Daily Currency Report(2015.11.04)

Daily Currency Report(2015.11.04)

Source: Direct FX Broker (Review and Forex Rebates up to 85%)

Forex Market Update

This morning, the greenback is trading higher against most of the major currencies, ahead of the US ADP employment change, trade balance and the ISM non-manufacturing PMI data, scheduled to be released in a few hours.

The EUR is trading lower against the USD, after the services PMI in the Eurozone and Germany rose less-than-expected in October, but indicated that the European economy is on a growth path. Yesterday, the ECB Chief, Mario Draghi, reiterated that the central bank would re-examine its comprehensive bond-buying program and further lower interest rates at its December meeting to boost growth and inflation in the Euro-region. He further stated that growth prospects in emerging markets are creating downside risks to the outlook for growth and inflation.

The GBP initially traded higher against the USD, after UK’s services PMI advanced higher-than-estimated in October, suggesting that the UK economy picked up going into fourth quarter. Moving forward, the BoE’s interest rate decision, scheduled tomorrow would garner a lot of market attention.

The Yen edged lower against the USD. Losses in the Japanese Yen were capped, after the nation’s consumer confidence index rose more-than-expected and also the Markit services PMI climbed in October.

Yesterday, the greenback traded mixed in the New York session against the key currencies. Data showed that US factory orders declined more-than-market expectations registering second consecutive month drop in September.

EURUSD

At 10:40 GMT, the pair is trading at 1.0920, with the EUR trading 0.4% lower against USD from the New York close, after the Eurozone services PMI index rose less-than-anticipated in October. The pair witnessed a high of 1.0970 and a low of 1.0914 during the session. The Euro traded 0.14% lower against the US Dollar in the New York session yesterday, with the pair closing the session at 1.0963. The pair is expected to its find support at 1.0893 and its first resistance at 1.0967.

GBPUSD

The GBP is trading at 1.5413 against the USD at 10:40 GMT, marginally lower from the New York close, after UK’s service sector expanded at a faster than expected rate in October. The Pound hit a high of 1.5447 and a low of 1.5410 against the US Dollar this morning. Yesterday, the Pound traded 0.2% higher against the US Dollar in the New York session and ended at 1.5421. Immediate downside, the first support level is seen at 1.5366, while on the upside, the first resistance level is situated at 1.5453.

USDJPY

The US Dollar is trading at 121.25 against the Yen at 10:40 GMT, 0.15% higher from the New York close. Overnight data showed that Japan’s monetary base advanced in October. The pair traded at a high of 121.40 and a low of 121.00 this morning. Yesterday, the US Dollar traded 0.17% higher against the Yen in the New York session and ended at 121.07. Immediate downside, the first support level is seen at 120.9040, while on the upside, the first resistance level is situated at 121.4990.

USDCHF

This morning, at 10:40 GMT, the US Dollar is trading at 0.9902 against the Swiss Franc, 0.1% lower from the New York close. The pair witnessed a high of 0.9937 and a low of 0.9891 during the session. The US Dollar traded 0.15% higher against the Swiss Franc in the New York session yesterday, with the pair closing the session at 0.9912. Immediate downside, the first support level is seen at 0.9875, while on the upside, the first resistance level is situated at 0.9933.

USDCAD

At 10:40 GMT, the pair is trading at 1.3069, with the USD trading 0.06% higher against CAD from the New York close. Going forward, investors would closely monitor Canada’s Ivey manufacturing PMI data for further direction in the CAD. This morning, the pair traded at a high of 1.3088 and a low of 1.3045. The US Dollar declined against the Canadian Dollar in the New York session yesterday, closing 0.37% lower at 1.3061. The pair is expected to its find support at 1.3016 and its first resistance at 1.3145.

AUDUSD

The Australian Dollar is trading at 0.7187 against the US Dollar at 10:40 GMT, marginally lower from the New York close, despite early morning data indicating that Australia’s retail sales grew in line with expectations on a monthly basis in September. In addition to this, the nation’s trade deficit fell to its lowest figure in seven months in September. The pair witnessed a high of 0.7226 and a low of 0.7178 during the session. The Australian Dollar traded 0.19% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7187. The pair is expected to its find support at 0.7150 and its first resistance at 0.7225.

Gold

The precious metal is trading at $1118.00 per ounce at 10:40 GMT this morning, 0.35% higher from the New York close. This morning, the precious metal traded at a high of $1122.30 per ounce and a low of $1114.10 per ounce. Yesterday, gold traded 1.55% lower in the New York session and closed at $1114.10 per ounce, amid a broad rally in global equity markets. Gold has its first support at $1110.30 per ounce and its first resistance at $1129.00 per ounce.

Silver

The precious metal is trading at $15.25 per ounce at 10:40 GMT this morning, 0.07% higher from the New York close. During the session, silver traded at a high of $15.33 per ounce and a low of $15.21 per ounce. In the New York session yesterday, silver fell 0.63% and closed at $15.24 per ounce, tracking losses in gold prices. Silver has its first support at $15.18 per ounce and its first resistance at $15.34 per ounce.

Oil

The commodity is trading at $48.01 per barrel at 10:40 GMT this morning, 0.23% higher from the New York close, ahead of the EIA’s crude oil inventory data. Crude oil hit a high of $48.10 per barrel and a low of $47.44 per barrel during the session. In the New York session yesterday, crude oil rose 3.01% to close at $47.90 per barrel, after concerns over oil supply emerged as a result of disruptions in Libya and Brazil. However, the rise in oil prices were capped after the API reported that crude oil inventory in the US increased by 2.8 million barrels during the last week. Immediate downside, the first support level is seen at $46.77 per barrel, while on the upside, the first resistance level is at $48.81 per barrel.

Economic Snapshot

UK services PMI climbed in October

In October, the services PMI recorded a rise to 54.90 in the UK, higher than market expectations of an advance to a level of 54.50. The services PMI had registered a level of 53.30 in the previous month.

Eurozone services PMI climbed in October

In October, the final services PMI registered a rise to 54.10 in the Eurozone, compared to market expectations of a rise to 54.20. The preliminary figures had indicated an advance to 54.20. In the prior month, services PMI had registered a level of 53.70.

German services PMI registered a rise in October

In October, the final services PMI in Germany climbed to 54.50, compared to market expectations of an advance to 55.20. Services PMI had recorded a level of 54.10 in the previous month. The preliminary figures had indicated a rise to 55.20.

French services PMI registered a rise in October

The final services PMI in France climbed to 52.70 in October, higher than market expectations of a rise to a level of 52.30. The preliminary figures had indicated a rise to 52.30. In the prior month, services PMI had recorded a level of 51.90.

Spanish services PMI climbed in October

In October, the services PMI in Spain registered a rise to 55.90, compared to a level of 55.10 in the prior month. Markets were expecting the services PMI to rise to a level of 55.40.

Japanese consumer confidence index recorded a rise in October

The consumer confidence index climbed to 41.50 in Japan, in October, compared to market expectations of a rise to a level of 40.80. In the prior month, the consumer confidence index had recorded a level of 40.60.

Japanese Markit services PMI advanced in October

The Markit services PMI advanced to 52.20 in Japan, in October, compared to a reading of 51.40 in the prior month.

Chinese Caixin/Markit services PMI index recorded a rise in October

The Caixin/Markit services PMI index registered a rise to 52.00 in October, in China. The Caixin/Markit services PMI index had recorded a level of 50.50 in the prior month.

Australian trade deficit dropped in September

The seasonally adjusted trade deficit in Australia fell to AUD 2317.00 million in September, compared to market expectations of a trade deficit of AUD 2900.00 million. Australia had registered a revised trade deficit of AUD 2711.00 million in the previous month.

Australian retail sales rose as expected in September

The seasonally adjusted retail sales recorded a rise of 0.40% on a MoM basis in September, in Australia, compared to a similar rise in the prior month. Markets were expecting retail sales to rise 0.40%.