW expectations survey in Switzerland rose to a reading of 2.1 in April, following a reading of 0.0 points in March.

PDF-Direct FX_Daily Currency Report 17th April 2012
Forex Market Update

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

Euro is trading higher after the ZEW index of German investor sentiment showed an unexpected rise in April for a fifth straight month.

In today’s auction, Spain’s Treasury sold €2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and €1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.

Separately, IMF chief, Christine Lagarde, stated that the International Monetary Fund hopes to boost its funding to fight financial crises by more than $400 billion.

The British Pound rose after UK consumer prices rose in March, reducing expectations for more easing from the Bank of England. Meanwhile, the Yen fell against greenback, after reports showed that industrial production in Japan declined more-than-expected in February.

Japanese Finance Minister, Jun Azumi, stated that country would provide $60 billion to the International Monetary Fund’s effort to expand its resources and safeguard the global economy against any worsening Euro-zone debt crisis.

In early Asian session, the Australian Dollar came under pressure, after the Reserve Bank of Australia (RBA) indicated that it might cut interest rates to shore up the nation’s economy, if inflation eases further.

The greenback traded lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3150 against the USD, 0.12% higher from the New York close, after German ZEW Survey’s economic sentiment index climbed to 23.4 in April, from 22.3 in the previous month. Additionally, the current situation index rose to 40.7 in April, from 37.6 in March. Moreover, Euro-zone ZEW Survey economic sentiment grew to a reading of 13.1 in April, from 11.0 points in March. Separately, French President, Nicolas Sarkozy, stated that a weak Euro is good for the Euro-zone’s exports. During the session, the pair traded at a high of 1.3173 and a low of 1.3091. Yesterday, the EUR strengthened against the USD by 0.67% in the New York session, and closed at 1.3133.

The pair is expected to find its first support at 1.3053 and first resistance at 1.3210.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5951 against the USD, 0.33% higher from the New York close. In the UK, the Consumer Price Index (CPI) rose 0.3% (MoM) in March, in line with market expectations, compared to 0.6% rise posted in previous month. Moreover, the Retail Price Index rose 0.4% (MoM) in March, compared to 0.8% rise posted in previous month. Additionally, DCLG House Price Index rose 0.3% (YoY) in February, compared to 0.2% rise posted in January. Market had expected 0.4% rise in previous month. During the session, the pair traded at a high of 1.5971 and a low of 1.5862. Yesterday, the British Pound rose 0.34% versus the Dollar in the New York session, and closed at 1.5898.

The pair is expected to find its first support at 1.5859 and first resistance at 1.6007.

USD JPY

The USD is trading at 80.65 against the JPY at 09:40 GMT this morning, 0.23% higher from the New York close. Yen is trading lower, amid downbeat Japanese industrial production data. In Japan, the industrial production declined 1.6% (MoM) in February, compared to 1.8% decline recorded in the previous month. Meanwhile, the Consumer Confidence Index rose to a reading of 40.3 in March, compared to a revised reading of 39.9 in February. During the session, the pair traded at a high of 80.74 and a low of 80.34. In the New York session yesterday, USD fell 0.39% against JPY, and closed at 80.46.

The pair is expected to find its first support at 80.35 and first resistance at 80.90.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9138 against the Swiss Franc, 0.14% lower from the New York close. During the session, the pair traded at a high of 0.9183 and a low of 0.9125. In the New York session yesterday, USD fell 0.73% against CHF, and closed at 0.9151.

The pair is expected to find its first support at 0.9096 and first resistance at 0.9208.

USD CAD

At 09:40 GMT, the USD is trading at 0.9973 against the CAD, 0.26% lower from the New York close. In its latest policy setting meeting today, the Bank of Canada is expected maintain its interest rate steady at 1%. During the session, the pair traded at a high of 1.0012 and a low of 0.9972. Yesterday, USD rose 0.14% against CAD in the New York session, and closed at 0.9998.

The pair is expected to find its first support at 0.9952 and first resistance at 1.0013.

AUD USD

The AUD is trading at 1.0364 against the USD, at 09:40 GMT this morning, 0.07% higher from the New York close. However during early Asian session today, the Aussie came under pressure, after the release of minutes of Reserve Bank of Australia’s April 3 meeting. The minutes indicated that weak demand leading to moderate inflation and rising unemployment would increase the probability for the first interest rate cut this year. During the session, the pair traded at a high of 1.0369 and a low of 1.0305. AUD fell marginally against USD in the New York session yesterday, and closed at 1.0357.

The pair is expected to find its first support at 1.0320 and first resistance at 1.0394.

Gold

At 09:40 GMT, Gold is trading at $1653.08 per ounce, 0.07% higher from the New York close. This morning, Gold traded at a high of $1653.76 and a low of $1645.45 per ounce. In the New York session yesterday, the yellow metal rose marginally and closed at $1651.93.

Gold has its first support at $1645.85 and first resistance at $1659.11.

Silver

Silver is trading at $31.61 per ounce, 0.36% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $31.65 and a low of $31.34. Silver weakened 0.30% against USD in the New York session yesterday, and closed at $31.50.

Silver has its first support at $31.37 and first resistance at $31.78.

Crude Oil

At 09:40 GMT, Oil is trading at $103.74 per barrel, 0.50% higher from the New York close, on hopes that demand for oil would rise, amid strong retail sales data from the US. This morning, Oil traded at a high of $103.77 and a low of $102.66. Yesterday, Oil rose 0.24% against USD in the New York session, and closed at $103.20.

It has its first support at $102.44 and first resistance at $104.41.

Economic Snapshot

UK Consumer Price Index advanced in March

On a year-on-year basis, Consumer Price Index in the UK rose 3.5% in March, compared to a 3.4% rise in February.

Retail price inflation in the UK decline in March

On an annual basis, the retail price inflation in the UK fell to 3.6% in March, compared to a rate of 3.7% in February.

DCLG house price index in the UK rose in February

On an annual basis, DCLG house price index in the UK edged up 0.3% in February, following a flat reading in January.

German ZEW economic sentiment improved in April

In Germany, the ZEW economic sentiment climbed to 23.4 in April, from 22.3 in March. Additionally, the ZEW current economic situation rose to 40.7 in April, from 37.6 in March.

Euro-zone March consumer price inflation revised up

On an annual basis, Euro-zone’s consumer price inflation for March was revised up to 2.7%, from the previous estimate of 2.6%. Also core inflation rose to 1.6% in March, from 1.5% in February.

Euro-zone ZEW economic sentiment advanced in April

In the Euro-zone, the ZEW economic sentiment rose to 13.1 in April, from 11.0 in March.

Japanese consumer sentiment rose in March

On a seasonally adjusted basis, the consumer confidence index in Japan climbed to 40.3 in March, compared to a revised reading of 39.9 in February.

Industrial production in Japan declined in February

On a monthly basis, industrial production in Japan dropped 1.6% in February, compared to the preliminary reading of a 1.8% decline. Meanwhile, the capacity utilization on a seasonally adjusted monthly basis fell 1.7% in February, compared to 3.2% rise posted in January.

PDF-Direct FX_Daily Currency Report 11th April 2012
Forex Market Update

This morning, the greenback is trading lower against the major currencies.

The Euro edged higher against the US Dollar today morning. However gains were limited as Italy’s one-year borrowing costs rose in a bond auction to 2.84%, up from 1.405% at the previous auction in mid-March.

Investor confidence weakened yesterday, after Spanish Prime Minister, Mariano Rajoy said that the nation’s future is at stake in its battle to tame surging bond yields and as investor sentiment in the Euro-zone dropped in April, after three successive monthly increases.

Additionally, economic data released this morning revealed that Spanish industrial production contracted for the sixth consecutive month in February, while Germany’s wholesale price inflation slowed for the second consecutive month in March.

Today morning the Bank of Japan stated that nation’s economy is expected to return to a moderate recovery path as the pace of recovery in overseas economies picks up and as reconstruction-related demand after the earthquake disaster gradually strengthens.

Investors stay focused on the US Federal Reserve’s release of its monthly Beige Book regional economic survey, monthly budget statement for March and import price index later today.

The greenback traded higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3108 against the USD, 0.17% higher from the New York close. However, sentiment on the Euro remained mixed amid sustained concerns over the handling of Spain’s financial crisis despite reassurances from Spanish Prime Minister, Mariano Rajoy, that the country would cut its budget deficit to 3% of gross domestic product in 2013. During the session, the pair traded at a high of 1.3133 and a low of 1.3067. Yesterday, the EUR weakened against the USD by 0.23% in the New York session, and closed at 1.3085.

The pair is expected to find its first support at 1.3062 and first resistance at 1.3146.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5891 against the USD, 0.16% higher from the New York close, after retail sales for March in the UK rose for the first time in three months. This morning the British Retail Consortium’s (BRC) monthly retail sales monitor indicated that on an annual basis, same-store-sales in the UK rose 1.3% in March compared to a 0.3% decline recorded in the previous month. During the session, the pair traded at a high of 1.5929 and a low of 1.5852. Yesterday, the British Pound fell marginally versus the Dollar in the New York session, and closed at 1.5866.

The pair is expected to find its first support at 1.5824 and first resistance at 1.5944.

USD JPY

The USD is trading at 80.87 against the JPY at 09:40 GMT this morning, 0.16% higher from the New York close. In its monthly report, the Bank of Japan stated that “Japan’s economic activity has shown some signs of picking up, although it has remained more or less flat.” During the session, the pair traded at a high of 80.95 and a low of 80.58. In the New York session yesterday, USD fell 0.45% against JPY, and closed at 80.74.

The pair is expected to find its first support at 80.55 and first resistance at 81.23.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9166 against the Swiss Franc, 0.18% lower from the New York close. During the session, the pair traded at a high of 0.9195 and a low of 0.9149. In the New York session yesterday, USD rose 0.18% against CHF, and closed at 0.9183.

The pair is expected to find its first support at 0.9140 and first resistance at 0.9202.

USD CAD

At 09:40 GMT, the USD is trading at 1.0031 against the CAD, 0.10% lower from the New York close. During the session, the pair traded at a high of 1.0053 and a low of 1.0013. Yesterday, USD rose 0.53% against CAD in the New York session, and closed at 1.0041.

The pair is expected to find its first support at 0.9989 and first resistance at 1.0063.

AUD USD

The AUD is trading at 1.0285 against the USD, at 09:40 GMT this morning, 0.26% higher from the New York close, despite consumer confidence in Australia falling to the lowest level in eight months. Meanwhile, another data highlighted weakness in the housing market as home-loan approvals for February fell for the second month. During the session, the pair traded at a high of 1.0305 and a low of 1.0226. AUD fell 0.38% against USD in the New York session yesterday, and closed at 1.0257.

The pair is expected to find its first support at 1.0238 and first resistance at 1.0320.

Gold

At 09:40 GMT, Gold is trading at $1655.04 per ounce, 0.26% lower from the New York close, snapping four consecutive sessions of gains which was driven by safe-haven flows on a weak global economic outlook. This morning, Gold traded at a high of $1660.96 and a low of $1653.00 per ounce. In the New York session yesterday, the yellow metal rose 0.81%, and closed at $1659.33.

Gold has its first support at $1637.00 and first resistance at $1668.09.

Silver

Silver is trading at $31.61 per ounce, 0.52% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $31.77 and a low of $31.48. Silver strengthened 0.42% against USD in the New York session yesterday, and closed at $31.77.

Silver has its first support at $31.24 and first resistance at $31.91.

Crude Oil

At 09:40 GMT, Oil is trading at $101.48 per barrel, 0.40% higher from the New York close. However, during intraday, Oil prices declined as a cut in global oil consumption forecast by the EIA and an unexpected surge in US crude stocks reinforced fears that demand growth may slow. Late Tuesday, the American Petroleum Institute reported that, crude oil stockpiles rose 6.6 million barrels for week ended April 6. This morning, Oil traded at a high of $101.67 and a low of $100.84. Yesterday, Oil fell 1.13% against USD in the New York session, and closed at $101.12.

It has its first support at $100.46 and first resistance at $102.73.

Economic Snapshot

German wholesale price inflation rise slows

On an annual basis, the wholesale price index in Germany climbed 2.2% in March, compared to a 2.6% rise in February. Month-on-month, wholesale prices moved up 0.9% in March, following the previous month’s 1.0% growth.

Australian consumer confidence declined in April

The Westpac Melbourne Institute Consumer Sentiment Index declined 1.6% to 94.5 in April, compared to a reading of 96.1 in March.

Industrial output in Spain declined for the sixth month

On a calendar adjusted annual basis, industrial output in Spain declined 5.1% in February, compared to a revised 4.3% fall in January. Meanwhile, on an unadjusted basis, production fell 3.0%, faster than the 2.5% contraction in January.

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PDF-Direct FX_Daily Currency Report 10th April 2012
Forex Market Update

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

Euro is trading lower against greenback, after the Sentix research institute stated that European investor confidence dropped for the first time in four months in April as the debt crisis raised worries about economic growth.

Earlier in the day, the yield on Spanish 10-year government bonds climbed to 5.8%, while the nation’s government reiterated its aim to cut the budget deficit to 3% of gross domestic product next year. Spain’s Finance Minister, Luis de Guindos stated that the government plans to stick to its reform agenda, including planned cuts in the country’s popular healthcare system.

Yen continued to strengthen this morning, after Bank of Japan’s (BoJ) decision to keep interest rate unchanged, dampened investors’ hopes for fresh easing measures.

Data released this morning showed that the Swiss unemployment rate fell in March, in comparison with the previous month. The House Price Balance Index in the UK rose in March, compared to the previous month.

Elsewhere, China reported trade surplus of $5.35 billion in March, compared to a deficit of $31.48 billion in February.

In the US, Wholesale Inventories, NFIB Small Business Optimism and IBD/TIPP Economic Optimism are the key economic indicators scheduled for release today.

The greenback traded lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3079 against the USD, 0.22% lower from the New York close, as concerns over Spain’s high borrowing costs intensified, after the yield on 10-year government bonds climbed to 5.8%, the highest level since early December. Additionally, Euro-zone Sentix Investor Confidence fell for the ninth month to -14 points in April, from -8.2 points in March. During the session, the pair traded at a high of 1.3144 and a low of 1.3073. Yesterday, the EUR strengthened against the USD by 0.30% in the New York session, and closed at 1.3108.

The pair is expected to find its first support at 1.3037 and first resistance at 1.3133.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5829 against the USD, 0.43% lower from the New York close. In economic news, the RICS House Price Balance Index in the UK rose to a reading of -10.0 in March, compared to a reading of -13.0 posted in February. During the session, the pair traded at a high of 1.5931 and a low of 1.5826. Yesterday, the British Pound rose 0.20% versus the Dollar in the New York session, and closed at 1.5897.

The pair is expected to find its first support at 1.5793 and first resistance at 1.5898.

USD JPY

The USD is trading at 81.22 against the JPY at 09:40 GMT this morning, 0.44% lower from the New York close. Yen rose against the greenback, after the Bank of Japan (BoJ) kept its key interest rate unchanged in the range of 0.0% to 0.1%, and refrained from announcing new easing measures. Additionally, machine tool orders rose 2.4% (YoY) in March. Separately, Japanese Prime Minister, Yoshihiko Noda stated that the government would hold ministerial meetings on overcoming deflation as policy makers explore ways to end more than a decade of deflation. During the session, the pair traded at a high of 81.87 and a low of 81.06. In the New York session yesterday, USD rose 0.29% against JPY, and closed at 81.58.

The pair is expected to find its first support at 80.90 and first resistance at 81.70.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9195 against the Swiss Franc, 0.28% higher from the New York close. The Swiss Franc is trading lower after the unemployment rate in Switzerland fell to 3.2% in March, compared to a rate of 3.4% in the previous month. During the session, the pair traded at a high of 0.9200 and a low of 0.9146. In the New York session yesterday, USD fell 0.24% against CHF, and closed at 0.9170.

The pair is expected to find its first support at 0.9159 and first resistance at 0.9220.

USD CAD

At 09:40 GMT, the USD is trading at 0.9990 against the CAD, 0.20% higher from the New York close. During the session, the pair traded at a high of 0.9998 and a low of 0.9951. Yesterday, USD fell 0.20% against CAD in the New York session, and closed at 0.9971.

The pair is expected to find its first support at 0.9960 and first resistance at 1.0011.

AUD USD

The AUD is trading at 1.0279 against the USD, at 09:40 GMT this morning, 0.29% lower from the New York close, after China, Australia’s largest export partner, registered an import growth of just 5.3% after increasing by 39.6% in February. Meanwhile, the National Australia Bank’s Business Conditions Index rose to a reading of 4.0 in March. Additionally, AIG’s Performance of Construction Index posted a reading of 36.2 in March. During the session, the pair traded at a high of 1.0357 and a low of 1.0275. AUD rose 0.08% against USD in the New York session yesterday, and closed at 1.0309.

The pair is expected to find its first support at 1.0251 and first resistance at 1.0332.

Gold

At 09:40 GMT, Gold is trading at $1643.30 per ounce, 0.15% higher from the New York close, despite a firm US Dollar, as expectations grew that a sluggish employment market in the US could spark a fresh round of quantitative easing from the Federal Reserve. This morning, Gold traded at a high of $1654.66 and a low of $1640.83 per ounce. In the New York session yesterday, the yellow metal declined 0.35%, and closed at $1640.81.

Gold has its first support at $1635.67 and first resistance at $1653.82.

Silver

Silver is trading at $31.56 per ounce, marginally lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $31.94 and a low of $31.51. Silver weakened 0.73% against USD in the New York session yesterday, and closed at $31.56.

Silver has its first support at $31.28 and first resistance at $31.89.

Crude Oil

At 09:40 GMT, Oil is trading at $101.95 per barrel, 0.30% lower from the New York close, as a dismal rise in Chinese imports raised concerns about the country’s economic recovery, fuelling oil demand concerns. Investors await the oil inventory reports later today and tomorrow to offer direction to oil prices. This morning, Oil traded at a high of $102.81 and a low of $101.83. Yesterday, Oil rose 0.66% against USD in the New York session, and closed at $102.27.

It has its first support at $101.12 and first resistance at $103.12.

Economic Snapshot

UK house price balance improved in March, indicates RICS

The Royal Institution of Chartered Surveyors (RICS) reported that, on a seasonally adjusted basis, the House Price Balance Index in the UK rose to a reading of -10.0 in March, marking the highest level since June 2010 and compared to a reading of -13.0 posted in February.

Germany’s merchandise trade surplus widened more-than-expected in February

On an unadjusted basis, the trade surplus in Germany widened to €14.7 billion in February, compared to a €13.2 billion surplus in January. Market expected a surplus of €12.0 billion in February. Additionally, on a seasonally adjusted basis, exports of goods rose 8.6% (YoY) to €91.3 billion in February, while imports rose 6.1% (YoY) to €76.5 billion in February.

German current account surplus widened in February

On an unadjusted basis, current account surplus in Germany widened to €11.1 billion in February, from €9.5 billion surplus in January.

French industrial production rose in February

On a seasonally and working-day adjusted basis, industrial production in France edged up 0.3% (MoM) in February, compared to a revised 0.2% rise in January. However, manufacturing output declined 1.2% in February, from a revised 0.1% drop in January.

Euro-zone Sentix investor confidence fell in April

The Sentix Investor Confidence Index in the Euro-zone fell to a reading of -14.7 in April, compared to a reading of -8.2 in March.

Swiss jobless rate declined in March

On an unadjusted basis, unemployment rate in Switzerland dropped to 3.2% in March, compared to 3.4% in February. After adjusting to seasonal variations, unemployment rate remained unchanged at 3.1% in March.

BoJ retains benchmark interest rate

The Bank of Japan (BoJ) kept its key interest rate unchanged in the range of 0.0% to 0.1%, and did not announce new easing measures.

Japan machine tool orders increase in March

On an annual basis, machine tool orders in Japan increased 2.4% in March, compared to an 8.6% decline in February.

PDF-Direct FX_Daily Currency Report 4th April 2012
Forex Market Update

The greenback has extended its yesterday’s gains and is trading higher this morning against the major currencies, after the Federal Reserve signaled no need for additional monetary easing.

However, the San Francisco Fed President, John Williams, was of a different opinion, as he indicated that despite signs of the economic recovery picking up steam, the central bank must continue to act “vigorously” to boost the economy and jobs market.

The Euro is trading lower after retail sales in the Euro-zone declined in February. Additionally, the final reading of the Euro-zone composite Purchasing Managers Index for March rose from a preliminary estimate but still indicated a contraction in business activity. The Euro fell further after Spain sold €2.6 billion of government bonds at higher yields than at previous sales.

Investors await the ECB’s monetary policy meeting due later today, wherein the central bank is expected leave its benchmark interest rate unchanged at 1%. However, all eyes are expected to be focused on the post-meeting press conference by the ECB President, Mario Draghi, for further hints on the overall economic scenario.

The Australian Dollar drifted lower after the Australia’s trade account unexpectedly remained in deficit for a second straight month in February.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3169 against the USD, 0.48% lower from the New York close, after Euro-zone retail sales dropped 0.1% in February, following a 1.1% rise in January. Moreover, the final Euro-zone services Purchasing Managers Index (PMI) advanced to a reading of 49.2 in March. Additionally, the final German services PMI rose to a reading of 52.1 in March, while the services PMI in France posted a reading of 50.1 in March. During the session, the pair traded at a high of 1.3234 and a low of 1.3161. Yesterday, the EUR weakened against the USD by 0.64% in the New York session, and closed at 1.3233.

The pair is expected to find its first support at 1.3098 and first resistance at 1.3303.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5874 against the USD, 0.24% lower from the New York close, despite release of positive economic data. On the economic front, the Purchasing Managers Index in the UK for service sector rose by 1.5 points to 55.3 in March. Additionally, the Halifax reported that its House Price Index rose 2.2% in March. Also, the BRC annual Shop Price Inflation Index in the UK rose to 1.5% in March. During the session, the pair traded at a high of 1.5914 and a low of 1.5859. Yesterday, the British Pound fell 0.44% versus the Dollar in the New York session, and closed at 1.5912.

The pair is expected to find its first support at 1.5812 and first resistance at 1.5983.

USD JPY

The USD is trading at 82.31 against the JPY at 09:40 GMT this morning, 0.63% lower from the New York close. During the session, the pair traded at a high of 82.94 and a low of 82.20. In the New York session yesterday, USD rose 0.77% against JPY, and closed at 82.83.

The pair is expected to find its first support at 81.85 and first resistance at 82.88.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9143 against the Swiss Franc, 0.49% higher from the New York close. During the session, the pair traded at a high of 0.9149 and a low of 0.9099. In the New York session yesterday, USD rose 0.69% against CHF, and closed at 0.9099, after the US Federal Reserve dashed hopes of an additional round of easing in the near future.

The pair is expected to find its first support at 0.9049 and first resistance at 0.9193.

USD CAD

At 09:40 GMT, the USD is trading at 0.9935 against the CAD, 0.26% higher from the New York close. During the session, the pair traded at a high of 0.9942 and a low of 0.9907. Yesterday, the USD fell marginally against the CAD in the New York session, and closed at 0.9910. The Canadian Dollar briefly weakened against the greenback after minutes of the March 13 Federal Open Market Committee meeting showed members won’t increase stimulus unless the US economic expansion falters or prices rise at a rate slower than its 2% target.

The pair is expected to find its first support at 0.9904 and first resistance at 0.9954.

AUD USD

The AUD is trading at 1.0262 against the USD, at 09:40 GMT this morning, 0.68% lower from the New York close, after trade deficit in Australia dropped to A$480 million in February, from A$971 million in January. Market had expected the balance to be in a surplus of A$1.1 billion. Meanwhile, the Australian Industry Group/Commonwealth Bank Australian Performance of Services Index rose 0.3 points to 47.0 points in March. During the session, the pair traded at a high of 1.0332 and a low of 1.0246. AUD fell 0.39% against USD in the New York session yesterday, and closed at 1.0332.

The pair is expected to find its first support at 1.0209 and first resistance at 1.0352.

Gold

At 09:40 GMT, Gold is trading at $1634.21 per ounce, 0.76% lower from the New York close, after the release of US Federal Reserve policy meeting minutes. Further, gold price came under pressure amid lack of physical demand from Asian countries, specifically, India and China. This morning, Gold traded at a high of $1648.10 and a low of $1629.64 per ounce. In the New York session yesterday, the yellow metal declined 1.77%, and closed at $1646.78.

Gold has its first support at $1615.54 and first resistance at $1666.98.

Silver

Silver is trading at $32.11 per ounce, 1.74% lower from the New York close, at 09:40 GMT this morning, after minutes of the latest Federal Reserve meeting released the day before reflected little appetite for further quantitative easing in the world’s largest economy. This morning, Silver traded at a high of $32.68 and a low of $31.94. Silver weakened 0.67% against USD in the New York session yesterday, and closed at $32.68.

Silver has its first support at $31.60 and first resistance at $32.96.

Crude Oil

At 09:40 GMT, Oil is trading at $103.31 per barrel, 0.80% lower from the New York close, after the US central bank dashed hopes of further economic stimulus, while news that Saudi Arabia is likely to keep output high also weighed on prices. Late yesterday, the American Petroleum Institute reported that the US crude oil inventories climbed 7.8 million barrels in the week to March 30. Gasoline stocks slipped 4.5 million barrels, and distillate stocks declined 1.4 million barrels. This morning, Oil traded at a high of $104.12 and a low of $103.02. Yesterday, Oil fell 0.67% against USD in the New York session, and closed at $104.12.

It has its first support at $102.50 and first resistance at $104.65.

Economic Snapshot

UK house prices edged up unexpectedly in March

On a monthly basis, house prices in the UK rose 2.2% in March, compared to a 0.4% decline in February. Market expected a 0.4% drop in March.

UK service sector increased at a faster pace in March

On a seasonally adjusted basis, services PMI in the UK climbed to 55.3 in March, following a reading of 53.8 in February. Market expected the index to decline to 53.4.

UK official reserves declined in March

The official reserves in the UK dropped by $1132.0 million to $45.71 billion in March, from $46.84 billion in February.

Final services PMI in Germany rose to a 4-month high in March

The final German services Purchasing Managers Index (PMI) rose to a reading of 52.1 in March, up from a preliminary estimate of 51.8. Analysts had expected the index to remain unchanged from a preliminary estimate. At the same time, the composite PMI decreased to a reading of 51.6 in March from 53.2 in February. The initial estimate for the index was 51.4.

French private sector contracted in March

The services PMI in France posted a reading of 50.1 in March, up marginally from the February reading of 50.0. The flash report also indicated a reading of 50.0 for last month. The composite PMI fell to a five-month low of 48.7 in March from 50.2 in February. The preliminary report showed a reading of 49.0 for March.

Euro-zone final services PMI for March contracted less than estimated

The final Euro-zone services Purchasing Managers Index (PMI) advanced to a reading of 49.2 in March, up from a preliminary estimate of 48.7. The services PMI stood at 49.3 in February. Analysts had expected the index to remain unchanged from a preliminary estimate of 48.7. Additionally, the composite PMI fell to a three-month low of 49.1 in March, above the flash reading of 48.7. The score was 49.3 in February.

PDF- Direct FX_Daily Currency Report 2nd April 2012
Forex Market Update

This morning, the greenback is trading lower against the major currencies.

Euro continued its Friday’s gains this morning against the greenback, after Spain revealed a budget plan to save more than €27 billion in 2012 through spending cuts and revenue increases, and as Euro-zone Finance Ministers agreed to raise their financial firewall to contain the region’s debt crisis.

Meanwhile, the Italian Prime Minister, Mario Monti stated that Italy’s economy has stabilized, but it may still pose a risk to the Euro-zone.

The British Pound is gaining strength, after the manufacturing Purchasing Managers Index in the UK rose to a 10-month high in March. Meanwhile, data released in Switzerland showed that the Swiss manufacturing activity expanded for the first time in seven months in March.

The Australian Dollar is trading higher after manufacturing Purchasing Managers’ Index in China hit an 11-month high in March. In contrast, the final HSBC China manufacturing PMI declined to a reading to 48.3 in March.

Markets are awaiting German bills auction scheduled later today, along with ISM data in the US which is likely to indicate that the manufacturing activity remained robust for March.

The greenback traded mixed in the New York session on Friday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3347 against the USD, marginally higher from the New York close, extending its Friday’s gains. In Germany, the manufacturing Purchasing Managers Index (PMI) fell to a reading of 48.4 in March. Additionally, in Euro-zone the manufacturing PMI decreased to a reading of 47.7 in March. Moreover, the unemployment rate in the Euro-zone climbed to 10.8% in February from 10.7% in January. During the session, the pair traded at a high of 1.3381 and a low of 1.3332. On Friday, the EUR strengthened marginally against the USD in the New York session, and closed at 1.3344.

The pair is expected to find its first support at 1.3311 and first resistance at 1.3382.

GBP USD

At 09:40 GMT, the GBP is trading at 1.6036 against the USD, 0.12% higher from the New York close, amid reports showing that Manufacturing Purchasing Manager Index (PMI), in the UK, rose to a reading of 52.1 in March, compared to 51.5 posted in February. Additionally, the Hometrack reported that the average asking price for a home in the UK rose 0.2% (MoM) in March. During the session, the pair traded at a high of 1.6063 and a low of 1.5979. On Friday, the British Pound rose 0.06% versus the Dollar in the New York session, and closed at 1.6017.

The pair is expected to find its first support at 1.5980 and first resistance at 1.6077.

USD JPY

The USD is trading at 82.75 against the JPY at 09:40 GMT this morning, 0.14% lower from the New York close. Japan’s Tankan manufacturing index remained unchanged at -4 in last quarter of 2011, missing market expectations for a reading of -1.0. During the session, the pair traded at a high of 83.30 and a low of 82.66. In the New York session on Friday, USD rose 0.77% against JPY, and closed at 82.87.

The pair is expected to find its first support at 82.04 and first resistance at 83.38.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9024 against the Swiss Franc, marginally lower from the New York close. In Switzerland, the SVME manufacturing Purchasing Managers Index (PMI) rose to 51.1 in March, compared to 49.0 in February. Additionally, retail turnover growth in Switzerland slowed to 0.8% (YoY) in February, from 4.7% in January. During the session, the pair traded at a high of 0.9032 and a low of 0.9002. In the New York session on Friday, USD fell marginally against CHF, and closed at 0.9024.

The pair is expected to find its first support at 0.9002 and first resistance at 0.9046.

USD CAD

At 09:40 GMT, the USD is trading at 0.9975 against the CAD, 0.10% lower from the New York close. During the session, the pair traded at a high of 0.9983 and a low of 0.9951. On Friday, USD rose 0.11% against CAD in the New York session, and closed at 0.9984.

The pair is expected to find its first support at 0.9951 and first resistance at 0.9999.

AUD USD

The AUD is trading at 1.0387 against the USD, at 09:40 GMT this morning, 0.41% higher from the New York close, as positive Chinese economic data spurred demand for riskier assets. Additionally, TD Securities Inflation in Australia rose 0.5% (MoM) in March. Meanwhile, the total building approvals in Australia, surprisingly fell 7.8% (MoM) in February, following a rise of 1.1% in the previous month. During the session, the pair traded at a high of 1.0448 and a low of 1.0371. AUD fell 0.44% against USD in the New York session on Friday, and closed at 1.0344.

The pair is expected to find its first support at 1.0334 and first resistance at 1.0446.

Gold

At 09:40 GMT, Gold is trading at $1666.61 per ounce, 0.09% lower from the New York close, as subdued physical demand in key Asian markets weighed on the precious metal. Traders noted muted physical demand in Asia, as markets in China remained closed and a nationwide strike by bullion and jewelry dealers in India entered its third week. This morning, Gold traded at a high of $1674.70 and a low of $1663.00 per ounce. In the New York session on Friday, the yellow metal rose 0.14%, and closed at $1668.10.

Gold has its first support at $1659.44 and first resistance at $1674.24.

Silver

Silver is trading at $32.52 per ounce, 0.86% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.62 and a low of $32.38. Silver weakened 0.76% against USD in the New York session on Friday, and closed at $32.24.

Silver has its first support at $32.24 and first resistance at $32.72.

Crude Oil

At 09:40 GMT, Oil is trading at $102.49 per barrel, 0.50% lower from the New York close, as concerns over the global economy lingered following the release of disappointing manufacturing data from the Euro-zone. On Friday, the US President, Barack Obama stated that world oil supplies were sufficient and it was possible to proceed with sanctions on banks in countries that import Iranian oil. This morning, Oil traded at a high of $103.58 and a low of $102.40. On Friday, Oil fell 0.29% against USD in the New York session, and closed at $102.96.

It has its first support at $101.88 and first resistance at $103.62.

Economic Snapshot

UK PMI manufacturing rose in March

On a seasonally adjusted basis, the UK manufacturing PMI edged up to 52.1 in March, compared to a revised reading of 51.5 recorded in February.

German manufacturing PMI dropped in March

On a seasonally adjusted basis, the manufacturing PMI in Germany fell to 48.4 in March, from 50.2 in February.

French manufacturing PMI contracts in March

In France, the manufacturing PMI declined to a reading of 46.7 in March, following a reading of 50.0 in February.

Euro-zone unemployment rate rose in February

On a seasonally adjusted basis, the unemployment rate in the Euro-zone climbed to 10.8% in February from 10.7% in January.

Euro-zone manufacturing PMI retreated in March

The manufacturing PMI in the Euro-zone declined to a reading of 47.7 in March, compared to a reading of 49.0 in February.

Retail turnover growth in Switzerland slows in February

On an annual basis, retail turnover growth in Switzerland slowed to 0.8% in February, from 4.7% in January.

Swiss SVME PMI improved more-than-expected in March

On a seasonally adjusted basis, the SVME Purchasing Managers’ Index (PMI) climbed to a reading of 51.1 in March, compared to a reading of 49.0 in February.

Direct FX_Daily Currency Report 28th March 2012
Forex Market Update

This morning, the greenback is trading lower against the major currencies, after the US Federal Reserve Chairman Ben Bernanke in an interview yesterday warned that a US recovery isn’t assured. Additionally, the greenback weakened against the Euro after Moody’s Investors Service affirmed ‘AAA’ rating for Germany yesterday and amid positive French GDP data released today morning.

The Euro is trading on strong footing, after Italian Prime Minister, Mario Monti indicated that there was little Euro-zone contagion risk from Spain’s deficit worries, and that that country is on a “steady course of budget consolidation.”

Economic data released this morning indicated that a broad measure of annual money supply growth (M3) across the Euro-zone picked up momentum in February, but the pace of lending to the private sector fell.

The Pound was trading lower today morning, following weak UK GDP figures. The final revision to the UK GDP data indicated a higher than estimated contraction for the fourth quarter, while the current account deficit narrowed for the same period.

With European data thin on the ground, market participants await durable goods order data in the US later in the day, which is expected to return to growth for February.

The greenback traded higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3355 against the USD, 0.27% higher from the New York close, amid market speculation that European finance ministers may agree to bolster the region’s debt-crisis firewall at the meeting on March 30. Additionally, optimism grew after Moody’s Investors Service late yesterday affirmed the ‘AAA’ rating on German government bonds and stated that rating outlook remained ‘Stable’ due to ‘very low event risk’ despite the prolonged debt crisis. Furthermore, the upward momentum in the Euro was supported by the final revision of the French GDP data which showed an expansion for the fourth quarter. During the session, the pair traded at a high of 1.3373 and a low of 1.3314. Yesterday, the EUR fell against the USD by 0.20% in the New York session, and closed at 1.3319.

The pair is expected to find its first support at 1.3321 and first resistance at 1.3382.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5944 against the USD, 0.03% lower from the New York close, after the report that UK’s economy contracted in the fourth quarter, strengthening the case for the Bank of England to maintain monetary easing programme. The Office for National Statistics reported today that UK’s economy contracted 0.3% in the final three months of 2011 compared to the previous quarter, and against the previous estimation of a 0.2% quarterly contraction. During the session, the pair traded at a high of 1.5965 and a low of 1.5904. Yesterday, the British Pound fell 0.24% versus the Dollar in the New York session, and closed at 1.5948.

The pair is expected to find its first support at 1.5898 and first resistance at 1.5995.

USD JPY

The USD is trading at 82.92 against the JPY at 09:40 GMT this morning, 0.30% lower from the New York close. The Yen strengthened amid speculation that Japanese companies would repatriate overseas earnings before the end of the fiscal year on March 31. During the session, the pair traded at a high of 83.19 and a low of 82.61. In the New York session yesterday, USD rose marginally 0.03% against JPY, and closed at 83.17.

The pair is expected to find its first support at 82.56 and first resistance at 83.34.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9030 against the Swiss Franc, 0.22% lower from the New York close. During the session, the pair traded at a high of 0.9054 and a low of 0.9017. In the New York session yesterday, USD rose 0.18% against CHF, and closed at 0.9050.

The pair is expected to find its first support at 0.9013 and first resistance at 0.9050.

USD CAD

At 09:40 GMT, the USD is trading at 0.9964 against the CAD, 0.10% higher from the New York close. During the session, the pair traded at a high of 0.9977 and a low of 0.9949. Yesterday, USD rose 0.42% against CAD in the New York session, and closed at 0.9954.

The pair is expected to find its first support at 0.9921 and first resistance at 0.9992.

AUD USD

The AUD is trading at 1.0415 against the USD, at 09:40 GMT this morning, 0.42% lower from the New York close. In its half-yearly Financial Stability Review released today morning, the Reserve Bank of Australia indicated that confidence in global financial markets had improved markedly since late December 2011 and that Australian banks remained in good shape and are less susceptible to global weakness. During the session, the pair traded at a high of 1.0461 and a low of 1.0408. AUD fell 0.54% against USD in the New York session yesterday, and closed at 1.0459.

The pair is expected to find its first support at 1.0367 and first resistance at 1.0503.

Gold

At 09:40 GMT, Gold is trading at $1676.95 per ounce, 0.22% lower from the New York close, amid profit booking. Meanwhile, demand for the yellow metal in the major consumer, India, remained passive as a strike continued among jewelers in protest against the recent rise in import levy. This morning, Gold traded at a high of $1684.56 and a low of $1673.96 per ounce. In the New York session yesterday, the yellow metal fell 0.73%, and closed at $1680.64.

Gold has its first support at $1668.22 and first resistance at $1691.42.

Silver

Silver is trading at $32.51 per ounce, 0.21% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.69 and a low of $32.36. Silver weakened 1.34% against USD in the New York session yesterday, and closed at $32.58.

Silver has its first support at $32.19 and first resistance at $33.00.

Crude Oil

At 09:40 GMT, Oil is trading at $106.53 per barrel, 0.30% lower from the New York close, after French newspaper, Le Monde reported that the nation is in talks with the UK and the US on a possible release of strategic oil stocks to push fuel prices down. Late yesterday, the American Petroleum Institute reported that the US crude oil inventories rose 3.6 million barrels to 351.5 million for the week ended 23rd March. This morning, Oil traded at a high of $106.94 and a low of $106.33. Yesterday, Oil fell 0.33% against USD in the New York session, and closed at $106.83.

It has its first support at $106.00 and first resistance at $107.40.

Economic Snapshot

UK GDP contracted in 4QFY2011

On a quarterly basis, the Gross Domestic Product (GDP) in the UK, fell 0.3% in fourth quarter of 2011, compared to 0.2% decline in the previous quarter.

UK current account deficit narrowed in 4QFY2011

The current account deficit in the UK, narrowed to £8.451 billion in the fourth quarter of 2011, compared to a deficit of £10.515 billion in the previous quarter.

UK total business investment decreased in Q4FY2011

On a quarterly basis, the business investment in the UK decreased 3.3% in fourth quarter of 2011, compared to 5.6% drop recorded in the previous quarter.

French GDP expanded in 4Q2011

On a quarterly basis, the Gross Domestic Product (GDP) in France, rose 0.2% in the fourth quarter of 2011, following a 0.3% increase in the third quarter.

Euro-zone M3 money supply rose unexpectedly in February

On an annual basis, the M3 money supply in Euro-zone rose 2.8% in February, compared to 2.5% rise recorded in January. Market had expected a 2.4% rise in February.

Italian business sentiment progresses in March

On a seasonally adjusted basis, the manufacturing confidence index in Italy increased to a reading of 92.1 in March, compared to an upwardly revised reading of 91.7 posted in February. Market had expected a reading of 91.5 in March.Euro-zone M3 money supply growth slows in December.

PDF- Direct FX_Daily Currency Report 27th March 2012
Forex Market Update

This morning, the greenback is trading lower against the major currencies, extending its yesterday’s fall in wake of Federal Reserve Chairman, Ben Bernanke’s suggestions that continued accommodative measures are needed to boost employment and improve the economy.

Data released this morning indicated that French consumer confidence increased markedly in March, after holding steady in the previous month, while Switzerland’s consumption indicator declined for the second consecutive month in February. Additionally, Germany’s import price inflation slowed for the fifth consecutive month in February.

Investors continue to remain jittery amid concerns over the handling of Spain’s debt woes after Italian Prime Minister, Mario Monti warned over the weekend that the threat of contagion from the nation would reignite the debt crisis in the Euro-zone.

Today morning, Organization for Economic Cooperation and Development Secretary General, Angel Gurria, stated that Euro-zone finance ministers meeting at the end of this week needs to boost the firepower of the region’s rescue funds to at least €1 trillion ($1.34 trillion) in order to restore market confidence.

Later in the day, release of Standard & Poor’s/Case Shiller report on house price inflation report, as well as industry data on consumer confidence in the US would take center stage.

The greenback traded lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3370 against the USD, 0.11% higher from the New York close. Earlier, the Euro came under pressure after disappointing German consumer confidence data added to concerns over further debt contagion in the Euro-zone. The Gfk report showed that an index of consumer climate for Germany fell unexpectedly in March, ticking down to 5.9 from 6.0 the previous month. Analysts had expected the index to rise to 6.2 in March. During the session, the pair traded at a high of 1.3386 and a low of 1.3327. Yesterday, the EUR strengthened against the USD by 0.32% in the New York session, and closed at 1.3356.

The pair is expected to find its first support at 1.3261 and first resistance at 1.3432.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5984 against the USD, 0.12% higher from the New York close, after retail sale volumes in the UK improved unexpectedly in March. In a report, the Confederation of British Industry stated that the result of its index of UK retailers improved by 2.0 points to a reading of 0.0 in March from -2.0 in February. Additionally, the Bank of England in its quarterly bulletin reported that concerns about the indebtedness and competitiveness of some Euro-zone countries persisted and remained a key influence on financial markets. During the session, the pair traded at a high of 1.5999 and a low of 1.5943. Yesterday, the British Pound rose 0.28% versus the Dollar in the New York session, and closed at 1.5964.

The pair is expected to find its first support at 1.5870 and first resistance at 1.6048.

USD JPY

The USD is trading at 82.68 against the JPY at 09:40 GMT this morning, 0.24% lower from the New York close. In economic news in Japan, the Small Business Confidence Index rose to 48.7 in March, compared to 45.3 in February. During the session, the pair traded at a high of 83.04 and a low of 82.64. In the New York session yesterday, USD rose 0.16% against JPY, and closed at 82.88.

The pair is expected to find its first support at 82.51 and first resistance at 82.94.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9022 against the Swiss Franc, 0.10% lower from the New York close. On economic front, the Swiss UBS Consumption Indicator Index fell to 0.87 points in February, from 0.92 points in January. During the session, the pair traded at a high of 0.9053 and a low of 0.9017. In the New York session yesterday, USD fell 0.22% against CHF, and closed at 0.9031.

The pair is expected to find its first support at 0.8985 and first resistance at 0.9090.

USD CAD

At 09:40 GMT, the USD is trading at 0.9911 against the CAD, marginally lower from the New York close. During the session, the pair traded at a high of 0.9922 and a low of 0.9901. Yesterday, USD fell 0.32% against CAD in the New York session, and closed at 0.9912.

The pair is expected to find its first support at 0.9879 and first resistance at 0.9966.

AUD USD

The AUD is trading at 1.0538 against the USD, at 09:40 GMT this morning, 0.07% higher from the New York close. However, during the intraday, the Australian Dollar had weakened against the greenback amid concerns over slowdown in Chinese economic growth after data released earlier today indicated that earnings at industrial companies in China dropped for the first two months of 2012. During the session, the pair traded at a high of 1.0558 and a low of 1.0504. AUD rose 0.09% against USD in the New York session yesterday, and closed at 1.0531.

The pair is expected to find its first support at 1.0474 and first resistance at 1.0580.

Gold

At 09:40 GMT, Gold is trading at $1694.32 per ounce, 0.26% higher from the New York close, extending strong gains from the previous session after dovish remarks from Federal Reserve Chairman, Ben Bernanke, fuelled speculation over a third round of monetary easing. This morning, Gold traded at a high of $1696.46 and a low of $1686.62 per ounce. In the New York session yesterday, the yellow metal rose 0.59%, and closed at $1689.96.

Gold has its first support at $1670.18 and first resistance at $1707.46.

Silver

Silver is trading at $33.15 per ounce, 0.99% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $33.19 and a low of $32.74. Silver strengthened 0.62% against USD in the New York session yesterday, and closed at $32.83.

Silver has its first support at $32.47 and first resistance at $33.51.

Crude Oil

At 09:40 GMT, Oil is trading at $107.28 per barrel, 0.10% higher from the New York close, as prices continued to draw support from hopes of a third round of monetary easing in the US as well as fears over a disruption to Iranian oil exports, but gains were capped amid worries over the outlook for the global economy. Investors await the key oil inventory reports later today and tomorrow to offer direction to oil prices. This morning, Oil traded at a high of $107.44 and a low of $106.67. Yesterday, Oil fell 0.07% against USD in the New York session, and closed at $107.12.

It has its first support at $106.62 and first resistance at $107.69.

Economic Snapshot

UK CBI realized sales improve unexpectedly in March

The Confederation of British Industry reported that its index of UK retailers improved by 2.0 points to a reading of 0.0 in March from minus 2.0 in February. Analysts had expected the index to decline by 3.0 points to a reading of -5.0 in March.

German Gfk consumer confidence decreased unexpectedly in April

The Gfk consumer confidence index in Germany declined to 5.9 points in April, compared to 6.0 points recorded in March. Market expected the indicator to rise to 6.1 points.

German import price inflation slowed in February

On a monthly basis, import prices in Germany climbed 1.0% in February, compared to a 1.3% rise in January. On an annual basis, import prices rose 3.5%, following a 3.7% gain in January, in line with market expectations.

French consumer sentiment improves sharply in March

The consumer confidence index in France rose to 87.0 in March, from 82.0 in February. Analysts expected the index to remain unchanged.

Swiss consumption indicator dropped in February

According to the UBS bank, the consumption indicator in Switzerland fell to 0.87 points in February, from 0.92 points in January.

Small business confidence in Japan improved in March

The small business confidence in Japan climbed to a reading of 48.7 in March, compared to a reading of 45.3 in February.

PDF-Direct FX_Daily Currency Report 26th March 2012
Forex Market Update

This morning, the greenback is trading higher against the major currencies, as risk aversion increased, amid concerns surrounding the global economic outlook.

Federal Reserve Bank of Atlanta President, Dennis Lockhart has indicated that the US economic recovery is gaining traction despite a weak job market and soft consumption. However, he warned that the possibility of QE3 cannot be ruled out if the economy pauses.

With a light economic calendar in Europe, the greenback is expected to take cues from the release of pending home sales and regional manufacturing data in the US.

The Euro was trading on a weaker note as fresh concerns over debt contagion resurfaced, after Italy’s Prime Minister, Mario Monti warned that Spain could reignite the Euro-zone’s debt crisis, pointing to the country’s struggle to control its finances. Moreover, EU’s commissioner for economic and monetary affairs, Olli Rehn, has demanded that the Spanish government push for more austerity measures.

Data just out indicated that the German business confidence improved more-than-expected in March, moving higher for the fifth consecutive month.

The greenback traded lower in the New York session on Friday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3217 against the USD, 0.40% lower from the New York close, as concerns over a contagion resurfaced, after the Italian Prime Minister, Mario Monti, warned that Spain could reignite the European debt crisis as it struggles to control its finances. In economic news, in Germany, the Business Confidence Index rose to 109.8 in March. The Current Conditions Index declined to 117.4 in March. The Expectations Index rose to 102.7 in March. During the session, the pair traded at a high of 1.3285 and a low of 1.3192. On Friday, the EUR strengthened against the USD by 0.13% in the New York session, and closed at 1.3270.

The pair is expected to find its first support at 1.3177 and first resistance at 1.3270.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5824 against the USD, 0.29% lower from the New York close, as risk aversion increased among investors amid concerns that the Euro-zone debt crisis would mount again if Spain does not push ahead with harsh austerity measures. Meanwhile, on Friday, BoE policymaker, Martin Weale, rekindled optimism after he stated that the UK economy looks likely to have expanded in the first quarter. During the session, the pair traded at a high of 1.5883 and a low of 1.5801. On Friday, the British Pound rose 0.16% versus the Dollar in the New York session, and closed at 1.5869.

The pair is expected to find its first support at 1.5788 and first resistance at 1.5874.

USD JPY

The USD is trading at 82.74 against the JPY at 09:40 GMT this morning, 0.48% higher from the New York close. Over the weekend, the Bank of Japan Governor, Masaaki Shirakawa, stated that central bankers must consider the dangers of keeping interest rates low for too long as they seek to strengthen the global recovery from the 2008 financial crisis. During the session, the pair traded at a high of 82.92 and a low of 82.45. In the New York session on Friday, USD fell 0.19% against JPY, and closed at 82.35.

The pair is expected to find its first support at 82.17 and first resistance at 83.12.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9119 against the Swiss Franc, 0.43% higher from the New York close. During the session, the pair traded at a high of 0.9137 and a low of 0.9070. In the New York session on Friday, USD fell 0.18% against CHF, and closed at 0.9080.

The pair is expected to find its first support at 0.9081 and first resistance at 0.9147.

USD CAD

At 09:40 GMT, the USD is trading at 0.9982 against the CAD, marginally higher from the New York close. During the session, the pair traded at a high of 0.9999 and a low of 0.9965. On Friday, USD fell 0.29% against CAD in the New York session, and closed at 0.9979. On the economic front, the Consumer Price Index in Canada rose to 2.6% (YoY) in February, following an increase of 2.5% in January.

The pair is expected to find its first support at 0.9953 and first resistance at 1.0023.

AUD USD

The AUD is trading at 1.0455 against the USD, at 09:40 GMT this morning, 0.11% lower from the New York close, as risk appetite faded. During the session, the pair traded at a high of 1.0489 and a low of 1.0427. AUD rose 0.69% against USD in the New York session on Friday, and closed at 1.0467.

The pair is expected to find its first support at 1.0387 and first resistance at 1.0507.

Gold

At 09:40 GMT, Gold is trading at $1660.54 per ounce, 0.08% lower from the New York close, amid a strong US Dollar. This morning, Gold traded at a high of $1669.6 and a low of $1655.63 per ounce. In the New York session on Friday, the yellow metal rose 0.54%, and closed at $1661.80.

Gold has its first support at $1648.26 and first resistance at $1671.21.

Silver

Silver is trading at $32.17 per ounce, 0.19% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.43 and a low of $32.03. Silver strengthened 1.69% against USD in the New York session on Friday, and closed at $32.23.

Silver has its first support at $31.66 and first resistance at $32.55.

Crude Oil

At 09:40 GMT, Oil is trading at $106.43 per barrel, 0.50% lower from the New York close, amid fears that fuel demand could falter. This morning, Oil traded at a high of $106.97 and a low of $106.19. On Friday, Oil rose 1.09% against USD in the New York session, and closed at $106.96.

It has its first support at $104.98 and first resistance at $108.07.

Economic Snapshot

German IFO Business Confidence advanced in March

In Germany, the IFO Business Confidence Index climbed to 109.8 in March, from a revised reading of 109.7 in February. Meanwhile, the IFO Current Conditions Index remained unchanged at 117.4 in March. Moreover, the IFO Expectations Index climbed to 102.7 in March, from 102.4 in February.

Euro-zone leading index rose in February

The Conference Board leading economic index in the Euro-zone rose 0.8% to 105.2 in February, compared to a 1.1% rise in January. Meanwhile, the coincident index eased 0.1% to 102.4 in February, compared to a flat reading in January.

PDF-Direct FX_Daily Currency Report 21st March 2012
Forex Market Update

This morning, the greenback is trading mostly lower against the major currencies.

Euro is trading higher this morning, after Greek Prime Minister, Lucas Papademos won parliamentary approval for the second bailout.

Separately, the Federal Reserve Chairman, Ben Bernanke stated that Europe must further strengthen its banks as its financial and economic situation ‘remains difficult’ even though stresses have lessened.

The Pound is trading lower after public sector net borrowing in the UK swung to a wider-than-expected deficit in February. Meanwhile, the minutes of the Bank of England (BoE) meeting showed that the BoE retained its quantitative easing unchanged at £325 billion through a split vote as two members preferred a £25 billion increase in the programme.

Data released this morning showed that the All Industry Activity Index in Japan declined in January, in comparison with previous month. Meanwhile, the Swiss National Bank stated that M3 growth in Switzerland reached the lowest level in February, since July 2011.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3270 against the USD, 0.32% higher from the New York close, after Greek Prime Minister Lucas Papademos won parliamentary approval for a new international bailout. Adding to the positive tone, leading economic indicator in Germany increased for the second straight month in January. Meanwhile, in the day ahead, Portugal is scheduled to auction around €2 billion of treasury bills maturing in 119 and 364 days. Additionally, Germany would also sell €2 billion of inflation-linked bonds due in April 2023. During the session, the pair traded at a high of 1.3285 and a low of 1.3224. Yesterday, the EUR strengthened against the USD by 0.30% in the New York session, and closed at 1.3227.

The pair is expected to find its first support at 1.3200 and first resistance at 1.3313.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5857 against the USD, marginally lower from the New York close, ahead of Chancellor of the Exchequer George Osborne’s budget presentation. Data released in the UK showed that public sector net borrowing swung to a deficit of £12.9 billion in February, compared to a surplus of £10.2 billion in January. During the session, the pair traded at a high of 1.5923 and a low of 1.5843. Yesterday, the British Pound rose marginally higher versus the Dollar in the New York session, and closed at 1.5859.

The pair is expected to find its first support at 1.5818 and first resistance at 1.5910.

USD JPY

The USD is trading at 83.96 against the JPY at 09:40 GMT this morning, 0.27% higher from the New York close. The Yen came under pressure after all industry activity in Japan declined more than expected in January. In Japan, the All Industry Activity Index declined 1.0% (MoM) in January, compared to 1.6% rise posted in the previous month. Trading trends in the pair are expected to be determined by release of trade balance data in Japan later today. During the session, the pair traded at a high of 83.98 and a low of 83.54. In the New York session yesterday, USD rose marginally against JPY, and closed at 83.73.

The pair is expected to find its first support at 83.53 and first resistance at 84.18.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9088 against the Swiss Franc, 0.32% lower from the New York close. In Switzerland, M3 money supply climbed 6.4% (YoY) in February, compared to a 7.3% growth in January. During the session, the pair traded at a high of 0.9119 and a low of 0.9078. In the New York session yesterday, USD fell 0.28% against CHF, and closed at 0.9117.

The pair is expected to find its first support at 0.9059 and first resistance at 0.9135.

USD CAD

At 09:40 GMT, the USD is trading at 0.9888 against the CAD, 0.28% lower from the New York close. Canadian dollar is trading higher this morning against greenback, as speculation that the Euro-zone debt crisis risk is fading, raised demand for high yielding assets. During the session, the pair traded at a high of 0.9918 and a low of 0.9875. Yesterday, USD fell 0.16% against CAD in the New York session, and closed at 0.9915.

The pair is expected to find its first support at 0.9852 and first resistance at 0.9946.

AUD USD

The AUD is trading at 1.0497 against the USD, at 09:40 GMT this morning, 0.15% higher from the New York close. In Australia, the Westpac Leading Index rose 0.6% (MoM) in January, compared to 0.7% growth recorded in the previous month. During the session, the pair traded at a high of 1.0528 and a low of 1.0467. AUD fell marginally against USD in the New York session yesterday, and closed at 1.0481.

The pair is expected to find its first support at 1.0460 and first resistance at 1.0530.

Gold

At 09:40 GMT, Gold is trading at $1656.68 per ounce, 0.41% higher from the New York close, amid a broadly weaker dollar. This morning, Gold traded at a high of $1660.33 and a low of $1648.22 per ounce. In the New York session yesterday, the yellow metal rose 0.19%, and closed at $1649.83.

Gold has its first support at $1645.47 and first resistance at $1664.10.

Silver

Silver is trading at $32.28 per ounce, 0.44% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.40 and a low of $32.04. Silver weakened 0.21% against USD in the New York session yesterday, and closed at $32.14.

Silver has its first support at $31.88 and first resistance at $32.60.

Crude Oil

At 09:40 GMT, Oil is trading at $106.65 per barrel, 0.30% higher from the New York close, after reports showed a fall in US crude oil stockpiles. Late Tuesday, American Petroleum Institute (API), reported that the US crude supplies fell 1.4 million barrels for the week ended 16th March. This morning, Oil traded at a high of $106.86 and a low of $106.32. Yesterday, Oil fell 0.63% against USD in the New York session, and closed at $106.37.

It has its first support at $105.49 and first resistance at $107.67.

Economic Snapshot

UK public sector net borrowing widened in February

In the UK, Public Sector Net Borrowing (PSNB) swung to a deficit of £12.91 billion in February, from surplus of £10.16 billion in January.

Policymakers split on asset purchases, indicates BoE minutes

As per the Bank of England (BoE) meeting, the BoE has retained its quantitative easing at £325 billion through a split vote as two members preferred a £25 billion increase in the programme. All members voted to retain a record low 0.5% interest rate.

German Leading Index rose in January

The leading economic index in Germany rose 0.3% to 103.8 in January, compared to a 0.7% growth in December. Additionally, the coincident economic index climbed 0.3% to 106.8 in January.

Swiss money supply growth slowed in February

On an annual basis, M3 money supply in Switzerland rose 6.4% in February, slower than a 7.3% growth recorded in January.

Japan’s all industry activity fell more-than-expected in January

On a monthly basis, all industry activity in Japan dropped more-than-expected by 1.0% in January, compared to a revised 1.6% rise recorded in the previous month.

Australia’s Westpac Leading Index advanced in January

On a month-on-month basis, the Westpac Leading Index in Australia climbed 0.6% in January, compared to a 0.7% rise in December.

PDF- Direct FX_Daily Currency Report 20th March 2012
Forex Market Update

This morning, the greenback is trading higher against the major currencies, reversing its earlier losses.

The Euro is trading lower as investors remained cautious ahead of the meeting of Italian Prime Minister, Mario Monti with union leaders to discuss reforming the country’s labor market that aims to push the country out of the debt crisis and avoid a Greek-style rescue.

Meanwhile in bond auctions, Spain’s borrowing costs declined, continuing the recent trend of successful debt auctions. It sold €3.6 billion of 12-month bills at an average yield of 1.418%, down from 1.899%, while for €1.45 billion of 18-month bills, yield came in at 1.711%, down from 2.3%.

Data released this morning showed that UK annual inflation slowed further in February to the lowest level since November 2010. Meanwhile, Germany’s producer price inflation eased for the fifth month to a 20-month low in February. Elsewhere, Greece is set to raise €1 billion through an auction of 13-week T-Bills.

The Swiss Franc is drifting lower this morning after industrial output in Switzerland declined from last year in the fourth quarter.

The minutes of the latest Reserve Bank of Australia’s (RBA) policy meeting indicated that risks emanating from the Euro-zone debt crisis have probably reduced compared to a few months ago.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3198 against the USD, 0.30% lower from the New York close, as investors remained cautious over the outcome of talks aimed at reforming Italy’s economy. In economic news, the Producer Price Index (PPI) in Germany rose 0.4% (MoM), compared to a 0.6% rise in the previous month. During the session, the pair traded at a high of 1.3244 and a low of 1.3189. Yesterday, the EUR strengthened against the USD by 0.61% in the New York session, and closed at 1.3237.

The pair is expected to find its first support at 1.3143 and first resistance at 1.3259.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5855 against the USD, 0.23% lower from the New York close, ahead of tomorrow’s annual UK budget. Data just released showed that the consumer price annual inflation in the UK decelerated to 3.4% in February, from 3.6% in January, broadly in line with market expectations. Additionally, annual retail price inflation came in at 3.7% in February. During the session, the pair traded at a high of 1.5897 and a low of 1.5836. Yesterday, the British Pound rose 0.10% versus the Dollar in the New York session, and closed at 1.5891.

The pair is expected to find its first support at 1.5820 and first resistance at 1.5902.

USD JPY

The USD is trading at 83.79 against the JPY at 09:40 GMT this morning, 0.47% higher from the New York close, with low trading volume as Japanese financial markets are closed today for a national holiday. During the session, the pair traded at a high of 83.83 and a low of 83.35. In the New York session yesterday, USD rose 0.10% against JPY, and closed at 83.40.

The pair is expected to find its first support at 83.27 and first resistance at 84.08.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9141 against the Swiss Franc, 0.31% higher from the New York close. Swiss Franc is trading lower after industrial output in Switzerland fell 1.4% (YoY) in the fourth quarter, after a revised 1.9% drop in the third quarter. During the session, the pair traded at a high of 0.9147 and a low of 0.9112. In the New York session yesterday, USD fell 0.64% against CHF, and closed at 0.9113.

The pair is expected to find its first support at 0.9096 and first resistance at 0.9182.

USD CAD

At 09:40 GMT, the USD is trading at 0.9914 against the CAD, 0.44% higher from the New York close. During the session, the pair traded at a high of 0.9918 and a low of 0.9869. Yesterday, USD fell 0.52% against CAD in the New York session, and closed at 0.9871. In Canada, wholesale sales unexpectedly fell 1.0% (MoM) in January to C$49.02 billion, making it biggest drop since February 2011.

The pair is expected to find its first support at 0.9875 and first resistance at 0.9939.

AUD USD

The AUD is trading at 1.0498 against the USD, at 09:40 GMT this morning, 1.07% lower from the New York close, on speculation that China’s economic growth would slow, damping demand for Australia’s exports. Initially, AUD advanced after the Reserve Bank of Australia minutes showed that policy makers saw less downside risk to the economy at this month’s meeting. During the session, the pair traded at a high of 1.0625 and a low of 1.0488. AUD rose 0.44% against USD in the New York session yesterday, and closed at 1.0611.

The pair is expected to find its first support at 1.0445 and first resistance at 1.0594.

Gold

At 09:40 GMT, Gold is trading at $1650.06 per ounce, 0.83% lower from the New York close, amid profit booking. This morning, Gold traded at a high of $1664.84 and a low of $1647.79 per ounce. In the New York session yesterday, the yellow metal rose 0.43%, and closed at $1663.93.

Gold has its first support at $1641.89 and first resistance at $1664.14.

Silver

Silver is trading at $32.35 per ounce, 1.69% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.96 and a low of $32.23. Silver strengthened 1.21% against USD in the New York session yesterday, and closed at $32.90.

Silver has its first support at $32.02 and first resistance at $32.88.

Crude Oil

At 09:40 GMT, Oil is trading at $107.29 per barrel, 0.50% lower from the New York close, as signs of increased supply from Saudi Arabia and a return to pre-war exports from Libya eased pressure on the oil prices, while a slowdown in Chinese demand and a stronger dollar also weighed. Investors await the weekly US oil reports from the American Petroleum Institute later today, followed by the US Energy Information Administration release tomorrow. This morning, Oil traded at a high of $107.85 and a low of $107.10. Yesterday, Oil rose 0.25% against USD in the New York session, and closed at $107.85.

It has its first support at $106.48 and first resistance at $108.17.

Economic Snapshot

Consumer price inflation in the UK eased in February

On a year-on-year basis, the Consumer Price Inflation (CPI) in the UK fell to 3.4% in February, the lowest level since November 2010, and following 3.6% in January. Also, on a seasonally adjusted basis, the core CPI fell to 2.4% in February, from 2.6% in January.

UK Retail Price Index edged up in February

On an annual basis, the UK Retail Price Index climbed 3.7% in February, compared to a 3.9% rise in January.

German producer price inflation rose in February

On an annual basis, the Producer Price Index (PPI) in Germany rose 3.2% in February, compared to a 3.4% rise in January.

Swiss industrial production declined in the Q4 FY2011

On an annual basis, industrial production in Switzerland fell 1.4% in the fourth quarter of 2011, compared to a revised 1.9% fall in the previous quarter.

PDF-Direct FX_Daily Currency Report 16th March 2012
Forex Market Update

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

The Federal Reserve Bank of Richmond President, Jeffrey Lacker, stated that the US central bank probably would need to raise interest rates next year to contain inflation as the economy accelerates.

Overnight, positive US economic data boosted sentiment, with the weekly jobless claims showing a bigger-than-expected fall, the New York Federal Reserve’s manufacturing index rising unexpectedly in March and the Philadelphia manufacturing activity increasing more-than-expected for the same month.

However, lack of key catalysts from the euro-area kept traders away from the Euro, though some positive sentiment was generated after the executive board of IMF approved a €28 billion ($36.49 billion) loan for Greece on Thursday.

The Bank of England policy maker, Ben Broadbent, has indicated that easing bank funding conditions and an improvement in credit supply could warrant tighter policy, even if UK private debt levels remain high.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3059 against the USD, 0.15% lower from the New York close, as improving prospects of the US economy eased speculation that the Federal Reserve would add further monetary stimulus. Investors await the release of Euro-zone’s trade balance data which is expected to indicate that the region’s surplus shrank in the month of January. During the session, the pair traded at a high of 1.3099 and a low of 1.3053. Yesterday, the EUR strengthened against the USD by 0.14% in the New York session, and closed at 1.3078.

The pair is expected to find its first support at 1.3025 and first resistance at 1.3106.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5724 against the USD, 0.07% higher from the New York close, recovering yesterday’s losses as improving risk appetite on the back of positive economic data from the US undermined the greenback’s safe haven appeal. According to survey conducted by Knight Frank and Markit Economics, the house price sentiment index in the UK fell to 46.6 in March, from the reading of 43.1 in February, signaling the twenty-first consecutive decline in the index. During the session, the pair traded at a high of 1.5733 and a low of 1.5695. Yesterday, the British Pound rose 0.22% versus the Dollar in the New York session, and closed at 1.5713.

The pair is expected to find its first support at 1.5663 and first resistance at 1.5761.

USD JPY

The USD is trading at 83.75 against the JPY at 09:40 GMT this morning, 0.21% higher from the New York close. Data released this morning indicated that the leading index in Japan was revised down to a reading of 94.4 in January, following an initial estimate of 94.9. Separately, the Bank of Japan (BoJ) minutes showed that the BoJ added another ¥10 trillion to its asset-purchase program. The minutes also showed that some BoJ board members are concerned that increased bond purchases by the central bank may be viewed as financing government deficit spending. During the session, the pair traded at a high of 83.84 and a low of 83.28. In the New York session yesterday, USD rose 0.25% against JPY, and closed at 83.57.

The pair is expected to find its first support at 83.35 and first resistance at 83.99.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9247 against the Swiss Franc, 0.18% higher from the New York close. During the session, the pair traded at a high of 0.9254 and a low of 0.9217. In the New York session yesterday, USD fell 0.32% against CHF, and closed at 0.9230.

The pair is expected to find its first support at 0.9203 and first resistance at 0.9290.

USD CAD

At 09:40 GMT, the USD is trading at 0.9931 against the CAD, 0.12% higher from the New York close. With no economic releases due in Canada today, investors would focus on the outcome of CPI inflation figures and industrial production data from the US ahead in the day. During the session, the pair traded at a high of 0.9941 and a low of 0.9915. Yesterday, USD fell marginally against CAD in the New York session, and closed at 0.9919.

The pair is expected to find its first support at 0.9909 and first resistance at 0.9951.

AUD USD

The AUD is trading at 1.0521 against the USD, at 09:40 GMT this morning, marginally lower from the New York close. During the session, the pair traded at a high of 1.0552 and a low of 1.0510. AUD rose 0.12% against USD in the New York session yesterday, and closed at 1.0527.

The pair is expected to find its first support at 1.0477 and first resistance at 1.0560.

Gold

At 09:40 GMT, Gold is trading at $1648.72 per ounce, 0.55% lower from the New York close, heading for a third straight week of losses, as a brightening economic outlook for the US reduced safe haven status of the precious metal. Additionally, India’s plan to double the import duty on the precious metal also erased some early gains. This morning, Gold traded at a high of $1664.86 and a low of $1648.28 per ounce. In the New York session yesterday, the yellow metal rose 0.73%, and closed at $1657.84.

Gold has its first support at $1636.73 and first resistance at $1663.70.

Silver

Silver is trading at $32.39 per ounce, 0.42% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.75 and a low of $32.36. Silver strengthened 0.74% against USD in the New York session yesterday, and closed at $32.53.

Silver has its first support at $31.94 and first resistance at $32.86.

Crude Oil

At 09:40 GMT, Oil is trading at $105.48 per barrel, marginally lower from the New York close. However during the intraday, oil prices were higher, tracking broad gains in equity markets, with investors shrugging off an overnight selloff triggered by baseless rumors of strategic oil reserve releases by the US and UK. This morning, Oil traded at a high of $105.64 and a low of $105.36. Yesterday, Oil fell 0.43% against USD in the New York session, and closed at $105.51.

It has its first support at $104.11 and first resistance at $106.51.

Economic Snapshot

UK house price sentiment continues to fall

According to survey conducted by Knight Frank and Markit Economics, the house price sentiment index in the UK fell to 46.6 in March, from the reading of 43.1 in February, signalling the twenty-first consecutive decline in the index.

Japanese leading index rose less-than-expected in January

The leading index in Japan has been revised down to a reading of 94.4 in January, following an initial estimate of 94.9 and compared to a reading of 93.3 in December. Meanwhile, the coincident index retreated to a reading of 92.7 in January, from a preliminary estimate of 93.1, and compared to a reading of 93.0 in December.

PDF-

Forex Market Update

This morning, the greenback is trading lower against the major currencies.

The Euro is trading higher, amid hopes that the IMF executive board would approve a €28 billion ($36.49 billion) loan for Greece. Gains in the Euro were further supported after European Union Economic and Monetary Affairs Commissioner, Olli Rehn, mentioned that Portugal is on track to address its fiscal situation and to set the stage for economic growth.

Meanwhile, the European Central Bank (ECB) in its monthly report today stated that it sees signs of stabilization in the Euro-zone economy. However, the ECB also warned of upside risks to inflation as economic growth starts to gradually pick up.

The Swiss Franc trimmed its losses against the greenback, after the Secretariat for Economic Affair’s (SECO’s) economic forecasts report published today indicated that the Swiss economy would recover gradually in the coming months. The March growth forecast for 2012 was set at 0.8% in comparison with the December forecast of 0.5%.

Elsewhere, Foreign Direct Investment (FDI) in China continued its decline and dropped 0.9% to $7.73 billion in February, making it the fourth consecutive monthly decline.

In the day ahead, economic data from the US is expected to show that regional manufacturing expanded and initial jobless claims declined, adding to signs the US economy is gathering momentum.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3067 against the USD, 0.28% higher from the New York close, amid hopes that the International Monetary Fund executive board would approve a €28 billion ($36.49 billion) loan for Greece. During the session, the pair traded at a high of 1.3068 and a low of 1.3004. Yesterday, the EUR weakened against the USD by 0.28% in the New York session, and closed at 1.3031.

The pair is expected to find its first support at 1.3017 and first resistance at 1.3103.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5669 against the USD, marginally higher from the New York close. During the Asian session today morning, the Pound was trading in red, after the Fitch Ratings yesterday, lowered its outlook on UK’s sovereign credit rating to ‘Negative’ from ‘Stable’, citing the weak economic recovery, high debt levels and threats from Europe’s debt crisis. During the session, the pair traded at a high of 1.5677 and a low of 1.5634. Yesterday, the British Pound fell 0.32% versus the Dollar in the New York session, and closed at 1.5667.

The pair is expected to find its first support at 1.5624 and first resistance at 1.5725.

USD JPY

The USD is trading at 83.67 against the JPY at 09:40 GMT this morning, marginally lower from the New York close. During the session, the pair traded at a high of 84.18 and a low of 83.52. In the New York session yesterday, USD rose 0.15% against JPY, and closed at 83.70.

The pair is expected to find its first support at 83.27 and first resistance at 84.12.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9268 against the Swiss Franc, 0.42% lower from the New York close. Swiss Franc is trading higher against greenback, following reports from Secretariat for Economic Affairs (SECO) that it has raised 2012 forecast of Swiss economy. Separately, the Swiss National Bank (SNB) decided to maintain its three-month Libor rate close to zero as expected and stated that it would continue to enforce the minimum exchange rate of CHF1.20 per Euro. During the session, the pair traded at a high of 0.9335 and a low of 0.9265. In the New York session yesterday, USD rose 0.46% against CHF, and closed at 0.9307.

The pair is expected to find its first support at 0.9232 and first resistance at 0.9319.

USD CAD

At 09:40 GMT, the USD is trading at 0.9922 against the CAD, marginally lower from the New York close. During the session, the pair traded at a high of 0.9949 and a low of 0.9916. Yesterday, USD rose 0.21% against CAD in the New York session, and closed at 0.9927. The Canadian Dollar came under pressure following weaker-than-expected capacity utilization data in Canada. Additionally, falling crude oil prices also weighed on Loonie.

The pair is expected to find its first support at 0.9889 and first resistance at 0.9952.

AUD USD

The AUD is trading at 1.0493 against the USD, at 09:40 GMT this morning, 0.43% higher from the New York close, after reports showed that consumer inflation expectation in Australia rose to 2.7% in March, compared to a rise of 2.5% in February, while on monthly basis new motor vehicle sales remained flat in January. During the session, the pair traded at a high of 1.0505 and a low of 1.0423. AUD fell 0.26% against USD in the New York session yesterday, and closed at 1.0449.

The pair is expected to find its first support at 1.0443 and first resistance at 1.0524.

Gold

At 09:40 GMT, Gold is trading at $1647.16 per ounce, 0.22% higher from the New York close, as bargain hunters brought the precious metal back into positive territory after yesterday’s sharp fall. This morning, Gold traded at a high of $1650.12 and a low of $1636.21 per ounce. In the New York session yesterday, the yellow metal declined 0.08%, and closed at $1643.62.

Gold has its first support at $1633.60 and first resistance at $1661.77.

Silver

Silver is trading at $32.34 per ounce, 0.46% higher from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $32.45 and a low of $31.97. Silver weakened 2.40% against USD in the New York session yesterday, and closed at $32.19.

Silver has its first support at $31.58 and first resistance at $33.16.

Crude Oil

At 09:40 GMT, Oil is trading at $105.71 per barrel, flat from the New York close. This morning, Oil traded at a high of $105.95 and a low of $105.26. Yesterday, Oil fell 0.62% against USD in the New York session, and closed at $105.67, after US crude stockpiles rose more-than-expected by 1.8 million barrels last week to 347.5 million barrels, the highest level in six months. Additionally, news that Saudi Arabia has pledged to make up for any shortage in Iranian shipments, also weighed on crude oil prices.

It has its first support at $104.88 and first resistance at $106.78.

Economic Snapshot

ECB sees slow recovery ahead

In its Monthly Report, the European Central Bank (ECB) stated that adverse factors would weigh on economic activity in the Euro-zone in the first half of 2012, but real gross domestic product (GDP) growth is expected to pick up modestly in the second half.

SNB maintains Franc ceiling at 1.20 versus Euro

The Swiss National Bank (SNB) maintained its three-month Libor rate at 0.0% – 0.3% and indicated that it would continue to enforce the minimum exchange rate of CHF1.2 per Euro. The bank also stated that it is prepared to buy foreign currency in unlimited quantities and maintain liquidity in the money market at an exceptionally high level.

Swiss government raised its 2012 growth outlook

In its latest report, the State Secretariat for Economic Affairs (SECO) has revised up its forecast for the Swiss Gross Domestic Product (GDP) this year to 0.8% from 0.5% forecasted in December. Also, the growth prediction for 2013 was lowered marginally to 1.8% from 1.9%. The report also indicated that a further deterioration in economic activity is unlikely and the government expects exports to grow much faster than estimated in December.

New condo supply up 13% in Tokyo area in February

On an annual basis, condominium sales in Tokyo, Japan, rose 13.0% in February, from 32.6% in January

Australia consumer inflation expectations rose in March

In Australia, the consumer inflation expectation rose to 2.7% in March, compared to 2.5% in February.

PDF-Direct FX_Daily Currency Report 14th March 2012

Forex Market Update

The greenback is trading higher this morning against the major currencies, boosted by strong overnight US economic data as well as relatively upbeat assessment of the US economy by the Federal Reserve yesterday.

The Euro is trading on a weaker footing against the US Dollar this morning as market speculation of further easing in the US economy faded after the US Federal Reserve made no mention of a need to consider additional monetary support.

The jobless claims in the UK rose more than forecast in February and the three-month unemployment rate remained at the highest in 16 years, underscoring the weakness in the labor market even as the recent run of mostly positive economic data showed some signs of recovery.

Data released earlier today indicated that the consumer sentiment in Australia declined in March, leading to losses for the Australian Dollar against the USD. Aussie was further pressurized after housing starts in Australia fell more-than-expected by 6.9% (QoQ) in December.

Meanwhile, Standard & Poor’s forecasted that China’s economy would likely expand 8.3% in 2012. Separately, Chinese Premier Wen Jiabao stated that home prices remain far from a reasonable level and relaxing curbs could cause “chaos” in the market, indicating no imminent relaxation of cooling measures.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3060 against the USD, 0.16% lower from the New York close. Euro is likely to receive increased market attention, with consumer price inflation and industrial production data due to be released later today in the Euro-zone. Markets expect inflation to rise amid rising crude oil prices and following the ECB’s upward revision of its inflation target for the current year. During the session, the pair traded at a high of 1.3090 and a low of 1.3031. Yesterday, the EUR strengthened against the USD by 0.15% in the New York session, and closed at 1.3080.

The pair is expected to find its first support at 1.3010 and first resistance at 1.3132.

GBP USD

At 09:40 GMT, the GBP is trading unchanged at 1.5705 against the USD, from the New York close, amid release of weak UK employment data. Data released in the UK showed that the number of people claiming jobseeker’s allowance rose by 7,200 to 1.61 million in February, against the market expectation of an increase of 5,000. Meanwhile, the claimant count rate remained unchanged at 5.0%. Additionally, the number of unemployed persons rose by 28,000 in the three months to January, for an unemployment rate of 8.4%. During the session, the pair traded at a high of 1.5744 and a low of 1.5650. Yesterday, the British Pound rose 0.52% versus the Dollar in the New York session, and closed at 1.5704.

The pair is expected to find its first support at 1.5635 and first resistance at 1.5761.

USD JPY

The USD is trading at 83.37 against the JPY at 09:40 GMT this morning, 0.57% higher from the New York close. The Japanese Yen came under pressure, after data indicated that large manufacturers’ business sentiment worsened for the first quarter. Additionally, industrial production growth slowed for January, while machine tool orders declined sharply for February. During the session, the pair traded at a high of 83.50 and a low of 82.88. In the New York session yesterday, USD rose 0.09% against JPY, and closed at 82.90.

The pair is expected to find its first support at 82.76 and first resistance at 83.74.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9269 against the Swiss Franc, 0.36% higher from the New York close. Trading trends in the pair today are expected to be determined by ZEW expectation survey in the Switzerland. During the session, the pair traded at a high of 0.9276 and a low of 0.9231. In the New York session yesterday, USD rose marginally against CHF, and closed at 0.9235.

The pair is expected to find its first support at 0.9200 and first resistance at 0.9307.

USD CAD

At 09:40 GMT, the USD is trading at 0.9929 against the CAD, 0.42% higher from the New York close. During the session, the pair traded at a high of 0.9939 and a low of 0.9883. Yesterday, USD fell 0.23% against CAD in the New York session, and closed at 0.9887.

The pair is expected to find its first support at 0.9894 and first resistance at 0.9952.

AUD USD

The AUD is trading at 1.0480 against the USD, at 09:40 GMT this morning, 0.60% lower from the New York close, after the Westpac Consumer Sentiment Index in Australia fell to 96.1 in March, from 101.1 in February. To add to negative sentiment, the housing starts fell 6.9% (QoQ) in the fourth quarter of 2011. During the session, the pair traded at a high of 1.0556 and a low of 1.0466. AUD rose 0.36% against USD in the New York session yesterday, and closed at 1.0543.

The pair is expected to find its first support at 1.0445 and first resistance at 1.0535.

Gold

At 09:40 GMT, Gold is trading at $1657.02 per ounce, 1.04% lower from the New York close, as investors sold the precious metal in favor of the US Dollar after Fed Chairman, Ben Bernanke offered no clues on whether there would be another round of monetary easing. This morning, Gold traded at a high of $1682.43 and a low of $1654.98 per ounce. In the New York session yesterday, the yellow metal declined 0.79%, and closed at $1674.36.

Gold has its first support at $1640.64 and first resistance at $1687.74.

Silver

Silver is trading at $32.80 per ounce, 1.63% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $33.46 and a low of $32.69. Silver strengthened 0.12% against USD in the New York session yesterday, and closed at $33.34.

Silver has its first support at $32.40 and first resistance at $33.49.

Crude Oil

At 09:40 GMT, Oil is trading at $106.23 per barrel, 0.50% lower from the New York close, after the International Energy Agency (IEA) stated that oil supply from non-OPEC countries would grow less-than-expected in the first quarter of 2012, leaving its global oil demand growth forecast unchanged. Late yesterday, American Petroleum Institute reported that crude oil inventories rose 2.8 million barrels in the week ended 9th March. This morning, Oil traded at a high of $106.91 and a low of $106.12. Yesterday, Oil rose 0.09% against USD in the New York session, and closed at $106.76.

It has its first support at $105.48 and first resistance at $107.16.

Economic Snapshot

UK jobless claims increased more-than-forecast in February

The unemployment-benefit claims in the UK rose by 7,200 to 1.61 million in February, compared to a rise of 7,000 in January. Meanwhile, the number of unemployed persons rose by 28,000 in the three months ended January. Additionally, ILO unemployment rate stood unchanged at 8.4%. Also, average earnings, including bonuses, grew 1.4% (YoY) in the three months ending in January.

Japan’s industrial output growth revised down in January

On a monthly basis, the industrial production in Japan was downwardly revised to 1.9% in January, lower than the preliminary reading of 2.0%. Meanwhile, the capacity utilization index rose 3.4% (MoM) in January, compared to a 3.1% rise in December.

Japan machine tool orders drop in February

On an annual basis, machine tool orders in Japan declined 8.6% in February, compared to 6.9% drop in January.

PDF-Direct FX_Daily Currency Report 13th March 2012

Forex Market Update

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

The Euro is trading on a weaker footing this morning, with optimism on the news that Euro-zone finance ministers have approved the second bailout for Greece giving way to concerns as Spain faced calls to make deeper budget cuts in order to prevent the debt crisis in the region from worsening.

Worries surrounding the UK economy seem to be easing following the recent run of mostly positive economic data. Data released earlier today indicated that RICS House Price Index posted strongest reading in 19 months in February. Moreover, data just released showed that the trade deficit in the UK widened less than expected in January, and the UK DCLG Housing Price Index also grew in January.

The Statistical Office Insee indicated this morning, that French inflation, as measured by the harmonized index of consumer prices, fell slightly in February. Meanwhile, the Swiss producer and import prices declined less than expected in February.

In Asia, the Bank of Japan, kept interest rates unchanged at a range of zero to 0.1%, as widely expected. It also held off from conducting any further expansion of its asset-buying programme.

The US Federal Reserve is set to announce its latest decision on interest rates later today, and while no changes are expected, market participants are expected to pay close attention to the central bank’s tone.

The greenback traded mostly lower in the New York session on Friday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3144 against the USD, 0.07% lower from the New York close, as sentiment remained fragile after Spain faced calls to make deeper budget cuts in order to prevent the debt crisis in the region from worsening. On economic front, the French current account deficit widened to €4.2 billion in January, from a deficit of €2.8 billion in December. During the session, the pair traded at a high of 1.3192 and a low of 1.3128. Yesterday, the EUR strengthened against the USD by 0.23% in the New York session, and closed at 1.3153.

The pair is expected to find its first support at 1.3101 and first resistance at 1.3190.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5651 against the USD, 0.07% higher from the New York close, after the Royal Institution of Chartered Surveyors (RICS) reported that the House Price Balance Index in the UK rose to a reading of -13.0 in February, marking the highest level since July 2010 and compared to a reading of -16.0 posted in January. UK Trade deficit widened to £7.5 billion in January. Market had expected the deficit to widen to £7.9 billion. Moreover, UK DCLG Housing Price Index grew 0.2% (YoY) in January. During the session, the pair traded at a high of 1.5671 and a low of 1.5635. Yesterday, the British Pound rose marginally versus the Dollar in the New York session, and closed at 1.5640.

The pair is expected to find its first support at 1.5607 and first resistance at 1.5692.

USD JPY

The USD is trading at 82.62 against the JPY at 09:40 GMT this morning, 0.42% higher from the New York close, after the Bank of Japan held its key rate steady and did not announce further policy easing. In Japan, the Tertiary Industry Index fell 1.7% (MoM) in January, compared to an upwardly revised 1.8% increase reported in December. During the session, the pair traded at a high of 82.79 and a low of 81.97. In the New York session yesterday, USD rose 0.07% against JPY, and closed at 82.27.

The pair is expected to find its first support at 82.13 and first resistance at 82.95.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9176 against the Swiss Franc, 0.10% higher from the New York close. In Switzerland, producer and import prices in Switzerland fell 1.9% (YoY) in February, slower than the forecast for a 2.4% drop, and compared to a 2.4% drop in January. During the session, the pair traded at a high of 0.9186 and a low of 0.9141. In the New York session yesterday, USD fell 0.23% against CHF, and closed at 0.9167.

The pair is expected to find its first support at 0.9143 and first resistance at 0.9205.

USD CAD

At 09:40 GMT, the USD is trading at 0.9899 against the CAD, 0.25% lower from the New York close. During the session, the pair traded at a high of 0.9925 and a low of 0.9897. Yesterday, USD fell 0.08% against CAD in the New York session, and closed at 0.9925.

The pair is expected to find its first support at 0.9882 and first resistance at 0.9932.

AUD USD

The AUD is trading at 1.0545 against the USD, at 09:40 GMT this morning, 0.26% higher from the New York close. In Australia, the Home Loan approvals fell 1.2% in January. The Business Confidence Index fell to a reading of 1.0 in February. The business conditions index, meanwhile, improved to 3.0. Trading trends in the pair today are expected to be determined by the release of Australian consumer confidence. During the session, the pair traded at a high of 1.0561 and a low of 1.0512. AUD rose 0.19% against USD in the New York session yesterday, and closed at 1.0517.

The pair is expected to find its first support at 1.0492 and first resistance at 1.0579.

Gold

At 09:40 GMT, Gold is trading at $1699.67 per ounce, 0.14% lower from the New York close, tad lower from its crucial level of $1700 per ounce and ahead of the outcome of a key meeting of Federal Reserve policymakers later in the day. This morning, Gold traded at a high of $1705.82 and a low of $1696.81 per ounce. In the New York session yesterday, the yellow metal rose 0.18%, and closed at $1702.08.

Gold has its first support at $1692.05 and first resistance at $1707.76.

Silver

Silver is trading at $33.66 per ounce, 0.20% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $33.83 and a low of $33.45. Silver weakened 0.32% against USD in the New York session yesterday, and closed at $33.72.

Silver has its first support at $33.30 and first resistance at $34.07.

Crude Oil

At 09:40 GMT, Oil is trading at $106.92 per barrel, 0.30% higher from the New York close. Investors await the oil inventory reports later today and tomorrow to offer direction to oil prices. This morning, Oil traded at a high of $107.13 and a low of $106.50. Yesterday, Oil rose 0.48% against USD in the New York session, and closed at $106.55.

It has its first support at $105.82 and first resistance at $107.57.

Economic Snapshot

UK house prices rose in February, indicates RICS

The Royal Institution of Chartered Surveyors (RICS) reported that, on a seasonally adjusted basis, the House Price Balance Index in the UK rose to a reading of -13.0 in February, marking the highest level since July 2010 and compared to a reading of -16.0 posted in January.

UK DCLG House Price Index rose in January

On an annual basis, the DCLG House Price Index in the UK climbed 0.2% in January, compared to a 0.1% rise in December.

UK Trade deficit widens less-than-expected in January

The visible trade deficit in the UK widened to £7.5 billion in January, from £7.2 billion in December. Market had expected the deficit to widen to £7.9 billion. Also, the Non-EU trade deficit widened to £3.7 billion in January, from £3.6 billion in December.

France’s HICP inflation slowed slightly in February

Consumer prices in France rose 0.4% (MoM) in February, from a 0.4% fall in January. At the same time, annual inflation held steady at 2.3%, but slightly slower-than-expected rate of 2.4%. The harmonized index of consumer prices or HICP, measured under the EU methodology, rose 2.5% in February from a year ago, compared with a 2.6% increase in January. Market expected the annual rate to remain stable at 2.6%. Month-on-month, the HICP moved up 0.5%, in line with economists’ forecast.

French current account deficit widens in January

In France, the current account deficit widened to €4.2 billion in January, from a deficit of €2.8 billion in December.

Switzerland producer & import prices index fells less-than-expected in February

On an annual basis, producer and import prices in Switzerland fell 1.9% in February, slower than the forecast for a 2.4% drop, and compared to a 2.4% decline in January.

Bank of Japan holds rates steady

The Bank of Japan kept its monetary policy steady, with interest rates unchanged in the range of zero to 0.1%, as widely expected. It also held off from conducting any further expansion of its asset-buying program.

PDF-Direct FX_Daily Currency Report 12th March 2012

Forex Market Update

This morning, the greenback is trading lower against the major currencies.

The Euro was trading lower in the early Asian session, as growing skepticism about the fact that the Greek bailout fails to address the country’s underlying problems weighed on investor sentiment.

On Sunday, the European Central Bank Executive Board member, Benoit Coeure, stated that the Euro-zone would go through a “very mild recession” in 2012 and would rebound to modest growth next year.

Later in the day, Euro-zone finance ministers are expected to hold talks in Brussels, to give their final approval to a €130 billion bailout for Greece.

Data released this morning showed that Consumer Confidence Index in Japan declined in February, in comparison with previous month. Meanwhile, the Domestic Corporate Goods Price Index rose in February, compared to drop in previous month.

Investor sentiment was also dampened in part after trade deficit in the China came in at $31.48 billion in February, the highest since 1989, compared to deficit of $5.35 billion estimated by the market.

The greenback traded mostly lower in the New York session on Friday against the key currencies.

EUR USD

This morning at 09:40 GMT, the EUR is trading at 1.3131 against the USD, 0.05% higher from the New York close. In Germany, the Wholesale Price Index rose 1.0% (MoM) in February, following a 1.2% increase in January. During the session, the pair traded at a high of 1.3136 and a low of 1.3079. On Friday, the EUR weakened against the USD by 0.59% in the New York session, and closed at 1.3124.

The pair is expected to find its first support at 1.3063 and first resistance at 1.3215.

GBP USD

At 09:40 GMT, the GBP is trading at 1.5685 against the USD, 0.06% higher from the New York close, following signs of improvement in the UK economy. The Lloyds Employment Confidence Index climbed to -69.0 in February. In another positive sign for the economic recovery, the Federation of Small Businesses’ (FSB’s) Small Business index bounced back from a low of -24.5 in the final three months of 2011 to a positive reading of 2.2 in the first quarter. Meanwhile a confidence index by the BDO accountants’ group leapt 3.9 points to a score of 98.0 in February. During the session, the pair traded at a high of 1.5696 and a low of 1.5657. On Friday, the British Pound fell 0.70% versus the Dollar in the New York session, and closed at 1.5675.

The pair is expected to find its first support at 1.5626 and first resistance at 1.5775.

USD JPY

The USD is trading at 82.25 against the JPY at 09:40 GMT this morning, 0.27% lower from the New York close. The Yen is trading higher after Japan’s core machinery orders rose in January. Data released this morning showed that the core machine orders in Japan climbed a seasonally adjusted 3.4% (MoM) in January, compared to a fall of 7.1% in December. Meanwhile, the Consumer Sentiment Index in Japan retreated to a reading of 39.5 in February, compared to a reading of 40.0 in January. During the session, the pair traded at a high of 82.52 and a low of 82.12. In the New York session on Friday, USD rose 0.84% against JPY, and closed at 82.47.

The pair is expected to find its first support at 81.77 and first resistance at 82.69.

USD CHF

This morning at 09:40 GMT, the USD is trading at 0.9183 against the Swiss Franc, marginally lower from the New York close. During the session, the pair traded at a high of 0.9219 and a low of 0.9179. In the New York session on Friday, USD rose 0.61% against CHF, and closed at 0.9187.

The pair is expected to find its first support at 0.9123 and first resistance at 0.9231.

USD CAD

At 09:40 GMT, the USD is trading at 0.9905 against the CAD, marginally lower from the New York close. During the session, the pair traded at a high of 0.9929 and a low of 0.9901. On Friday, USD fell 0.21% against CAD in the New York session, and closed at 0.9906.

The pair is expected to find its first support at 0.9873 and first resistance at 0.9937.

AUD USD

The AUD is trading at 1.0536 against the USD, at 09:40 GMT this morning, 0.38% lower from the New York close, after reports showed that Chinese economy slowed in February and posted a high trade deficit. China recorded a trade deficit $31.5 billion in February, compared to a surplus of $27.3 billion in January. During the session, the pair traded at a high of 1.0576 and a low of 1.0510. AUD fell 0.46% against USD in the New York session on Friday, and closed at 1.0576.

The pair is expected to find its first support at 1.0482 and first resistance at 1.0619.

Gold

At 09:40 GMT, Gold is trading at $1707.60 per ounce, 0.37% lower from the New York close, amid profit booking. This morning, Gold traded at a high of $1715.33 and a low of $1702.49 per ounce. In the New York session on Friday, the yellow metal rose 0.81%, and closed at $1713.89.

Gold has its first support at $1684.51 and first resistance at $1723.01.

Silver

Silver is trading at $34.08 per ounce, 0.61% lower from the New York close, at 09:40 GMT this morning. This morning, Silver traded at a high of $34.32 and a low of $33.82. Silver strengthened 1.16% against USD in the New York session on Friday, and closed at $34.29.

Silver has its first support at $33.33 and first resistance at $34.62

Crude Oil

At 09:40 GMT, Oil is trading at $106.67 per barrel, 0.50% lower from the New York close, as China posted its largest trade deficit in at least a decade, raising concerns that slowing exports from the nation would lead to lower fuel demand. This morning, Oil traded at a high of $107.3 and a low of $106.53. On Friday, Oil rose 0.35% against USD in the New York session, and closed at $107.21.

It has its first support at $105.81 and first resistance at $107.87.

Economic Snapshot

UK Lloyds employment confidence rose in February

The Lloyds Employment Confidence Index climbed to -69.0 in February, from -73.0 in January.

German wholesale price inflation advanced in February

On a monthly basis, the German Wholesale Price Index climbed 1.0% in February, compared to a 1.2% rise in January.

Consumer sentiment in Japan declined unexpectedly in February

The Consumer Sentiment Index in Japan retreated to a reading of 39.5 in February, compared to a reading of 40.0 in January. Market expected the index to rise to 40.5.

PDF-Direct FX_Daily Currency Report 9th March 2012

Forex Market Update

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

Greece has successfully completed the debt swap agreement with 85.8% of private investors holding its Greek-law bonds voluntarily accepting the bond swap offer and that the rate would rise to 95.7% with the use of a “Collective Action Clause (CACs)” to enforce the deal.

Meanwhile, a special committee of the International Swaps and Derivatives Association (ISDA) is expected to meet today to decide whether the Greece debt swap constitutes a credit event.

Data released this morning indicated that Germany’s manufacturing turnover rose slightly in January, while the nation’s trade surplus increased to €13.1 billion in January from €12.9 billion. Earlier in the day, German consumer prices rose 2.3% (YoY) in February, in line with the initial estimates. In France, industrial and manufacturing output increased less than analysts’ expectation in January.

China’s consumer prices rose at their slowest pace in 20 months in February, with inflation easing below the benchmark deposit rates for the first time in two years, suggesting that more monetary easing could be on its way.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3227 against the USD, 0.34% lower from the New York close, reversing its initial session gains after Greece indicated that it has activated the Collective Action Clauses (CACs) to achieve its target of 95.7% participation rate, sparking concerns that CACs might trigger the payment of credit-default swaps. During the session, the pair traded at a high of 1.3278 and a low of 1.3213. Yesterday, the EUR strengthened against the USD by 0.18% in the New York session, and closed at 1.3272.

The pair is expected to find its first support at 1.3195 and first resistance at 1.3276.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5772 against the USD, 0.36% lower from the New York close. The US Dollar has strengthened ahead of the release of US Nonfarm payrolls data and the outcome of the ISDA meeting later today. Data just released today morning indicated that UK’s monthly industrial production for January fell compared to December, while input and output producer price inflation rose more than expected for February. During the session, the pair traded at a high of 1.5833 and a low of 1.5751. Yesterday, the British Pound rose 0.20% versus the Dollar in the New York session, and closed at 1.5829.

The pair is expected to find its first support at 1.5737 and first resistance at 1.5820.

USD JPY

The USD is trading at 81.78 against the JPY at 10:40 GMT this morning, 0.25% higher from the New York close. The Yen is trading lower, amid speculation that the Bank of Japan (BoJ) would ease monetary policy further to boost the economy. The Japanese Finance Minister, Jun Azumi stated that he expects the BoJ to take “appropriate” steps. During the session, the pair traded at a high of 81.9 and a low of 81.47. In the New York session yesterday, USD fell 0.13% against JPY, and closed at 81.58.

The pair is expected to find its first support at 81.44 and first resistance at 82.01.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9114 against the Swiss Franc, 0.32% higher from the New York close. During the session, the pair traded at a high of 0.9125 and a low of 0.9080. In the New York session yesterday, USD fell 0.14% against CHF, and closed at 0.9085.

The pair is expected to find its first support at 0.9081 and first resistance at 0.9136.

USD CAD

At 10:40 GMT, the USD is trading at 0.9917 against the CAD, 0.15% higher from the New York close. Canadian dollar is trading lower this morning. Yesterday, the Bank of Canada, kept its key interest rate unchanged at 1.0%, and stated that recent developments indicated that the outlook for the Canadian economy had “marginally improved” since the bank’s last policy meeting in January. During the session, the pair traded at a high of 0.9921 and a low of 0.9893. Yesterday, USD fell 0.51% against CAD in the New York session, and closed at 0.9903.

The pair is expected to find its first support at 0.9886 and first resistance at 0.9955.

AUD USD

The AUD is trading at 1.0626 against the USD, at 10:40 GMT this morning, 0.16% lower from the New York close, after Australian trade balance showed a deficit of A$673 million in February, from a revised A$1325 million surplus in January. During the session, the pair traded at a high of 1.0664 and a low of 1.0618. AUD fell marginally against USD in the New York session yesterday, and closed at 1.0643.

The pair is expected to find its first support at 1.0588 and first resistance at 1.0667.

Gold

At 10:40 GMT, Gold is trading at $1700.05 per ounce, marginally higher from the New York close, as optimism about a Greek debt deal helped spur buying across commodity markets. This morning, Gold traded at a high of $1706.99 and a low of $1697.14 per ounce. In the New York session yesterday, the yellow metal rose 0.14%, and closed at $1700.08.

Gold has its first support at $1690.41 and first resistance at $1708.34.

Silver

Silver is trading at $33.86 per ounce, tad lower from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $34.11 and a low of $33.73. Silver weakened 0.30% against USD in the New York session yesterday, and closed at $33.88.

Silver has its first support at $33.44 and first resistance at $34.21.

Crude Oil

At 10:40 GMT, Oil is trading at $106.9 per barrel, 0.1% higher from the New York close, amid ongoing concerns between Iran and the West over the former’s nuclear program. This morning, Oil traded at a high of $107.32 and a low of $106.56. Yesterday, Oil rose 0.14% against USD in the New York session, and closed at $106.83.

It has its first support at $106.05 and first resistance at $107.53.

Economic Snapshot

UK industrial production fell in January

On a monthly basis, industrial production in the UK declined 0.4% in January, compared to a 0.4% gain in December. Market had expected a 0.3% rise in January. Additionally, manufacturing output in the UK rose 0.1% (MoM) in January, from 1.1% in December. Market had expected manufacturing output to rise 0.3% in January.

UK output price inflation accelerates in February

In the UK, PPI-Output grew 4.1% (YoY) in February, after increasing 4.0% in January. Additionally, PPI-Input grew 7.3% (YoY) in February, following a 6.6% rise in January.

Germany inflation unrevised in February

In Germany, consumer prices rose 2.3% (YoY) in February, in line with the initial estimates. Additionally, the harmonized index of consumer prices rose 2.5% (YoY) in February, unrevised from the preliminary estimates.

German trade balance surplus widened in January

The German trade balance surplus widened to €13.1 billion in January, from €12.9 billion in December. On a monthly basis, exports grew 2.3% in January, following a 4.4% drop in December. Additionally, imports rose 2.4% (MoM) in January, from a 3.9% decline in December.

French industrial production rises in January

On a month-on-month basis, industrial production in France rose 0.3% in January, compared to a 1.3% drop in December. Market had expected industrial production to decline 0.5% in January. Additionally, manufacturing production in France rose 0.2% (MoM) in January, compared to a 1.3% drop in December. Market had expected manufacturing production to rise 0.5% in January.

PDF- Direct FX_Daily Currency Report 8th March 2012

Forex Market Update

This morning, the greenback is trading lower against the major currencies, as investors’ confidence increased about high private-sector participation in a Greek bond-swap deal.

Meanwhile, the Bank of France stated that the French economic activity is likely to remain sluggish in the near term in both industry and the services.

The Yen is trading lower after Japan’s current account swung to a record deficit in January. Additionally, Bank of Japan Governor, Masaaki Shirakawa stated that the central bank would do its utmost to beat deflation and keep a close eye on the economic and price outlook, signaling readiness to loosen monetary policy again if needed to support the economy.

The Australian dollar has gained strength this morning, amid increased risk appetite, as hopes for a successful Greek debt swap deal overweighed poor Australian employment data.

Investors are awaiting rate decisions in Europe and the UK and the final outcome of the Greek debt swap, later today.

The greenback traded mostly lower against the major currencies in the New York session yesterday.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3213 against the USD, 0.49% higher from the New York close, on optimism of high private-sector participation in a Greek bond-swap deal. The trade deficit in France widened to €5.3 billion in January, compared to a deficit of €5.1 billion in February. During the session, the pair traded at a high of 1.3227 and a low of 1.3136. Yesterday, the EUR strengthened against the USD by 0.21% in the New York session, and closed at 1.3148.

The pair is expected to find its first support at 1.3130 and first resistance at 1.3261.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5804 against the USD, 0.41% higher from the New York close, ahead of the Bank of England (BoE) interest rate decision. During the session, the pair traded at a high of 1.5832 and a low of 1.5725. Yesterday, the British Pound rose 0.12% versus the Dollar in the New York session, and closed at 1.5740.

The pair is expected to find its first support at 1.5724 and first resistance at 1.5858.

USD JPY

The USD is trading at 81.47 against the JPY at 10:40 GMT this morning, 0.46% higher from the New York close. Yen is trading lower against greenback, after Japan’s current account balance swung to a record deficit of ¥437.3 billion in January, marking its first shortfall since January 2009. Additionally, the Gross Domestic Product (GDP) in Japan fell 0.2% in fourth quarter of 2011, compared to 0.6% decline in the previous quarter. During the session, the pair traded at a high of 81.57 and a low of 81.08. In the New York session yesterday, USD rose 0.50% against JPY, and closed at 81.10.

The pair is expected to find its first support at 80.90 and first resistance at 81.81.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9126 against the Swiss Franc, 0.44% lower from the New York close. Data released this morning showed that Consumer Price Index (CPI) in Switzerland rose 0.3% (MoM) in February, compared to a 0.4% decline in the previous month. During the session, the pair traded at a high of 0.9176 and a low of 0.9114. In the New York session yesterday, USD fell 0.20% against CHF, and closed at 0.9166.

The pair is expected to find its first support at 0.9093 and first resistance at 0.9181.

USD CAD

At 10:40 GMT, the USD is trading at 0.9953 against the CAD, 0.24% lower from the New York close. Bank of Canada (BoC) interest rate decision is keenly awaited by market traders, along with other economic releases in Canada to be released later today. During the session, the pair traded at a high of 0.9991 and a low of 0.9943. Yesterday, USD fell 0.42% against CAD in the New York session, and closed at 0.9977.

The pair is expected to find its first support at 0.9922 and first resistance at 1.0005.

AUD USD

The AUD is trading at 1.0649 against the USD, at 10:40 GMT this morning, 0.64% higher from the New York close. On the economic front, unemployment rate in Australia rose to 5.2% in February, as compared to 5.1% in January. During the session, the pair traded at a high of 1.0657 and a low of 1.0534. AUD rose 0.25% against USD in the New York session yesterday, and closed at 1.0581.

The pair is expected to find its first support at 1.0569 and first resistance at 1.0693.

Gold

At 10:40 GMT, Gold is trading at $1701.41 per ounce, 0.98% higher from the New York close, as greenback weakened ahead of Greece debt swap deal deadline today. This morning, Gold traded at a high of $1704.06 and a low of $1683.17 per ounce. In the New York session yesterday, the yellow metal rose 0.29%, and closed at $1684.87.

Gold has its first support at $1681.50 and first resistance at $1712.70.

Silver

Silver is trading at $34.05 per ounce, 1.85% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $34.16 and a low of $33.34. Silver strengthened 1.12% against USD in the New York session yesterday, and closed at $33.43.

Silver has its first support at $33.18 and first resistance at $34.54.

Crude Oil

At 10:40 GMT, Oil is trading at $106.97 per barrel, 0.70% higher from the New York close, amid continuing fears of supply disruptions from Iran. This morning, Oil traded at a high of $107.16 and a low of $105.91. Yesterday, Oil rose 1.03% against USD in the New York session, and closed at $106.19. The US Energy Information Administration reported that the US crude oil inventories rose 832,000 barrels for the week ended 2nd March.

Crude Oil has its first support at $105.16 and first resistance at $107.97.

Economic Snapshot

French payroll employment declined in Q4FY2011

On a quarterly basis, payroll employment in France fell 0.1% or by 22,600 jobs in Q4FY2011, compared to a 0.2% drop in the Q3FY2011.

France trade deficit widened in February

The trade deficit in France widened to €5.3 billion in January, compared to a deficit of €5.1 billion in February. Market expected a deficit of €5.2 billion.

Bank of France business sentiment edged down in February

The French business sentiment indicator retreated to a reading of 95.0 in February, compared to a reading of 96.0 in January.

Switzerland consumer prices rose in February

The Consumer Price Index (CPI) in Switzerland climbed 0.3% (MoM) in February, compared to a 0.4% decline in the previous month.

Japan Eco Watchers’ Current Condition Index improved in February

Eco Watchers’ survey indicated that the current conditions index rose to 45.9 in February, compared to 44.1 in January. Additionally, the outlook index rose to 50.1 in February, compared to 47.1 in January.

PDF-Direct FX_Daily Currency Report 7th March 2012
Forex Market Update

This morning, the greenback is trading lower against the major currencies.

The Euro is trading higher against the greenback, on investors’ speculation that private investors would accept terms of Greek bond exchange needed for the country to receive a second rescue package.

Investor sentiment was also boosted, after European Economic Affairs Commissioner, Olli Rehn, stated that Greece’s debt swap should take place “without a hitch”.

The Pound came under pressure initially, after a survey by the British Retail Consortium indicated that UK shop price inflation for February eased to a near two year low.

The Australian dollar is trading higher, reversing its Asian session losses, which resulted from data indicating that Australian economy grew at a disappointingly slow 0.4% in last quarter of 2011.

Data released this morning indicated that the German industrial orders logged an unexpected fall of 2.7% in January from a month ago. Additionally the Swiss unemployment rate remained steady in February. The leading index in Japan rose in January, while the coincident index showed a decline.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3152 against the USD, 0.27% higher from the New York close, on speculation that private investors would accept terms of the Greek bond exchange needed to receive a second rescue package. During the session, the pair traded at a high of 1.3164 and a low of 1.3111. Yesterday, the EUR weakened against the USD by 0.22% in the New York session, and closed at 1.3117.

The pair is expected to find its first support at 1.3116 and first resistance at 1.3177.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5737 against the USD, 0.09% higher from the New York close. In economic news, the British Retail Consortium (BRC) shop price inflation in the UK eased to 1.2% (MoM) in February, compared to 1.4% posted in the previous month. During the session, the pair traded at a high of 1.5759 and a low of 1.5711. Yesterday, the British Pound fell 0.40% versus the Dollar in the New York session, and closed at 1.5723.

The pair is expected to find its first support at 1.5690 and first resistance at 1.5791.

USD JPY

The USD is trading at 80.76 against the JPY at 10:40 GMT this morning, 0.16% lower from the New York close. Yen is trading higher this morning, after reports showed that the Leading Index in Japan rose to a reading of 94.9 in January, compared to a reading of 93.8 posted in December. However, the Coincident Index fell to a reading of 93.1, compared to a reading of 93.6 posted in December. During the session, the pair traded at a high of 80.94 and a low of 80.59. In the New York session yesterday, USD fell 0.26% against JPY, and closed at 80.89.

The pair is expected to find its first support at 80.52 and first resistance at 81.08.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9167 against the Swiss Franc, 0.20% lower from the New York close. In Switzerland, the Swiss unemployment rate remained steady at 3.4% in February, compared to previous month. During the session, the pair traded at a high of 0.9191 and a low of 0.9159. In the New York session yesterday, USD rose 0.15% against CHF, and closed at 0.9185.

The pair is expected to find its first support at 0.9151 and first resistance at 0.9189.

USD CAD

At 10:40 GMT, the USD is trading at 1.0005 against the CAD, 0.08% lower from the New York close. During the session, the pair traded at a high of 1.0019 and a low of 0.9988. Yesterday, USD rose 0.24% against CAD in the New York session, and closed at 1.0013.

The pair is expected to find its first support at 0.9981 and first resistance at 1.0029.

AUD USD

The AUD is trading at 1.0573 against the USD, at 10:40 GMT this morning, 0.14% higher from the New York close. However, the gains were limited, amid reports that Australian Gross Domestic Product (GDP) grew 0.4% (QoQ) in the three months to December 2011, slower than the forecast for a 0.8% expansion. Additionally, the AiG Performance of Construction Index in Australia fell to a reading of 35.6 in February, compared to a reading of 39.8 posted in January. During the session, the pair traded at a high of 1.0584 and a low of 1.0510. AUD fell 0.36% against USD in the New York session yesterday, and closed at 1.0559.

The pair is expected to find its first support at 1.0519 and first resistance at 1.0617.

Gold

At 10:40 GMT, Gold is trading at $1681.25 per ounce, 0.41% higher from the New York close, amid demand from Asian traders, especially India and China. This morning, Gold traded at a high of $1683.05 and a low of $1671.30 per ounce. In the New York session yesterday, the yellow metal declined 0.86%, and closed at $1674.32.

Gold has its first support at $1665.77 and first resistance at $1694.28.

Silver

Silver is trading at $33.16 per ounce, 0.65% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $33.24 and a low of $32.73. Silver weakened 1.19% against USD in the New York session yesterday, and closed at $32.95.

Silver has its first support at $32.59 and first resistance at $33.62.

Crude Oil

At 10:40 GMT, Oil is trading at $105.38 per barrel, 0.40% higher from the New York close, after China stated that it would boost energy imports this year, while concerns persist over supply risks and Iran’s nuclear program, despite reports that the European Union has offered to restart negotiations with Iran over its nuclear program. Late yesterday, the American Petroleum Institute reported that the US crude oil inventories rose 4.6 million barrels for the week ended 2nd February. Gasoline stocks fell 2.3 million barrels, while distillate inventories rose 924,000 barrels. This morning, Oil traded at a high of $105.6 and a low of $104.77. Yesterday, Oil fell 1.00% against USD in the New York session, and closed at $104.91.

It has its first support at $104.5 and first resistance at $106.28.

Economic Snapshot

UK shop price inflation eased in February, indicates BRC

A survey by the British Retail Consortium (BRC) indicated that on a monthly basis, the shop price inflation in the UK eased to 1.2% in February, compared to a rate of 1.4% posted in the previous month.

German factory orders fell unexpectedly in January

German Factory Orders fell 2.7% (MoM) in January, compare to a 1.6% rise recorded in the previous month. Analysts’ were expecting a slower growth of 0.6%.

Swiss jobless rate remained unchanged in February

On a seasonally adjusted basis, unemployment rate in Switzerland remained unchanged at 3.1% in February.

Leading index in Japan rose in January

The leading index in Japan climbed to a reading of 94.9 in January from a reading of 93.8 in December. Meanwhile, the coincident index fell to a reading of 93.1 in January, from 93.6 in December.

Australian economy grows weaker-than-expected

According to the Australian Bureau of Statistics, Australia’s seasonally adjusted GDP expanded 0.4% sequentially during the December quarter, slower than the forecast for a 0.8% expansion.

PDF-Direct FX_Daily Currency Report 6th March 2012
Forex Market Update

This morning, the greenback is trading mostly higher against the major currencies, as lingering worries about the Euro-zone debt crisis raised appeal for safe-haven currencies.

Investors remained cautious amid uncertainty over the outcome of the Greek debt swap with its private creditors, prior to a March 8 deadline.

The Euro came under pressure, after a report from the Institute of International Finance stated that a disorderly Greek default would cause more than a €1 trillion ($1.36 trillion) in damage to the Euro-zone. The report also indicated that a default by Greece would likely force Italy and Spain to seek outside help to stop the risk from spreading.

Pound came under pressure after retail sales in the UK declined for a second consecutive month in February. Additionally, house prices in the UK fell unexpectedly in February, declining for the third time in the past four months.

Aussie is trading lower this morning, after the Reserve Bank of Australia (RBA) retained its benchmark interest rate at 4.25%. Additionally, Australian current account deficit widened more-than-expected in the fourth quarter of 2011.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3146 against the USD, 0.54% lower from the New York close, after the German construction sector contracted significantly in February. Euro was also weighed down by ongoing concerns regarding the Greek debt swap later this week. In economic news, German construction Purchasing Managers’ Index (PMI) fell to a reading of 35.3 in February. Additionally, the Euro-zone economy contracted 0.3% sequentially in the fourth quarter of 2011. During the session, the pair traded at a high of 1.3226 and a low of 1.3135. Yesterday, the EUR strengthened against the USD by 0.08% in the New York session, and closed at 1.3217.

The pair is expected to find its first support at 1.3107 and first resistance at 1.3213.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5778 against the USD, 0.55% lower from the New York close, amid release of disappointing UK economic data. A survey by the British Retail Consortium (BRC) indicated that, on an annual basis, like-for-like retail sales in the UK fell 0.3% in February, unchanged from the decline posted in the previous month. Additionally, the UK house prices declined 0.5% (MoM) in February from January’s 0.6% increase and lower than analyst’s expectations of a 0.3% rise. During the session, the pair traded at a high of 1.5882 and a low of 1.5758. Yesterday, the British Pound rose 0.19% versus the Dollar in the New York session, and closed at 1.5865.

The pair is expected to find its first support at 1.5730 and first resistance at 1.5854.

USD JPY

The USD is trading at 80.96 against the JPY at 10:40 GMT this morning, 0.73% lower from the New York close. In Japan, the total labor cash earnings remained flat in February, compared to 0.1% increase in January. During the session, the pair traded at a high of 81.59 and a low of 80.78. In the New York session yesterday, USD rose 0.28% against JPY, and closed at 81.56.

The pair is expected to find its first support at 80.64 and first resistance at 81.44.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9174 against the Swiss Franc, 0.55% higher from the New York close. During the session, the pair traded at a high of 0.9181 and a low of 0.9115. In the New York session yesterday, USD fell 0.11% against CHF, and closed at 0.9124. Swiss Franc rose after Switzerland’s retail sales increased at the fastest rate in seven months in January.

The pair is expected to find its first support at 0.9126 and first resistance at 0.9201.

USD CAD

At 10:40 GMT, the USD is trading at 1.0000 against the CAD, 0.55% higher from the New York close. The pair is likely to receive increased market attention by the release of Canadian Ivey Purchasing Managers Index (PMI) for the February. During the session, the pair traded at a high of 1.0009 and a low of 0.9937. Yesterday, USD rose 0.12% against CAD in the New York session, and closed at 0.9945.

The pair is expected to find its first support at 0.9944 and first resistance at 1.0032.

AUD USD

The AUD is trading at 1.0592 against the USD, at 10:40 GMT this morning, 0.72% lower from the New York close, following the RBA’s decision to leave rates on hold at 4.25%, coupled with larger-than-expected current account deficit. In Australia, the current account deficit rose to A$8.37 billion (QoQ) in fourth quarter of 2011, compared to a deficit of A$5.63 billion in third quarter of 2011. During the session, the pair traded at a high of 1.0692 and a low of 1.0574. AUD fell 0.20% against USD in the New York session yesterday, and closed at 1.0669.

The pair is expected to find its first support at 1.0542 and first resistance at 1.0673.

Gold

At 10:40 GMT, Gold is trading at $1687.34 per ounce, 1.11% lower from the New York close, as the greenback strengthened and amid downbeat sentiment after China lowered its growth forecast for 2012, on Monday. This morning, Gold traded at a high of $1709.09 and a low of $1683.09 per ounce. In the New York session yesterday, the yellow metal rose 0.17%, and closed at $1706.34.

Gold has its first support at $1676.72 and first resistance at $1704.34.

Silver

Silver is trading at $33.24 per ounce, 2.23% lower from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $34.18 and a low of $33.09. Silver weakened 1.19% against USD in the New York session yesterday, and closed at $33.99.

Silver has its first support at $32.62 and first resistance at $34.32.

Crude Oil

At 10:40 GMT, Oil is trading at $106.19 per barrel, 0.90% lower from the New York close, as concerns over the global economic outlook outweighed persistent fears over a disruption of supplies from Iran. This morning, Oil traded at a high of $107.30 and a low of $105.81. Yesterday, Oil rose 0.43% against USD in the New York session, and closed at $107.14.

It has its first support at $105.51 and first resistance at $107.15.

Economic Snapshot

UK retail sales declined for a second consecutive month in February, indicates BRC

A survey by the BRC has indicated that, on an annual basis, like-for-like retail sales in the UK fell 0.3% in February, unchanged from the decline posted in the previous month. Total retail sales were up 2.3% in February, compared to a 2.1% rise recorded a month earlier.

UK house prices decline in February

On a monthly basis, house prices in the UK retreated by 0.5% in February, compared to a 0.6% increase in January. Market expected a 0.3% rise in February.

German construction sector contracted in February

On a seasonally adjusted basis, the construction PMI in Germany slumped to 35.3 in February, compared to a reading of 53.2 in January.

Euro-zone GDP contracts in line with expectations in Q4

On a sequential basis, the Euro-zone economy contracted 0.3% in the fourth quarter of 2011, in line with the preliminary estimate, and compared to 0.1% expansion in the third quarter of 2011. Meanwhile, on a quarter-on-quarter basis, household consumption eased 0.4% in the fourth quarter of 2011, following a 0.3% growth in the preceding period. Also, government spending declined 0.2% in the fourth quarter of 2011.

Japanese wages remain flat in January

On an annual basis, total labor cash earnings in Japan remained flat at JPY 273,318 in January, compared to a 0.1% rise in December.

PDF-Direct FX_Daily Currency Report 5th March 2012

Forex Market Update

This morning, the greenback is trading mixed against the major currencies.

The Euro extended its Friday’s losses, after Euro-zone composite PMI fell to 49.3 in February from 50.4 in January, coming in below the earlier, preliminary estimate of 49.7. Additionally, investor confidence in the Euro-zone for March improved less-than-expected, remaining in negative territory for the eighth consecutive month.

Data released this morning indicated that the Swiss retail sales increased at the fastest rate in seven months in January.

The British Pound came under pressure, after the British Chambers of Commerce (BCC) in its new Quarterly Economic Forecast, downgraded its prediction for UK GDP growth in 2012 to 0.6% from the previously predicted 0.8%. Additionally, a survey of purchasing managers released today, indicated that activity in Britain’s service sector grew at its slowest pace in three months in February.

The Australian Dollar is trading lower, after its biggest trading partner, China stated that it would aim for slower growth. China’s Premier, Wen Jiabao, stated that the government aims for economic growth of 7.5% this year, lower than the country’s targeted expansion of 8% in the past several years.

The greenback traded higher in the New York session on Friday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3197 against the USD, marginally lower from the New York close, after the data indicated that investor confidence in the Euro-zone for March improved less-than-expected, remaining in negative territory for the eighth consecutive month. A separate report showed that the services sector in the Euro-zone contracted at a faster rate than initially expected in February, shrinking for the fifth time in six months. In Germany, the services PMI fell to a reading of 52.8 in December. During the session, the pair traded at a high of 1.3214 and a low of 1.3160. On Friday, the EUR weakened against the USD by 0.16% in the New York session, and closed at 1.3198.

The pair is expected to find its first support at 1.3153 and first resistance at 1.3248.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5811 against the USD, 0.15% lower from the New York close, after the British Chambers of Commerce revised down its growth forecast for the British economy in 2012 to 0.6% from 0.8% and warned that the economy faced “serious challenges”. Additionally, the Markit/CIPS services Purchasing Managers Index fell to 53.8 from a reading of 56.0 in January. During the session, the pair traded at a high of 1.5846 and a low of 1.5786. On Friday, the British Pound fell 0.18% versus the Dollar in the New York session, and closed at 1.5834.

The pair is expected to find its first support at 1.5754 and first resistance at 1.5900.

USD JPY

The USD is trading at 81.22 against the JPY at 10:40 GMT this morning, 0.71% lower from the New York close. The Director-General of the BoJ’s monetary affairs department, Kazuo Momma, cautioned that setting too high a price goal in a country like Japan, which has seen very slow price growth, would heighten rather than lower uncertainty in the economy. During the session, the pair traded at a high of 81.87 and a low of 81.16. In the New York session on Friday, USD rose 0.36% against JPY, and closed at 81.80.

The pair is expected to find its first support at 80.96 and first resistance at 81.68.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9138 against the Swiss Franc, marginally lower from the New York close. Swiss Franc gained against the greenback, amid release of an upbeat Swiss retail sales data. On an annual basis, real retail sales in Switzerland rose 4.4% in January, following a 1.7% growth in December. During the session, the pair traded at a high of 0.9163 and a low of 0.9124. In the New York session on Friday, USD rose 0.18% against CHF, and closed at 0.9141.

The pair is expected to find its first support at 0.9101 and first resistance at 0.9168.

USD CAD

At 10:40 GMT, the USD is trading at 0.9946 against the CAD, 0.53% higher from the New York close. During the session, the pair traded at a high of 0.9947 and a low of 0.9886. On Friday, USD rose 0.20% against CAD in the New York session, and closed at 0.9893. The Canadian dollar came under pressure, after the Canadian economy slowed to an annualized 1.8% in the fourth quarter of 2011 from an upwardly revised 4.2% in the third.

The pair is expected to find its first support at 0.9890 and first resistance at 0.9974.

AUD USD

The AUD is trading at 1.0681 against the USD, at 10:40 GMT this morning, 0.48% lower from the New York close, after China cut its economic growth forecast in 2012. In Australian economic news, the AiG Performance of Services Index fell to a reading of 46.7 in February, compared to a reading of 51.9 in January. The TD Securities Inflation rose 0.1% (MoM) in February, compared to 0.2% rise in January. Additionally, the total number of job advertisements rose 3.3% in February, compared to 7.5% rise in January. During the session, the pair traded at a high of 1.0744 and a low of 1.0671. AUD fell 0.37% against USD in the New York session on Friday, and closed at 1.0733.

The pair is expected to find its first support at 1.0638 and first resistance at 1.0757.

Gold

At 10:40 GMT, Gold is trading at $1696.28 per ounce, 0.95% lower from the New York close, as the greenback strengthened against the Euro after weaker-than-expected Euro-zone economic data weighed on risk appetite. This morning, Gold traded at a high of $1716.90 and a low of $1694.69 per ounce. In the New York session on Friday, the yellow metal rose marginally, and closed at $1712.53.

Gold has its first support at $1687.96 and first resistance at $1711.33.

Silver

Silver is trading at $34.12 per ounce, 1.88% lower from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $35.03 and a low of $34.03. Silver weakened 0.84% against USD in the New York session on Friday, and closed at $34.77.

Silver has its first support at $33.67 and first resistance at $34.92.

Crude Oil

At 10:40 GMT, Oil is trading at $105.87 per barrel, 0.70% lower from the New York close, after China lowered growth forecast for 2012, raising concerns about oil demand. This morning, Oil traded at a high of $107.29 and a low of $105.50. On Friday, Oil fell 1.31% against USD in the New York session, and closed at $106.59.

It has its first support at $104.73 and first resistance at $107.78.

Economic Snapshot

UK Lloyds Business Barometer climbs in January

The Lloyds Business Barometer in the UK rose to a reading of 1.0 in February, compared to a reading of -11.0 in the January.

UK Service Sector growth eases more-than-expected in February

On a seasonally adjusted basis, the UK PMI for the service sector dropped to 53.8 in February, from 56.0 in January. Market expected a reading of 54.9 in February.

BCC cuts UK growth forecast

In its Quarterly Economic Forecast, the British Chambers of Commerce downgraded the UK’s economic growth outlook to 0.6% in 2012 from the previously predicted 0.8%, but ruled out chances for a double-dip recession.

German private sector growth eased in February

The final composite output index in Germany retreated to 53.2 in February, compared to a seven-month high reading of 53.9 in January. Additionally, the services business activity index fell to 52.8 in February, from 53.7 in January.

French service sector retreated in February

On a seasonally adjusted basis, the Purchasing Managers’ Index (PMI) for the service sector in France declined to 50.0 in February, lower than the flash estimate of 50.3 and compared to a reading of 52.3 in January.

Euro-zone private sector shrinks more-than-expected in February

The final Composite Output Index in the Euro-zone declined to 49.3 in February, lower than the earlier flash estimate of 49.7 and compared to a reading of 50.4 in January. Also, the services business activity index edged down to 48.8 in February, from 50.4 in January.

Euro-zone Sentix investor confidence improved less-than-expected in March

The Sentix investor confidence index improved by 2.9 points to -8.2 in March, compared to a reading of -11.1 in February.

Euro-zone retail sales rose in January

Retail sales in the Euro-zone unexpectedly climbed 0.30% (MoM) in January, compared to a 0.50% decline in December.

Switzerland retail sales rose in January

On an annual basis, retail sales in Switzerland rose 4.4% in January, compared to a 1.7% rise in December.

PDF-Direct FX_Daily Currency Report 2nd March 2012

Forex Market Update

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

European Union leaders have signed the region’s new fiscal pact this morning, which has set strict new rules on deficits and debts. German Chancellor, Angela Merkel stated that the pact was necessary for stability and growth in the region and added that it represents a milestone for the European Union.

Euro came under pressure, as concerns regarding adequacy of the firewall against sovereign defaults accelerated after the European Council President, Herman Van Rompuy, stated that Euro-zone leaders are likely to reassess the adequacy of the overall ceiling of the EFSF and the ESM only by the end of March 2012.

Data released this morning showed that construction sector in the UK grew at the fastest pace in nearly a year in February. Additionally, German retail sales unexpectedly declined in January.

Federal Reserve Bank of San Francisco President, John Williams, stated that the Fed should maintain an “extraordinarily supportive policy” to reduce an unemployment rate that would probably exceed 7% for years.

Yesterday, the International Monetary Fund stated that the global economy has seen further setbacks and though recent developments have reduced the risk of another sharp slowdown, the risks remain “squarely to the downside”.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3246 against the USD, 0.52% lower from the New York close, after German retail sales dropped sharply in January. In economic news, Euro-zone Producer Price Index edged up 0.7% (MoM) in January, from a 0.2% drop recorded in the previous month. Meanwhile, retail sales in Germany fell 1.6% (MoM) in January. During the session, the pair traded at a high of 1.3333 and a low of 1.3240. Yesterday, the EUR strengthened against the USD by 0.05% in the New York session, and closed at 1.3315.

The pair is expected to find its first support at 1.3211 and first resistance at 1.3309.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5919 against the USD, 0.23% lower from the New York close. On the economic front, the construction Purchasing Managers’ Index surged to 54.3 in February, hitting the highest level since March 2011. During the session, the pair traded at a high of 1.5967 and a low of 1.5906. Yesterday, the British Pound rose 0.06% versus the Dollar in the New York session, and closed at 1.5957.

The pair is expected to find its first support at 1.5892 and first resistance at 1.5961.

USD JPY

The USD is trading at 81.51 against the JPY at 10:40 GMT this morning, 0.47% higher from the New York close. Yen came under pressure, amid speculation of further monetary easing by the Bank of Japan, after the country’s core consumer prices fell for the fourth consecutive month in January. Data released in Japan showed that the core consumer prices fell 0.1% (YoY) in January, posting the fourth straight drop. Additionally, on a seasonally adjusted basis, the unemployment rate rose 4.6% in January, compared to a downwardly revised rate of 4.5% in December. During the session, the pair traded at a high of 81.72 and a low of 81.09. In the New York session yesterday, USD rose 0.07% against JPY, and closed at 81.14.

The pair is expected to find its first support at 81.07 and first resistance at 81.84.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9101 against the Swiss Franc, 0.48% higher from the New York close. During the session, the pair traded at a high of 0.9110 and a low of 0.9047. In the New York session yesterday, USD rose marginally higher against CHF, and closed at 0.9058.

The pair is expected to find its first support at 0.9055 and first resistance at 0.9129.

USD CAD

At 10:40 GMT, the USD is trading at 0.9874 against the CAD, 0.15% higher from the New York close. The Loonie is likely to receive increased market attention, with Gross Domestic Product data due to be released later today in Canada. During the session, the pair traded at a high of 0.9881 and a low of 0.9849. Yesterday, USD fell against CAD in the New York session, and closed at 0.9859.

The pair is expected to find its first support at 0.9849 and first resistance at 0.9892.

AUD USD

The AUD is trading at 1.0778 against the USD, at 10:40 GMT this morning, 0.27% lower from the New York close. During the session, the pair traded at a high of 1.0818 and a low of 1.0760. AUD rose 0.33% against USD in the New York session yesterday, and closed at 1.0807.

The pair is expected to find its first support at 1.0749 and first resistance at 1.0812.

Gold

At 10:40 GMT, Gold is trading at $1714.99 per ounce, 0.18% lower from the New York close, as the greenback strengthened. This morning, Gold traded at a high of $1724.34 and a low of $1711.94 per ounce. In the New York session yesterday, the yellow metal rose 0.30%, and closed at $1718.10.

Gold has its first support at $1702.80 and first resistance at $1726.57.

Silver

Silver is trading at $35.20 per ounce, 0.84% lower from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $35.5 and a low of $35.06. Silver strengthened 2.17% against USD in the New York session yesterday, and closed at $35.50.

Silver has its first support at $34.53 and first resistance at $35.76.

Crude Oil

At 10:40 GMT, Oil is trading at $108.04 per barrel, 0.60% lower from the New York close. Yesterday, oil prices surged after an Iranian media reported an explosion on a pipeline in Saudi Arabia. However, Saudi Arabia oil officials denied these reports later on. This morning, Oil traded at a high of $109.03 and a low of $107.86. Yesterday, Oil rose 1.43% against USD in the New York session, and closed at $108.72.

It has its first support at $106.32 and first resistance at $110.15.

Economic Snapshot

UK construction sector strengthened in February

On a seasonally adjusted basis, the construction Purchasing Managers’ Index (PMI) in the UK advanced to 54.3 in February, from 51.4 in January. Market expected the index to drop to 51.3 in February.

Retail sales in Germany fall unexpectedly in January

On a monthly basis, retail sales in Germany fell 1.6% in January, compared to a 0.1% rise in December. Market expected a 0.5% growth in sales in January.

Euro-zone Producer Price Index rose in January

On a year-on-year basis, the Producer Price Index (PPI) in the Euro-zone advanced 3.7% in January, compared to a 4.3% growth in December.

PDF- Direct FX_Daily Currency Report 1st March 2012
Forex Market Update

This morning, the greenback is trading mostly higher against the major currencies. However the currency came under pressure during the early Asian session, as risk sentiment improved after upbeat manufacturing data from China.

Yesterday, the US Dollar gained, after Federal Reserve Chairman, Ben Bernanke’s testimony to Congress led to lower expectations of another round of quantitative easing. Additionally, increased demand for the ECB’s second 3-year LTRO raised concerns regarding the funding problems of European banks.

Data released today morning, indicated that Switzerland’s economy expanded in the fourth quarter of 2011, while house prices in the UK rose more-than-expected in February. The manufacturing activity in the Euro-zone contracted in February. Additionally, German manufacturing activity showed a weaker growth in February.

In bond auctions, France sold €7.99 billion ($10.7 billion) of bonds, with borrowing costs declining. Earlier today, Spain also sold €4.5 billion of bonds maturing in 2014, 2015 and 2016, meeting its maximum target for the auction.

The Bank of England policy maker, Martin Weale, stated that consumption in the UK “appears to be growing again” and recent economic indicators have been more positive, tempering the expectations of further stimulus.

The greenback traded higher in the New York session yesterday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3327 against the USD, marginally lower from the New York close, ahead of the EU leaders meeting in Brussels starting today. Meanwhile, positive economic data continue to boost risk appetite, after data released earlier today indicated an expansion in the manufacturing sector activity in Germany and France for February. During the session, the pair traded at a high of 1.3356 and a low of 1.3305. Yesterday, the EUR weakened against the USD by 0.80% in the New York session, and closed at 1.3328.

The pair is expected to find its first support at 1.3265 and first resistance at 1.3429.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5947 against the USD, 0.19% higher from the New York close, house prices in the UK rose more-than-expected in February, showing signs of revival in the housing market. During the session, the pair traded at a high of 1.5956 and a low of 1.5897. Yesterday, the British Pound fell 0.10% versus the Dollar in the New York session, and closed at 1.5917.

The pair is expected to find its first support at 1.5898 and first resistance at 1.5994.

USD JPY

The USD is trading at 81.06 against the JPY at 10:40 GMT this morning, 0.12% lower from the New York close. The Japanese Yen advanced after capital spending in Japan rose 7.6% (YoY) in the fourth quarter of 2011, at ¥9.944 trillion, against the expectation for a contraction of 6.5% and following 9.8% plunge in the third quarter. During the session, the pair traded at a high of 81.40 and a low of 80.84. In the New York session yesterday, USD rose 1.06% against JPY, and closed at 81.16.

The pair is expected to find its first support at 80.41 and first resistance at 81.56.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.9045 against the Swiss Franc, marginally higher from the New York close. On the economic front, Swiss GDP grew by a stronger-than-expected 0.1% in the fourth quarter, while the PMI rose to a reading of 49.0 in February. During the session, the pair traded at a high of 0.9059 and a low of 0.9022. In the New York session yesterday, USD rose 0.83% against CHF, and closed at 0.9043.

The pair is expected to find its first support at 0.8975 and first resistance at 0.9087.

USD CAD

At 10:40 GMT, the USD is trading at 0.9880 against the CAD, 0.14% lower from the New York close. During the session, the pair traded at a high of 0.9900 and a low of 0.9871. Yesterday, USD rose marginally against CAD in the New York session, and closed at 0.9894.

The pair is expected to find its first support at 0.9846 and first resistance at 0.9912.

AUD USD

The AUD is trading at 1.0765 against the USD, at 10:40 GMT this morning, 0.29% higher from the New York close, after reports indicated that AiG Performance of Manufacturing Index in Australia expanded for a third consecutive month to 51.3 in February, while building permits rose 0.9% (MoM) in January. Separately, total capital expenditure fell 0.3% sequentially in the December quarter, from 14.6% expansion seen in the prior quarter and weaker-than-expected growth of 3.8%. During the session, the pair traded at a high of 1.0776 and a low of 1.0725. AUD fell 0.87% against USD in the New York session yesterday, and closed at 1.0734.

The pair is expected to find its first support at 1.0702 and first resistance at 1.0841.

Gold

At 10:40 GMT, Gold is trading at $1718.24 per ounce, 1.26% higher from the New York close. This morning, Gold traded at a high of $1725.19 and a low of $1694.76 per ounce. In the New York session yesterday, the yellow metal declined 4.96%, and closed at $1696.93.

Gold has its first support at $1674.21 and first resistance at $1775.15.

Silver

Silver is trading at $34.78 per ounce, 0.35% higher from the New York close, at 10:40 GMT this morning. This morning, Silver traded at a high of $35.17 and a low of $34.53. Silver weakened 6.76% against USD in the New York session yesterday, and closed at $34.66.

Silver has its first support at $33.25 and first resistance at $36.90.

Crude Oil

At 10:40 GMT, Oil is trading at $107.27 per barrel, 0.30% higher from the New York close, amid persisting concerns over supply disruption from Iran. Yesterday, the US Energy Information Administration (EIA) reported that the US crude oil inventories rose 4.2 million barrels to 344.9 million barrels for the week ended 24 February. This morning, Oil traded at a high of $107.40 and a low of $106.55. Yesterday, Oil rose 0.08% against USD in the New York session, and closed at $106.96.

It has its first support at $105.61 and first resistance at $108.16.

Economic Snapshot

UK Nationwide Housing Price Index rose in February

On a monthly basis, the Nationwide Housing Price Index in the UK rose 0.6% in February, compared to 0.3% drop posted in the previous month.

UK manufacturing PMI fell unexpectedly fell in February

The manufacturing Purchasing Managers’ Index (PMI) in the UK declined to a reading of 51.2 in February, compared to a reading of 52.0 posted in January. Market had expected the PMI to remain steady at 52.0 in February.

German manufacturing PMI fell in February

The manufacturing Purchasing Managers’ Index (PMI) in Germany fell to a reading of 50.2 in February, slightly up from the flash reading of 50.1, but down from January’s level of 51.0.

France manufacturing PMI recovers in February

The Purchasing Managers’ Index (PMI) in France came in at 50.0 in February, compared to a reading of 48.5 posted in January.

Euro-zone manufacturing PMI improved in February

The manufacturing Purchasing Managers’ Index (PMI) in Euro-zone rose to a reading of 49.0 in February, compared to a reading of 48.8 posted in January.

Euro-zone flash CPI rose unexpectedly in February

On a seasonally adjusted basis, the Consumer Price Inflation in Euro-zone rose to 2.7% in February, compared to a 2.6% rise in January. Market had expected the rate to remain steady at 2.6% in February.

Euro-zone unemployment increased in January

The unemployment rate in Euro-zone rose to 10.7% in January, compared to 10.6% in December.

Swiss GDP expanded in fourth quarter of 2011

On an annual basis, the Gross Domestic Product (GDP) in Switzerland, rose 1.3% in fourth quarter of 2011, compared to 1.6% growth in the previous quarter. Market had expected 0.9% rise in fourth quarter of 2011. Additionally, on a seasonally adjusted basis, the GDP increased 0.1% (QoQ) in the fourth quarter, against the expectations of a 0.1% decline.

Swiss SVME – Purchasing Managers’ Index (PMI) increased in February

The SVME Purchasing Managers’ Index (PMI) in Switzerland rose to a reading of 49.0 in February, compared to a reading of 47.3 posted in January.

PDF- Direct FX_Daily Currency Report 29th February 2012

Forex Market Update

This morning, the greenback is trading mixed against the major currencies.

The European Central Bank alloted €529.53 billion in the second round of long-term refinancing operation (LTRO).

Investors, however remained cautious, amid reports that Ireland is to hold a referendum to decide on the implementation of the new European Union fiscal compact on budget discipline agreed last month.

A member of the ECB’s governing council, Ewald Nowotny, citing optimism in the region, stated that the Euro-zone may soon witness the “green shoots” of economic revival.

Data released this morning showed that Japanese housing starts fell for the fifth consecutive month in January, but at a slower-than-expected pace. Additionally, consumer credit and mortgage approvals in the UK posted a unexpected rise in January. Moreover, the number of unemployed workers in German remained unchanged in February.

The Bank of Japan Governor, Masaaki Shirakawa, reiterated this morning that the central bank is committed to implement “powerful” monetary easing measures in order to end the nation’s long-running battle with deflation. He added that the central bank’s recently-introduced “price goal” of a 1% rise in the consumer price index “is a policy with an active stance”.

The greenback traded lower in the New York session yesterday against the key currencies.

EUR USD

This morning at 10:40 GMT, the EUR is trading at 1.3439 against the USD, 0.14% lower from the previous close, after the ECB stated that that it had allotted €529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year. The high uptake on the operation sparked concerns that banks in the region expect liquidity pressures to continue. During the session, the pair traded at a high of 1.3486 and a low of 1.3425. Yesterday, the EUR strengthened against the USD by 0.05% in the New York session, and closed at 1.3458.

The pair is expected to find its first support at 1.3390 and first resistance at 1.3487.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5935 against the USD, 0.21% higher from the previous close, after the release of consumer confidence data in the UK. Market research firm, GfK NOP, stated that even though the overall reading on consumer confidence remained unchanged at -29.0 since last month, there were grounds for “cautious optimism” about the economic recovery. Meanwhile, hopes of additional easing faded after the BoE Deputy Governor, Paul Tucker, indicated that policymakers must be prepared to “gradually” withdraw stimulus as the UK economy strengthens. During the session, the pair traded at a high of 1.5959 and a low of 1.5899. Yesterday, the British Pound rose 0.30% versus the Dollar in the New York session, and closed at 1.5901.

The pair is expected to find its first support at 1.5837 and first resistance at 1.5996.

USD JPY

The USD is trading at 80.52 against the JPY at 10:40 GMT this morning, 0.08% higher from the previous close. In economic news, industrial production in Japan rose 2.0% (MoM) in January. However, the Markit/JMMA manufacturing PMI in Japan declined to 50.5 in February. Also, housing starts in Japan slipped 1.1% (YoY) in January. During the session, the pair traded at a high of 80.69 and a low of 80.26. In the New York session yesterday, USD fell 0.17% against JPY, and closed at 80.46.

The pair is expected to find its first support at 80.28 and first resistance at 80.74.

USD CHF

This morning at 10:40 GMT, the USD is trading at 0.8968 against the Swiss Franc, 0.15% higher from the previous close. On the economic front, the Swiss KOF Leading Indicator improved for the first time since May 2011 to -0.12 in February, from -0.15 in January. During the session, the pair traded at a high of 0.8977 and a low of 0.8936. In the New York session yesterday, USD fell 0.06% against CHF, and closed at 0.8954.

The pair is expected to find its first support at 0.8935 and first resistance at 0.9001.

USD CAD

At 10:40 GMT, the USD is trading at 0.9902 against the CAD, 0.53% lower from the previous close, as risk appetite rose. During the session, the pair traded at a high of 0.9958 and a low of 0.9895. Yesterday, USD fell marginally against CAD in the New York session, and closed at 0.9955.

The pair is expected to find its first support at 0.9869 and first resistance at 0.9960.

AUD USD

The AUD is trading at 1.0837 against the USD, at 10:40 GMT this morning, 0.65% higher from the previous close, amid the release of positive Australian retail sales data in January. The Australian Bureau of Statistics reported that retail sales, on seasonally adjusted basis, rose 0.3% (MoM) in January as compared to 0.1% decline in December. Additionally, Private Sector Credit rose 0.2% (MoM) in January. Meanwhile, Housing Industry Association stated that the new home sales dropped 7.3% (MoM) in January. During the session, the pair traded at a high of 1.0857 and a low of 1.0766. AUD fell 0.07% against USD in the New York session yesterday, and closed at 1.0767.

The pair is expected to find its first support at 1.0759 and first resistance at 1.0886.

Gold

At 10:40 GMT, Gold is trading flat at $1784.14 per ounce. This morning, Gold traded at a high of $1790.80 and a low of $1780.90 per ounce. In the New York session yesterday, the yellow metal rose 0.23%, and closed at $1784.18.

Gold has its first support at $1,775.77 and first resistance at $1,791.66.

Silver

Silver is trading at $37.14 per ounce, 0.57% higher from the previous close, at 10:40 GMT this morning. This morning, Silver traded at a high of $37.37 and a low of $36.86. Silver strengthened 2.71% against USD in the New York session yesterday, and closed at $36.93.

Silver has its first support at $36.01 and first resistance at $37.82.

Crude Oil

At 10:40 GMT, Oil is trading at $107.05 per barrel, 0.50% higher from the previous close, amid supply concerns. This morning, Oil traded at a high of $107.43 and a low of $106.21. Yesterday, Oil fell 1.73% against USD in the New York session, and closed at $106.52.

It has its first support at $105.92 and first resistance at $108.46.

Economic Snapshot

UK consumer confidence holds steady in February

GfK NOP Ltd has reported that the Consumer Confidence Index in the UK remained unchanged at a reading of -29.0 in February, the highest reading since June 2010. Market had forecast a modest rise to -27.0.

UK consumer credit expanded less-than-expected in January

The consumer credit in the UK rose by £0.1 billion in January, against the expectation of a £0.2 billion increase.

UK money supply increased in January

On a monthly basis, M4 money supply in the UK increased 1.6% in January, compared to a 1.4% drop recorded in December.

UK mortgage approvals increased in January

The number of mortgage approvals for house purchases in the UK rose to 58,728 in January, compared to 55,019 recorded in December.

German unemployment rate remained flat in February

The unemployment rate in Germany remained unchanged at 6.8% in February, compared to an upwardly revised rate of 6.8% in January.

German import price inflation slowed less-than-expected in January

On an annual basis, the import prices in Germany rose 3.7% in January, compared to 3.9% increase recorded in December. Market had expected 3.0% growth in January.

Euro-zone CPI grew less-than-expected in January

On an annual basis, the Consumer Price Inflation in the Euro-zone rose 2.6% in January, compared to 2.7% growth posted in the previous month. Market had expected CPI to remain steady at 2.7% in January.

European Central Bank (ECB) LTRO allotment topped market expectations

The European Central Bank alloted €529.53 billion in the second round of long-term refinancing operation (LTRO). Economists had largely expected banks to take up a figure close to the €489 billion allotted in the ECB’s first three-year LTRO in December.

Switzerland KOF leading indicator improved in February

The KOF Leading Indicator in Switzerland, improved to a reading of -0.12 in February, compared to a reading of -0.15 recorded in January. Market had expected the KOF Leading Indicator to rise to a reading of -0.11 in February.

Japanese housing starts declines in January

On an annual basis, the housing starts in Japan fell 1.1% in January, compared to a 7.3% drop recorded in December.

Australian retail sales climbed in January

On a seasonally adjusted monthly basis, the retail sales in Australia rose 0.3% in January, in line with market expectations, compared to 0.1% decline recorded in the previous month.

PDF- Direct FX_Daily Currency Report 28th February 2012

Forex Market Update

This morning, the greenback is trading lower against the major currencies, as risk appetite rose, ahead of allotment of second round of three-year funds by European Central Bank prepares to boost liquidity of the region’s banks.

Euro is trading higher this morning, extending its yesterday’s gains after the lower house of Germany’s parliament approved Greece’s bailout package, shrugging off S&P’s downgrade of Greek debt to “Selective Default.”

Meanwhile, the European Central Bank has temporarily suspended the eligibility of Greek government debt for use as collateral in its lending operations, after S&P’s move.

Sentiment was also boosted, after Italy sold €3.75 billion of a new 10-year bond with the yield declining to 5.50%, compared to 6.08% at the last auction of similar-maturity debt. It also sold €2.5 billion of 2017 bonds to yield 4.19%, down from 5.39% previously.

Data released this morning showed that Japanese small business confidence weakened in February, while retail sales in Japan climbed unexpectedly in January. According to GfK survey, German consumer confidence is set to record a modest improvement in March.

Meanwhile in the UK, survey conducted by Confederation of British Industries (CBI), indicated that business conditions weakened at a slower pace for services sector in the three months to February.

The greenback traded mixed in the New York session yesterday against the key currencies.

EUR USD

At 10:40 GMT, the EUR is trading at 1.3438 against the USD, 0.31% higher from the New York close, ahead of a liquidity boosting operation by the European Central Bank. In economic news, in Germany, the Gfk Consumer Confidence rose to a reading of 6.0 in March, compared to a reading of 5.9 recorded in February. During the session, the pair traded at a high of 1.3463 and a low of 1.3391. Yesterday, the EUR weakened marginally against the USD in the New York session, and closed at 1.3396.

The pair is expected to find its first support at 1.3382 and first resistance at 1.3478.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5848 against the USD, 0.16% higher from the New York close. During the session, the pair traded at a high of 1.5876 and a low of 1.5814. Yesterday, the British Pound fell 0.11% versus the Dollar in the New York session, and closed at 1.5823.

The pair is expected to find its first support at 1.5813 and first resistance at 1.5879.

USD JPY

The USD is trading at 80.46 against the JPY at 10:40 GMT, 0.19% lower from the New York close. Yen is trading higher after reports showed that retail sales in Japan unexpectedly rose 1.9% in January. Meanwhile, small business confidence in Japan fell to 45.3 in February. Additionally, the prospect that some Japanese companies will need to repatriate earnings by the end of the fiscal year on March 31 also spurred demand for the Yen. During the session, the pair traded at a high of 80.79 and a low of 80.02. In the New York session yesterday, USD rose 0.18% against JPY, and closed at 80.61.

The pair is expected to find its first support at 80.05 and first resistance at 80.82.

USD CHF

At 10:40 GMT, the USD is trading at 0.8968 against the Swiss Franc, 0.30% lower from the New York close. The Swiss UBS Consumption Indicator decreased to a reading of 0.92 in January, compared to a reading of 0.94 recorded in the previous month. During the session, the pair traded at a high of 0.8999 and a low of 0.8951. In the New York session yesterday, USD rose marginally against CHF, and closed at 0.8995.

The pair is expected to find its first support at 0.8942 and first resistance at 0.9002.

USD CAD

At 10:40 GMT, the USD is trading at 0.9963 against the CAD, 0.25% lower from the New York close, as risk aversion eased among investors. During the session, the pair traded at a high of 0.9992 and a low of 0.9942. Yesterday, USD fell 0.37% against CAD in the New York session, and closed at 0.9989.

The pair is expected to find its first support at 0.9920 and first resistance at 1.0028.

AUD USD

The AUD is trading at 1.0759 against the USD, at 10:40 GMT, 0.07% higher from the New York close, on improved optimism over the Euro-zone debt crisis. During the session, the pair traded at a high of 1.0787 and a low of 1.0744. AUD rose 0.61% against USD in the New York session yesterday, and closed at 1.0752.

The pair is expected to find its first support at 1.0680 and first resistance at 1.0813.

Gold

At 10:40 GMT, Gold is trading at $1775.19 per ounce, 0.43% higher from the New York close, as the greenback weakened, ahead of European Central Bank’s second round of cash injection tomorrow. This morning, Gold traded at a high of $1777.35 and a low of $1766.00 per ounce. In the New York session yesterday, the yellow metal declined marginally, and closed at $1767.58.

Gold has its first support at $1764.73 and first resistance at $1782.59.

Silver

Silver is trading at $35.60 per ounce, 0.59% higher from the New York close, at 10:40 GMT. This morning, Silver traded at a high of $35.72 and a low of $35.33. Silver strengthened 0.32% against USD in the New York session yesterday, and closed at $35.39.

Silver has its first support at $35.21 and first resistance at $35.86.

Crude Oil

At 10:40 GMT, Oil is trading at $108.28 per barrel, 0.40% higher from the New York close. This morning, Oil traded at a high of $108.63 and a low of $107.78. Yesterday, Oil fell 0.74% against USD in the New York session, and closed at $107.90.

It has its first support at $107.23 and first resistance at $109.36.

Economic Snapshot

German Gfk Consumer Confidence Survey increased in March

The Gfk Consumer Confidence Survey in Germany rose to a reading of 6.0 in March, compared to a level of 5.9 in February.

Economic confidence in the Euro-zone rises in February

Consumer confidence in the Euro-zone retreated slightly to a reading of -20.3 in February, compared to a reading of -20.2 registered in January. Meanwhile, economic confidence rose to 94.4 in February, from 93.4 in January. Also, industrial confidence rose to -5.8 in February, from -7.0 in January. The business climate indicator edged up marginally to a level of -0.18 in February, from -0.21 in January. Moreover, the services index declined to a reading of -0.9 in February, from -0.7 in January.

Swiss consumption indicator declined in January

The UBS Consumption indicator in Switzerland retreated to 0.92 in January, from 0.94 in December.

Japanese Small business confidence declined in February

The headline business confidence index in Japan retreated to 45.3 in February, compared to a score of 45.7 points in January.

PDF-Direct FX_Daily Currency Report 27th February 2012

Forex Market Update

This morning, the greenback is trading higher against the major currencies, amid concerns over global economic growth.

The Euro gave up its initial gains, failing to get a sustained lift from the Group of 20 major economies supporting an enlarged Euro-zone aid package.

Italy’s six-month borrowing costs fell at auction today as it sold €12.25 billion in short-term bills, meeting strong demand, while the German bund auction failed to meet the target of the €3 billion twelve-month bills offer, with the yield rising to 0.77% compared to 0.70% previously.

At G-20 meeting of finance ministers and central bankers, US Treasury Secretary, Timothy Geithner, stated that “there is broad agreement that the IMF cannot substitute for the absence of a stronger European firewall and the IMF cannot move forward without more clarity on Europe’s own plans.”

Investors are cautious ahead of the voting in Germany to approve a second austerity package for Greece, later in the day.

Investors await data on pending home sales and the Dallas Fed manufacturing activity index in the US later today.

The greenback traded mixed in the New York session on Friday against the key currencies.

EUR USD

At 10:40 GMT, the EUR is trading at 1.3404 against the USD, 0.32% lower from the New York close, after the meeting of Group of 20 finance ministers failed to make progress on increasing the size of the International Monetary Fund’s lending capacity. In the Euro-zone, the M3 money supply rose 2.5% (YoY) in January, while the leading economic index climbed to 104.1 in January. Additionally, French producer prices climbed 0.6% (MoM) in January. During the session, the pair traded at a high of 1.3480 and a low of 1.3398. On Friday, the EUR strengthened against the USD by 0.26% in the New York session, and closed at 1.3447.

The pair is expected to find its first support at 1.3363 and first resistance at 1.3466.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5858 against the USD, 0.12% lower from the New York close, after Hometrack reported that house prices in the UK remained stagnant for the second consecutive month for February. It further stated that house prices would continue to decline in the coming months, amid tepid demand. During the session, the pair traded at a high of 1.5903 and a low of 1.5847. On Friday, the British Pound rose 0.45% versus the Dollar in the New York session, and closed at 1.5878.

The pair is expected to find its first support at 1.5798 and first resistance at 1.5911.

USD JPY

The USD is trading at 80.68 against the JPY at 10:40 GMT, 0.63% lower from the New York close. During the session, the pair traded at a high of 81.68 and a low of 80.31. In the New York session on Friday, USD rose 0.82% against JPY, and closed at 81.19.

The pair is expected to find its first support at 80.10 and first resistance at 81.47.

USD CHF

At 10:40 GMT, the USD is trading at 0.8991 against the Swiss Franc, 0.35% higher from the New York close. During the session, the pair traded at a high of 0.8995 and a low of 0.8938. In the New York session on Friday, USD weakened 0.27% against CHF, and closed at 0.8960.

The pair is expected to find its first support at 0.8946 and first resistance at 0.9021.

USD CAD

At 10:40 GMT, the USD is trading at 1.0042 against the CAD, 0.50% higher from the New York close, on increased risk aversion as concerns over the debt crisis in the Euro persisted after European members were told at the Group of 20 nations’ summit this weekend that they must come up with more financial firepower to fight the region’s debt crisis in return for more help from the rest of the world. During the session, the pair traded at a high of 1.0049 and a low of 0.9979. On Friday, USD rose 0.11% against CAD in the New York session, and closed at 0.9993.

The pair is expected to find its first support at 0.9990 and first resistance at 1.0072.

AUD USD

The AUD is trading at 1.0660 against the USD, at 10:40 GMT, 0.32% lower from the New York close, amid concerns that Greece would face difficulties in resolving its debt crisis, diminishing appeal for high-yielding assets. This morning, Australian Prime Minister, Julia Gillard convincingly won a leadership vote against rival Kevin Rudd. During the session, the pair traded at a high of 1.0716 and a low of 1.0650. AUD fell 0.22% against USD in the New York session on Friday, and closed at 1.0694.

The pair is expected to find its first support at 1.0624 and first resistance at 1.0722.

Gold

At 10:40 GMT, Gold is trading at $1764.01 per ounce, 0.47% lower from the New York close, as greenback strengthened. This morning, Gold traded at a high of $1778.59 and a low of $1763.99 per ounce. In the New York session on Friday, the yellow metal declined 0.26%, and closed at $1772.28.

Gold has its first support at $1758.15 and first resistance at $1775.71.

Silver

Silver is trading at $35.13 per ounce, 0.73% lower from the New York close, at 10:40 GMT. This morning, Silver traded at a high of $35.61 and a low of $35.08. Silver strengthened 0.11% against USD in the New York session on Friday, and closed at $35.39.

Silver has its first support at $34.91 and first resistance at $35.52.

Crude Oil

At 10:40 GMT, Oil is trading at $108.32 per barrel, 1.30% lower from the New York close, after International Monetary Fund warned that the global economy is still at risk of a slowdown, weighing on prospects for future oil demands. This morning, Oil traded at a high of $109.77 and a low of $108.32. On Friday, Oil rose 1.36% against USD in the New York session, and closed at $109.70.

It has its first support at $107.53 and first resistance at $109.53.

Economic Snapshot

UK house prices remained steady in February

Hometrack has reported that on a monthly basis, average house prices in the UK remained flat in February, for the second consecutive month.

French producer prices rose more-than-expected in January

On a monthly basis, the producer prices in France climbed 0.6% in January, compared to a 0.1% decline in December. Market expected a 0.4% rise.

Euro-zone leading index advanced in January

According to survey by Conference Board, the leading economic index in the Euro-zone rose to a reading of 104.1 in January, compared to a reading of 103.1 in December. Meanwhile, the coincident economic index, stood stable at 102.6 in January.

Euro-zone M3 money supply advanced in January

On an annual basis, the M3 money supply in the Euro-zone advanced 2.5% in January, compared to a 1.5% rise in December. Market expected a 1.8% rise.

Private sector loan growth in Euro-zone rose in January

Private sector lending rose in the Euro-zone 1.1% (YoY) in January, compared to 1.0% in December.

PDF- Direct FX_Daily Currency Report 24th February 2012

Forex Market Update

This morning, the greenback is trading lower against the major currencies.

Data released this morning showed that the Gross Domestic Product in Germany declined in the fourth quarter of 2011. Meanwhile, UK’s economy also shrank in the fourth quarter of 2011.

The Euro is trading higher this morning, as investors remained optimistic about the second three-year financing operation by the European Central Bank (ECB) on February 29, which is expected to inject nearly €0.5 trillion into banks.

Investor sentiment also received support, after Italy sold €3 billion of two-year benchmark CTZ bonds, with the average yield declining to 3.013%, from 3.763% last month.

Bank of England policymaker, Paul Fisher, stated that the outlook for the UK economy is still incredibly uncertain and assured that the central bank could increase asset purchases again in May depending on the economic outlook.

Investors await results from the G-20 meeting of finance ministers and central bankers during the weekend to discuss the Euro-zone debt crisis and IMF contribution to the Greek bailout.

This morning, the Conference Board’s Leading Economic Index for China rose 1.6% to 225.7 in January.

The greenback traded mostly lower in the New York session yesterday against the key currencies.

EUR USD

At 10:40 GMT, the EUR is trading at 1.3389 against the USD, 0.15% higher from the New York close. In economic news, Gross Domestic Product (GDP) in Germany declined 0.2% in fourth quarter of 2011, compared to the previous quarter. During the session, the pair traded at a high of 1.3406 and a low of 1.3357. Yesterday, the EUR strengthened against the USD by 0.57% in the New York session, and closed at 1.3369.

The pair is expected to find its first support at 1.3304 and first resistance at 1.3440.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5798 against the USD, 0.35% higher from the New York close. In the UK, on a sequential basis, GDP declined 0.2% in the Q4FY2011, in line with an earlier estimate. Government spending edged up 1.0% in the Q4FY2011. Meanwhile, on an annual basis, the total business investment edged down 2.0% in 4QFY11, compared to a 4.3% growth in the previous quarter. During the session, the pair traded at a high of 1.5819 and a low of 1.5722. Yesterday, the British Pound rose 0.15% versus the Dollar in the New York session, and closed at 1.5743.

The pair is expected to find its first support at 1.5714 and first resistance at 1.5851.

USD JPY

The USD is trading at 80.58 against the JPY at 10:40 GMT, 0.74% higher from the New York close. The Corporate Service Price Index (CSPI) in Japan declined 0.2% (YoY) in January, compared to a 0.1% rise recorded in December. During the session, the pair traded at a high of 80.65 and a low of 79.93. In the New York session yesterday, USD fell 0.24% against JPY, and closed at 79.99.

The pair is expected to find its first support at 80.08 and first resistance at 80.87.

USD CHF

At 10:40 GMT, the USD is trading at 0.9003 against the Swiss Franc, 0.13% lower from the New York close. During the session, the pair traded at a high of 0.9028 and a low of 0.8991. In the New York session yesterday, USD fell 0.56% against CHF, and closed at 0.9015.

The pair is expected to find its first support at 0.8969 and first resistance at 0.9058.

USD CAD

At 10:40 GMT, the USD is trading at 0.9972 against the CAD, marginally lower from the New York close. During the session, the pair traded at a high of 0.9988 and a low of 0.9967. Yesterday, USD fell marginally against CAD in the New York session, and closed at 0.9975.

The pair is expected to find its first support at 0.9951 and first resistance at 0.9995.

AUD USD

The AUD is trading at 1.0734 against the USD, at 10:40 GMT, 0.16% higher from the New York close, after Reserve Bank of Australia Governor (RBA), Glenn Stevens, ruled out possibility of interest rate cut and possible intervention by central bank. However, gains were limited, following reports of ratings downgrade of three Australian major banks by Fitch Rating Agency. During the session, the pair traded at a high of 1.0755 and a low of 1.0703. AUD rose 0.25% against USD in the New York session yesterday, and closed at 1.0717.

The pair is expected to find its first support at 1.0679 and first resistance at 1.0772.

Gold

At 10:40 GMT, Gold is trading at $1778.94 per ounce, 0.10% lower from the New York close, amid profit booking. This morning, Gold traded at a high of $1782.99 and a low of $1774.81 per ounce. In the New York session yesterday, the yellow metal rose 0.30%, and closed at $1780.73.

Gold has its first support at $1771.97 and first resistance at $1786.71.

Silver

Silver is trading at $35.56 per ounce, 0.57% higher from the New York close, at 10:40 GMT. This morning, Silver traded at a high of $35.73 and a low of $35.25. Silver strengthened 2.43% against USD in the New York session yesterday, and closed at $35.36.

Silver has its first support at $34.79 and first resistance at $36.03.

Crude Oil

At 10:40 GMT, Oil is trading at $108.10 per barrel, 0.50% lower from the New York close. This morning, Oil traded at a high of $108.71 and a low of $108.03. Yesterday, Oil rose 2.16% against USD in the New York session, and closed at $108.68. The Energy Information Administration (EIA) reported that the US crude stockpiles climbed 1.6 million barrels for the week ended 17 February.

It has its first support at $106.15 and first resistance at $109.40.

Economic Snapshot

UK GDP retreats in the fourth quarter of 2011

On a sequential basis, GDP in the UK declined 0.2% in the Q4FY2011, in line with an earlier estimate. Government spending edged up 1.0% in the Q4FY2011.

Total business investment in the UK drops in Q4

In the UK, on an annual basis, the total business investment edged down 2.0% in 4QFY11, compared to a 4.3% growth in the previous quarter.

German GDP declines in the fourth quarter of 2011

On a quarterly basis, the Gross Domestic Product (GDP) in Germany contracted 0.2% in the Q4FY2011, compared to the previous quarter. Additionally, imports declined 0.3% (QoQ) in the Q4FY11, while exports decreased 0.8% (QoQ) in the Q4FY11. In fourth quarter, capital investment rose 1.1% from revised 0.3% increase in previous month. Government spending fell to 0.1%, while domestic demand retreated 0.1% and private consumption fell 0.2%.

Consumer sentiment in France improves slightly in February

Consumer sentiment index in France rose to 82.0 in February, from 81.0 in January.

Forex Market Update

PDF- Direct FX_Daily Currency Report 23rd February 2012

This morning, the greenback is trading broadly lower against the major currencies.

The Euro is trading higher, after German business confidence rose more-than-expectations to the highest reading in seven months in February. Moreover, Germany’s leading economic indicator increased for the third consecutive month in December.

IMF Managing Director, Christine Lagarde, indicated that the International Monetary Fund would seek to keep its exposure to Greece under a new bailout package at €30 billion ($39.8 billion), including money still owed from a previous loan.

In its interim economic forecast, the European Commission stated that it now expects the Euro-zone economy to shrink by 0.3% in 2012, with the region undergoing a ‘mild recession’, citing weaker growth momentum at the end of 2011, a softer global economy and the region’s ongoing debt crisis. The commission in November had forecast 2012 growth of 0.5%.

GBP is trading higher this morning after mortgage approvals in the UK rose more-than-expected in January.

The Bank of England policy maker, David Miles stated that monetary policy in the UK needs to be very expansionary to support demand and shore up the UK’s ‘precarious’ economy.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

At 10:40 GMT, the EUR is trading at 1.3314 against the USD, 0.49% higher from the New York close, after an upbeat German economic data. According to IFO, the German Business Confidence Index rose to a reading of 109.6 in February, compared to a reading of 108.3 in January. The Current Conditions Index came in at a reading of 117.5 in February, up from 116.3 in January. Additionally, the Economic Expectation Index improved to 102.3 in February, compared to 100.9 posted in the previous month. During the session, the pair traded at a high of 1.3343 and a low of 1.3232. Yesterday, the EUR strengthened against the USD by 0.06% in the New York session, and closed at 1.3249.

The pair is expected to find its first support at 1.3236 and first resistance at 1.3367.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5714 against the USD, 0.28% higher from the New York close, after British Bankers’ Association (BBA) mortgage approvals rose to 38,092, in January, compared to an upwardly revised 36,553 in December. During the session, the pair traded at a high of 1.5725 and a low of 1.5650. Yesterday, the British Pound fell marginally versus the Dollar in the New York session, and closed at 1.5670, after minutes of Bank of England’s meeting showed that two policy makers wanted a larger increase in asset purchases than the amount finally agreed, raising speculation that the central bank would opt for more easing later in the year.

The pair is expected to find its first support at 1.5667 and first resistance at 1.5743.

USD JPY

The USD is trading at 80.13 against the JPY at 10:40 GMT, 0.18% lower from the New York close, amid profit booking after it rose to a six-month high. During the session, the pair traded at a high of 80.35 and a low of 80.04. In the New York session yesterday, USD rose marginally against JPY, and closed at 80.27.

The pair is expected to find its first support at 79.98 and first resistance at 80.34.

USD CHF

At 10:40 GMT, the USD is trading at 0.9057 against the Swiss Franc, 0.49% lower from the New York close. During the session, the pair traded at a high of 0.9115 and a low of 0.9036. In the New York session yesterday, USD fell 0.18% against CHF, and closed at 0.9102.

The pair is expected to find its first support at 0.9017 and first resistance at 0.9115.

USD CAD

At 10:40 GMT, the USD is trading at 0.9980 against the CAD, 0.17% lower from the New York close. The Canadian dollar is trading higher supported by rising oil prices and after release of positive economic data from Germany. During the session, the pair traded at a high of 1.0011 and a low of 0.9959. Yesterday, USD rose 0.22% against CAD in the New York session, and closed at 0.9997.

The pair is expected to find its first support at 0.9952 and first resistance at 1.0014.

AUD USD

The AUD is trading at 1.0691 against the USD, at 10:40 GMT, 0.53% higher from the New York close. Initially, AUD had come under pressure as Australian Prime Minister, Julia Gillard called a leadership ballot following the resignation of Foreign Minister, Kevin Rudd. During the session, the pair traded at a high of 1.0716 and a low of 1.0598. AUD fell marginally against USD in the New York session yesterday, and closed at 1.0635.

The pair is expected to find its first support at 1.0621 and first resistance at 1.0738.

Gold

At 10:40 GMT, Gold is trading at $1776.80 per ounce, marginally higher from the New York close, amid expectations of further monetary easing. This morning, Gold traded at a high of $1781.05 and a low of $1772.39 per ounce. In the New York session yesterday, the yellow metal rose 1.17%, and closed at $1776.39.

Gold has its first support at $1756.90 and first resistance at $1789.25.

Silver

Silver is trading at $34.58 per ounce, 0.82% higher from the New York close, at 10:40 GMT. This morning, Silver traded at a high of $34.75 and a low of $34.24. Silver strengthened 0.56% against USD in the New York session yesterday, and closed at $34.30.

Silver has its first support at $34.08 and first resistance at $34.92.

Crude Oil

At 10:40 GMT, Oil is trading at $106.28 per barrel, 0.20% higher from the New York close, after a report showed decline in the US crude oil inventories. Late yesterday, American Petroleum Institute (API) reported that crude oil inventories increased 3.55 million barrels for the week ended 17 February. This morning, Oil traded at a high of $106.66 and a low of $105.73. Yesterday, Oil rose 0.09% against USD in the New York session, and closed at $106.03.

It has its first support at $105.69 and first resistance at $106.79.

Economic Snapshot

UK BBA mortgage approvals rose more-than-expected in January

Mortgage approvals in the UK rose to 38,092 in January, compared to an upwardly revised 36,553 in December. Market expected the approvals to rise to 36,250.

German leading index rises in December

According to the Conference Board survey, the leading economic index in Germany rose to 103.9 in December, from 103.6 in November. Meanwhile, the coincident economic index declined to 106.3 in December, from 106.5 in November.

German business confidence rises in February

The Ifo business confidence index in Germany climbed to 109.6 in February, compared to a reading of 108.3 in January. Market had expected the index to advance to 108.8. Meanwhile, the current conditions index edged up to 117.5 in February, compared to a reading of 116.3 in January. Also, the expectations index rose to 102.3 in February from a level of 100.9 in January.

PDF-Direct FX_Daily Currency Report 22nd February 2012

Forex Market Update

This morning, the greenback is trading mostly higher against the major currencies, as relief over Greece’s debt agreement subsided.

The Euro is trading lower this morning, as enthusiasm over European leaders’ agreement on the second bailout package for Greece waned, amid concerns that Greece would find it hard to spur economic growth while implementing its austerity program.

Data released this morning showed that the Euro-zone composite PMI unexpectedly fell in February, while manufacturing PMI in Germany slipped to 50.1 from 51.0 a month ago.

Investor sentiment also dented, after Germany sold €4.3 billion of two-year benchmark Schatz bonds, against expectations of selling €5.0 billion, with the average yield rising to 0.25%, from 0.17% last month.

Economic data from Asia was also not inspiring, with the preliminary result of a survey by HSBC showed that Chinese factory activity shrank for a fourth consecutive month in February.

The GBP was pressured after minutes of the previous BoE policy meeting showed that two of the members called for £75 billion of additional stimulus.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

At 10:40 GMT, the EUR is trading at 1.3233 against the USD, marginally lower from the New York close, after a gauge for business activity in the Euro-zone showed that the region slipped back into contraction in February. The manufacturing PMI in Germany fell to a level of 50.1 in February, while the services PMI declined to a reading of 52.6 in February. Additionally, in Euro-zone, manufacturing PMI rose to 49.0 in February, while the services PMI fell to a reading of 49.4 in February. During the session, the pair traded at a high of 1.3264 and a low of 1.3211. Yesterday, the EUR strengthened against the USD by 0.16% in the New York session, and closed at 1.3235.

The pair is expected to find its first support at 1.3196 and first resistance at 1.3273.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5720 against the USD, 0.41% lower from the New York close. The minutes of the BoE’s latest policy meeting indicated that policy members were unanimous on keeping the benchmark interest rate at the record low of 0.50%, while there was division on the bond purchase target, with two of the members calling for £75 billion of additional stimulus. During the session, the pair traded at a high of 1.5814 and a low of 1.5696. Yesterday, the British Pound fell 0.20% versus the Dollar in the New York session, and closed at 1.5785.

The pair is expected to find its first support at 1.5668 and first resistance at 1.5799.

USD JPY

The USD is trading at 80.13 against the JPY at 10:40 GMT, 0.52% higher from the New York close. In economic news, supermarket sales in Japan fell 1.2% (YoY) in January, from a 0.6% drop in December. During the session, the pair traded at a high of 80.3 and a low of 79.69. In the New York session yesterday, USD rose marginally against JPY, and closed at 79.72.

The pair is expected to find its first support at 79.74 and first resistance at 80.41.

USD CHF

At 10:40 GMT, the USD is trading at 0.9123 against the Swiss Franc, marginally lower from the New York close. During the session, the pair traded at a high of 0.9138 and a low of 0.9104. In the New York session yesterday, USD fell 0.13% against CHF, and closed at 0.9124.

The pair is expected to find its first support at 0.9101 and first resistance at 0.9145.

USD CAD

At 10:40 GMT, the USD is trading at 0.9980 against the CAD, 0.10% higher from the New York close. During the session, the pair traded at a high of 0.9989 and a low of 0.9955. Yesterday, USD rose 0.08% against CAD in the New York session, and closed at 0.9970. The Canadian dollar eased after reports that retail sales in Canada declined in December.

The pair is expected to find its first support at 0.9956 and first resistance at 0.9997.

AUD USD

The AUD is trading at 1.0643 against the USD, at 10:40 GMT, 0.15% lower from the New York close, after a report signaled that China’s manufacturing shrank for a fourth month, spurring concern that Australia’s biggest trading partner, China, is heading towards slow-down. Declines in the AUD were limited after figures from the Statistics Bureau showed that wages in the nation rose 1.0% in Q4 from 0.7%. A separate report indicated that the nation’s leading economic indicators climbed in December. During the session, the pair traded at a high of 1.0686 and a low of 1.0611. AUD fell 0.12% against USD in the New York session yesterday, and closed at 1.0659.

The pair is expected to find its first support at 1.0602 and first resistance at 1.0692.

Gold

At 10:40 GMT, Gold is trading at $1753.58 per ounce, 0.33% lower from the New York close. A leading broker has issued a bullish note for the precious metal and sees a “value opportunity” in gold. This morning, Gold traded at a high of $1760.25 and a low of $1752.57 per ounce. In the New York session yesterday, the yellow metal rose 1.15%, and closed at $1759.45.

Gold has its first support at $1739.77 and first resistance at $1763.85.

Silver

Silver is trading at $34.07 per ounce, 0.72% lower from the New York close, at 10:40 GMT. This morning, Silver traded at a high of $34.39 and a low of $34.02. Silver strengthened 1.73% against USD in the New York session yesterday, and closed at $34.32.

Silver has its first support at $33.63 and first resistance at $34.49.

Crude Oil

At 10:40 GMT, Oil is trading at $105.87 per barrel, 0.10% lower from the New York close, as the US Dollar ticked higher. Weak economic data from China also supported crude prices. Meanwhile, the International Atomic Energy Agency (IAEA) stated that talks held between its inspectors and Iranian authorities on nation’s controversial nuclear program ended without progress. This morning, Oil traded at a high of $106.41 and a low of $105.66. Yesterday, Oil rose 1.33% against USD in the New York session, and closed at $105.98.

It has its first support at $104.65 and first resistance at $106.75.

Economic Snapshot

BoE minutes: Two BoE members wanted bigger February rise in QE

The minutes of the BoE’s latest policy meeting indicated that policy members were unanimous on keeping the benchmark interest rate at the record low of 0.5%, while there was division on the bond purchase target, with two of the members calling for £75 billion of additional stimulus, instead of £50 billion.

German PMI drops in February

The Purchasing Managers’ Index (PMI) for the manufacturing sector retreated to 50.1 in February, from 51.0 recorded in January, while the services PMI declined to 52.6 in February from 53.7 in January. Meanwhile, on a seasonally adjusted basis, the flash composite output index in Germany stood at 52.9 in February, following a reading of 53.9 in January.

French manufacturing Purchasing Managers’ Index rises in February

The flash France manufacturing Purchasing Managers’ Index (PMI) rose to 50.2 in February, compared to a reading of 48.5 in January. Meanwhile, the services PMI declined to 50.3 in February, from a reading of 52.3 in the previous month.

Inflation in France eases slightly in January

On an annual basis, the Consumer Price Index (CPI) in France rose 2.3% in January, compared to a 2.5% growth in December, while the core CPI climbed 1.5% in January. Meanwhile, the Harmonized Index of Consumer Prices (HICP) increased 2.6% (YoY) in January, compared to a 2.7% rise in December.

Euro-zone composite PMI unexpectedly falls in February

The Euro-zone composite output index slipped to 49.7 in February, from 50.4 in January. Also, the manufacturing PMI climbed to 49.0 in February, from 48.8 in January and compared to market expectations for an increase to 49.4. Meanwhile, the services activity index stood at 49.4 in February, compared to a reading of 50.4 in January.

Euro-zone industrial orders increases more-than-expected in December

On a seasonally adjusted monthly basis, industrial new orders in the Euro-zone edged up 1.9% in December, compared to a 1.1% decline in November. Market expected the new orders to increase 0.5%.

Japan supermarket sales drop in January

Supermarket sales in Japan declined 1.2% (YoY) in January, compared to a 0.6% fall in December.

PDF- Direct FX_Daily Currency Report 21st February 2012

Forex Market Update

This morning, the greenback is trading mixed against the major currencies.

The Euro has not managed to hold on its initial gains as uncertainty over Greece’s ability to overcome its debt burden despite the announcement of a new bailout package weighed on risk sentiment.

The Euro-zone Finance Ministers struck the deal for the second bailout for Greece that includes new financing of €130 billion. Private sector holders of Greek debt are expected to take losses of up to 53.5% on the nominal value of their bonds.

Meanwhile, IMF head, Christine Lagarde stated that if Euro-zone members want the IMF to make a “significant” contribution to a second bailout package for Greece, it should strengthen its bailout vehicle, the European Financial Stability Facility, while Greece should also implement the reform pledges it has promised.

Spain sold €2.5 billion in three- and six-month bonds, amid strong demand, with the average yield on the three-month bill declining to 0.396%, from 1.285% last month, while it was 0.779% on the six-month, down from 1.847%.

According to survey conducted by the Institute of Directors’ (IoD), one in two UK business directors think there is a high or very high risk the Euro-zone would disintegrate by the end of 2012.

The greenback traded mostly higher in the New York session yesterday against the key currencies.

EUR USD

At 10:40 GMT, the EUR is trading at 1.3236 against the USD, marginally lower from the New York close, on concern that Greece’s debt crisis would persist even after a second bailout. During the session, the pair traded at a high of 1.3293 and a low of 1.3187. Yesterday, the EUR weakened against the USD by 0.21% in the New York session, and closed at 1.3242.

The pair is expected to find its first support at 1.3184 and first resistance at 1.3290.

GBP USD

At 10:40 GMT, the GBP is trading at 1.5810 against the USD, 0.24% lower from the New York close. In economic news, the public sector net borrowing in the UK showed a surplus of £10.7 billion in January, compared to a deficit of £11.1 billion recorded in December. During the session, the pair traded at a high of 1.5865 and a low of 1.5803. Yesterday, the British Pound fell 0.11% versus the Dollar in the New York session, and closed at 1.5848.

The pair is expected to find its first support at 1.5782 and first resistance at 1.5860.

USD JPY

The USD is trading at 79.80 against the JPY at 10:40 GMT, 0.19% higher from the New York close. In economic news, the All Industry Activity Index in Japan rose 1.3% (MoM) in December. Yesterday, the ratings agency, Standard & Poor’s, warned that it could lower Japan’s sovereign rating if the economy expanded less-than-expected or if public debt continued to grow, as the country’s government struggles to win support for higher taxes. The ratings agency affirmed its ‘AA-’ rating on Japan with a ‘Negative’ outlook. During the session, the pair traded at a high of 79.85 and a low of 79.55. In the New York session yesterday, USD rose 0.22% against JPY, and closed at 79.65.

The pair is expected to find its first support at 79.52 and first resistance at 79.97.

USD CHF

At 10:40 GMT, the USD is trading at 0.9123 against the Swiss Franc, marginally higher from the New York close. Swiss Franc is trading lower, after reports showed that Swiss trade surplus narrowed to CHF1.6 billion in January, compared to a CHF2.0 billion surplus in December. Additionally, M3 money supply in Switzerland rose 8.2% (YoY) in January, compared to 7.4% expansion in previous month. During the session, the pair traded at a high of 0.915 and a low of 0.9083. In the New York session yesterday, USD rose 0.21% against CHF, and closed at 0.9117.

The pair is expected to find its first support at 0.9087 and first resistance at 0.9154.

USD CAD

At 10:40 GMT, the USD is trading at 0.9962 against the CAD, 0.27% higher from the New York close. Trading trends in the pair today are expected to be determined by the release of retail sales and wholesale sales data in Canada. During the session, the pair traded at a high of 0.9968 and a low of 0.9925. Yesterday, USD rose 0.18% against CAD in the New York session, and closed at 0.9935.

The pair is expected to find its first support at 0.9923 and first resistance at 0.9984.

AUD USD

The AUD is trading at 1.0673 against the USD, at 10:40 GMT, 0.74% lower from the New York close, after minutes for the latest monetary policy meeting indicated that the “inflation outlook would provide scope for a further easing in monetary policy” if commodity and raw material demand conditions weaken in the economy. During the session, the pair traded at a high of 1.0757 and a low of 1.0659. AUD fell 0.30% against USD in the New York session yesterday, and closed at 1.0753.

The pair is expected to find its first support at 1.0623 and first resistance at 1.0760.

Gold

At 10:40 GMT, Gold is trading at $1737.51 per ounce, 0.12% higher from the New York close. This morning, Gold traded at a high of $1743.37 and a low of $1730.95 per ounce. In the New York session yesterday, the yellow metal rose 0.08%, and closed at $1735.41.

Gold has its first support at $1729.90 and first resistance at $1744.24.

Silver

Silver is trading at $33.70 per ounce, 0.33% higher from the New York close, at 10:40 GMT. This morning, Silver traded at a high of $33.87 and a low of $33.46. Silver strengthened 0.12% against USD in the New York session yesterday, and closed at $33.59.

Silver has its first support at $33.44 and first resistance at $33.92.

Crude Oil

At 10:40 GMT, Oil is trading at $104.64 per barrel, 0.30% lower from the New York close, as investors booked profits at prevailing higher levels. This morning, Oil traded at a high of $105.06 and a low of $104.52. Yesterday, Oil fell 0.20% against USD in the New York session, and closed at $104.92.

It has its first support at $104.30 and first resistance at $105.21.

Economic Snapshot

UK public sector net borrowing swings to surplus in January

Public Sector Net Borrowing (PSNB) in the UK, including interventions, stood at a surplus of £10.7 billion in January, compared to a deficit of £11.11 billion recorded in the previous month. Meanwhile, the public sector net borrowing excluding interventions recorded a net surplus of £7.8 billion in January.

Trade surplus in Switzerland unexpectedly declines in January

Trade surplus in Switzerland unexpectedly narrowed to CHF1.6 billion in January compared to a CHF2.0 billion surplus in December. Market expected the trade surplus to rise to CHF2.5 billion. Exports declined 3.4% (MoM) in January, compared to 6.4% expansion recorded in December. Meanwhile, on monthly basis, imports rose 3.6% in January, compared to an 8.4% increase in December.

Switzerland M3 money supply grows in January

The Swiss National Bank reported that M3 money supply in Switzerland rose 8.2% (YoY) in January, following a 7.4% expansion in December.

Japanese all industry activity expands in December

On a monthly basis, the all industry activity in Japan grew 1.3% in December, compared to a 1.0% decline in November.

PDF- Direct FX_Daily Currency Report 10th February 2012

Forex Market Update

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

EUR came under pressure, after the European finance ministers withheld the €130 billion aid package to Greece. For securing the bailout package, Greece now needs to detail a further €325 million of spending reductions with a strong political assurance from the leaders of the coalition parties on the implementation of the programme.

Meanwhile, Greece’s major unions have launched a 48-hour nationwide strike today, to protest new austerity measures demanded by the country’s creditors.

Separately, Italian Prime Minister, Mario Monti stated that the European leaders must complement austerity with growth policies, while the International Monetary Fund needs more flexibility in providing aid to halt the Euro-zone’s debt crisis.

The Australian Dollar is trading lower after the Reserve Bank of Australia stated in its quarterly policy statement that there would be scope for easing if the economy slows materially.

Elsewhere, Chinese trade surplus climbed to $27.3 billion in January, compared to a $16.5 billion surplus in the previous month. Both exports and imports fell on an annual basis.

The greenback traded mixed in the New York session yesterday against the key currencies.

EURUSD

At 10:40 GMT, the EUR is trading at 1.3264 against the USD, 0.16% lower from the New York close, after Greek Finance Minister, Evangelos Venizelos stated that his Euro-zone counterparts have refused to approve the €130 billion aid package, demanding additional austerity measures. Moreover, weak economic data from France, also weighed on the EUR. In France, both manufacturing production and industrial production fell 1.4% (MoM) in December, while current account deficit widened to €3.0 billion in December. During the session, the pair traded at a high of 1.3291 and a low of 1.3239. Yesterday, the EUR strengthened against the USD by 0.25% in the New York session, and closed at 1.3284.

The pair is expected to find its first support at 1.3225 and first resistance at 1.3312.

GBPUSD

At 10:40 GMT, the GBP is trading at 1.5836 against the USD, 0.11% higher from the New York close. On the economic front, output price inflation in the UK fell to 4.1% (YoY) in January, compared to a rise of 4.8% in December, while input prices climbed 7.0% in January, compared to an 8.9% rise recorded in the previous month. During the session, the pair traded at a high of 1.5849 and a low of 1.5767. Yesterday, the British Pound fell 0.24% versus the Dollar in the New York session, and closed at 1.5818.

The pair is expected to find its first support at 1.5774 and first resistance at 1.5892.

USDJPY

The USD is trading at 77.73 against the JPY at 10:40 GMT, 0.08% higher from the New York close. Today, Japanese Finance Minister, Jun Azumi stated that Japan would intervene in the foreign exchange market, if necessary, while keeping a close watch on the currency moves. During the session, the pair traded at a high of 77.75 and a low of 77.52. In the New York session yesterday, USD rose 0.54% against JPY, and closed at 77.67.

The pair is expected to find its first support at 77.31 and first resistance at 77.95.

USDCHF

At 10:40 GMT, the USD is trading at 0.9121 against the Swiss Franc, marginally higher from the New York close, after consumer prices in Switzerland declined 0.8% (YoY) in January, compared to 0.7% fall recorded in December. During the session, the pair traded at a high of 0.9137 and a low of 0.9103. In the New York session yesterday, USD fell 0.16% against CHF, and closed at 0.9118.

The pair is expected to find its first support at 0.9092 and first resistance at 0.9147.

USDCAD

At 10:40 GMT, the USD is trading at 0.9983 against the CAD, 0.35% higher from the New York close. Investors are awaiting International Merchandise Trade data for the month of December in Canada, later today. During the session, the pair traded at a high of 0.9995 and a low of 0.9947. Yesterday, USD fell 0.16% against CAD in the New York session, and closed at 0.9948.

The pair is expected to find its first support at 0.9940 and first resistance at 1.0010.

AUDUSD

The AUD is trading at 1.069 against the USD, at 10:40 GMT, 0.90% lower from the New York close, after Reserve Bank of Australia (RBA) lowered its growth forecasts to 3.5% from 4.0% for the year ending June 2012, strengthening speculation of monetary easing. During the session, the pair traded at a high of 1.0790 and a low of 1.0679. AUD fell marginally against USD in the New York session yesterday, and closed at 1.0786.

The pair is expected to find its first support at 1.0638 and first resistance at 1.0782.

Gold

At 10:40 GMT, Gold is trading at $1719.67 per ounce, 0.57% lower from the New York close. The CME Group lowered the trading margins for gold by 11.8%, effective after the close of business on Monday, February 13. This morning, Gold traded at a high of $1734.80 and a low of $1715.13 per ounce. In the New York session yesterday, the yellow metal declined 0.15%, and closed at $1729.44.

Gold has its first support at $1705.58 and first resistance at $1743.29.

Silver

Silver is trading at $33.70 per ounce, 0.61% lower from the New York close, at 10:40 GMT. Late Thursday, the CME Group lowered the trading margin for silver, with effective after the close of business on Monday, February 13, by 13.5%. This morning, Silver traded at a high of $34.06 and a low of $33.43. Silver strengthened marginally against USD in the New York session yesterday, and closed at $33.91.

Silver has its first support at $33.27 and first resistance at $34.29.

Crude Oil

At 10:40 GMT, Oil is trading at $98.79 per barrel, 1.00% lower from the New York close, after the International Energy Agency lowered its estimate for the global oil demand growth in 2012 to 800,000 barrels a day, compared to its previous forecast of 1.1 million barrels a day, citing lowered projections for global economic growth. This morning, Oil traded at a high of $99.86 and a low of $98.53. Yesterday, Oil rose 0.33% against USD in the New York session, and closed at $99.78.

It has its first support at $98.15 and first resistance at $99.80.

Economic Snapshot

UK output price inflation declines to a 14 month low in January

Output price inflation in the UK declined to 4.1% (YoY) in January, compared to a rise of 4.8% in December. Meanwhile, on an annual basis, UK’s core output price index, excluding food, beverages, tobacco and petroleum, rose 2.4% in January. Also, input prices climbed 7.0% in January, compared to an 8.9% rise recorded in December.

German inflation steady in January

On an annual basis, the German consumer price inflation rose 2.1% in January, the same level as reported in December.

Industrial output in France falls more than expected in December

On a monthly basis, industrial production in France retreated 1.4% in December, from a 1.1% increase in the previous month. Markets were expecting the production to fall 0.7%. Also, on a monthly basis, manufacturing production retreated 1.4% in December, compared to a 1.4% rise in the previous month.

French current account deficit widens in December

France’s current account deficit widened to €3.0 billion in December, compared to a revised €2.1 billion deficit recorded in November.

Swiss consumer prices drop in January

On an annual basis, consumer prices in Switzerland dropped 0.8% in January, the most in more than two years, compared to a 0.7% fall in December.