UFXMarkets Daily Forex Currency Trading News 23-April-2014

US indices finished Tuesday’s trading in the green with the NASDAQ adding 0.81% to its value, the Dow Jones 0.40%, and the S&P 500 rose by 0.41%. Adding to the positive climate, the Existing Home Sales report came out better than expected at 4.59M vs. 4.57M.
The US Dollar traded mixed against its major counterparts due to gains on Wall Street and better than expected US macro-economic data. Today, the Flash Manufacturing PMI is expected at 56.2 vs. 55.5, and the New Home Sales at 455K vs. 440K.
Gold fell and retraced towards $1,283 an ounce by the end of trading. Crude Oil fell on speculation that the Crude Oil Inventories report due out tomorrow will show a higher than expected result.
The euro rose slightly versus the other majors as the Euro Zone Consumer Confidence report came out as predicted. The EUR/USD is trading in a narrow range between the 1.3780 support and the 1.3820 resistance level. It may succeed in breaking support on Thursday after Central Bank President Mario Draghi’s speech, which should reveal whether we will see an increase in stimulus or a retention of the current plan. Today, the German and French Flash Manufacturing PMI reports are due for release.
The Pound rose against the other major currencies prior to the release of the MPC Asset Purchase Facility Votes and the MPC Official Bank Rate Votes. Both are expected to come out unchanged at 0-0-9. However, any change in the first number could take the Pound higher, breaching the next resistance at 1.6840. The CBI Industrial Order Expectations report is also expected at 7 vs. 6 previously.
The Japanese Yen traded unchanged versus the other major currencies, as no Japanese macro-economic data was released. Should the stock markets in Japan and the US drop, the pair may cross below the support at 101.40 as investors look to the Japanese Yen as a safe haven. The CSPI report is expected today at 0.8% vs. 0.7%.

UFXMarkets Daily Forex Currency Trading News 22-April-2014

US indices finished Monday’s trading in the green with the NASDAQ adding 0.72% to its value, and the Dow Jones adding 0.25%. This was the fifth green day in a row for Wall Street following the strong earnings reports from several companies. Trading volume was very low due to the Easter holiday break. The S&P 500 rose by 0.38%.
Microsoft fell yesterday by 0.17%, closing at $39.84. Facebook rose yesterday by 3.90% ($2.30 per share) and closed at $61. Facebook is expected to publish its earnings report this week.
Gold closed unchanged due to low trading volume. Technically, according to the daily chart, gold is creating a “W” pattern or “Double Bottom” with the support at $1,275 and the resistance at $1,390. As long as gold is trading above support, it might complete this pattern and hit the resistance level within a month. Crossing below support will stop the “W” pattern and take gold back to the support level at $1,240.
The euro fell versus the other major currencies as banks were closed for the Easter break and trading volume was very low. The EUR/USD is at the 50% Fibonacci Retracement level. Should the pair maintain this support level, it may rise towards 1.3820, while crossing below it at 1.3780 may take it back to 1.3760 – its next support level. Today, the banks and the stock markets in Europe will reopen after the Easter break, and the Consumer Confidence report is expected unchanged at 9.
The Pound finished the trading day unchanged versus the US Dollar as British banks were also closed for Easter. The GBP/USD is in a bullish momentum supported by a bullish trend line on the 8-hour chart. No economic data is expected today.
The Japanese Yen fell against its major counterparts as the Japanese Trade Balance came out lower than forecast. The USD/JPY has created a symmetrical triangle pattern with the resistance at 103 and the support at 101.50. Should the pair breach the resistance level, it may rise to 103.75. However, crossing below the support may take it back to 101.00. No economic data is expected today.

UFXMarkets Weekly Forex Currency Trading News 20-April-2014

In currency news, the euro dropped significantly against the US Dollar as the US showed positive economic figures and signs of a reduction in stimulus measures from the Federal Reserve. The US Dollar is still benefitting from unemployment figures hovering around 300,000, and the Philadelphia factory index posted at 16.6 this month, showing strong growth in regional manufacturing.

The euro was last trading at the level of 1.38115, which is a decrease of 0.01%.

Sterling is trading at a level not seen since November 2009 and was one of few currencies to grow against the US Dollar last week. Following the Bank of England’s decision to leave interest rates at 0.5%, the pound reached 1.6842 on Thursday, April 17th, just 0.01% from the post-recession high of 1.69978 in August 2009. A strengthening US economy may prevent sterling from reaching the heights of 2007.

The pound was last trading at the level of 1.67891, which is a decrease of 0.02%.

In commodities news, Gold fell as investors moved away from the safe haven on the back of positive signs for the US economy. In spite of gaining more than US$ 200 since the start of the year, the precious metal struggled to maintain momentum in March and again this week. Some analysts do not see Gold making up for 2013 in 2014, after its price fell almost 30% last year.

Gold was last trading at the level of 1,294.72, which is a decrease of 0.01%.

WTI Crude Oil reached a 6-week high of 104.31, due to a 10 million barrel increase in US WTI stockpiles, positive comments from US Federal Reserve Chair Janet Yellen and the ongoing situation in Ukraine. Brent Crude Oil also rose on the back of the Ukraine crisis, breaking US$ 110 a barrel last week.

Oil was last trading at the level of 104.31, which is an increase of 0.56%.

UFXMarkets Daily Forex Currency Trading News 17-April-2014

Wall Street finished the trading session in the green yesterday, affected by positive macro data and an optimistic speech from Federal Reserve Chair Janet Yellen. The S&P 500 rose by 1.05%, the Dow Jones by 1.00%, and the NASDAQ added 1.30% to its value.
The US Dollar remained unchanged against its major counterparts. Janet Yellen’s prediction about a return to full employment and price stability by the end of 2016 has the backing of many economists. The Industrial Production and Capacity Utilization Rate reports came out with good results. Today, the Philly Fed Manufacturing Index is predicted to come out at 9.6 vs. 9.0 previously, and the Unemployment Claims report at 316K vs. 300K previously.
Gold rose by 0.07%, closing at $1,303 an ounce. Crude Oil rose by 0.13% to close at $103.91 a barrel.
The euro remained unchanged against the US Dollar even after worse than expected economic data in the Euro-zone. The Current Account came out at 21.9B, and the Core CPI worse than predicted at 0.7%. The EUR/USD is trading above the support level of 1.3800. The pair has been holding the bullish trend since the beginning of April, and is expected to climb towards 1.3880 soon. Today, the German PPI report is expected at 0.1%.
The Pound rose against the US Dollar after the Unemployment Rate report came out better than expected at 6.9%, which helped to strengthen the local currency. The GBP/USD is trading above the strong resistance level of 1.6800, and is expected to continue in this positive momentum to around 1.6900. The pair is trading at its highest price ever.
The Canadian Dollar rose against the US Dollar. The USD/CAD is moving towards the support of 1.0970, but is expected to rise later on today towards the resistance of 1.1030. Breaching above this resistance could lead the pair to climb towards 1.1100 areas.

UFXMarkets Daily Forex Currency Trading News 16-April-2014

US indices were very volatile yesterday. The trading day closed with gains after several companies announced better than expected quarterly returns. The S&P 500 rose by 0.68%, the NASDAQ by 0.38%, and the Dow Jones added 0.55% to its value. Technically, according to 1-hour chart, the Dow Jones has crossed above the 50% Fibonacci Retracement level at 16,160, and maintaining this will retain the bullish momentum for the index.
Gold fell by almost 2% after the US Consumer Price index came out better than expected. Crude Oil has been trading between the support level of $103 and the resistance level of $104.50 for the past week. Today, the Crude Oil Inventories report is expected at four million barrels.
The euro finished the day unchanged against the US Dollar following a mixed ZEW Economic Sentiment report. The EUR/USD is maintaining the support level of 1.3788 and is now trading around 1.3815. Today, the CPI and the Core CPI are expected and better than expected results could push the pair higher. Breaching above 1.3850 may cause another jump for the pair to around 1.3900. However, worse than expected data could send the pair down to around to 1.3750.
The Pound experienced a lot of volatility during the day only to finish unchanged following the release of mixed economic data. The CPI report came out unchanged at 1.6%, the PPI Input m/m worse than expected at -0.6% vs. -0.1% , and the HPI better than expected at 9.1% vs. 7.2%. The GBP/USD has strong support at 1.6700 and maintaining this may push the pair towards 1.6800. Crossing below this support will cause a drop to 1.6600. Today, the Claimant Count Change report is expected at -30.2K vs. -34.6K previously and the Unemployment Rate unchanged at 7.2%.
The Canadian Dollar rose after the Manufacturing Sales came out better than expected, only to fall later in the day with the rise in the US Dollar. The USD/CAD is trading in an ascending channel. Resistance is at 1.1020 and breaching this could lead the pair towards 1.1050. Crossing below the support of 1.0945 will halt the ascending channel with a drop to around 1.0860. Today, the Foreign Securities Purchases is expected at 4.57B vs. 1.09B previously, and the Overnight Rate unchanged at 1.00%. Expect volatility today after the release of the BOC Monetary Policy Report and the BOC Rate Statement.

UFXMarkets Daily Forex Currency Trading News 14-April-2014

US indices closed the trading week negative after worse than expected earnings reports for the first quarter of 2014. The NASDAQ fell by 1.17%, the S&P 500 by 0.95%, and the Dow Jones lost 0.89% from its value.

The US Dollar rose against its major counterparts after the sharp drop in the stock market last week. Today, the Core Retail Sales m/m is expected at 0.5% vs. 0.3% previously and the Retail Sales m/m at 0.8% vs. 0.3%.

Commodities continued to rise, with gold rising for the fifth day in a row as investors sought a safe haven against falling markets.

The Euro fell against the other major currencies with the drop in the stock markets last week and the rise in the US Dollar. The EUR/USD again failed to breach the 1.3900 resistance level. The pair is now around the support level of 1.3830. Crossing below this could lead it to another drop to 1.3750. Today, the Industrial Production is expected at 0.3% vs. -0.2% previously.

The Pound fell against the other majors with the rise in the US Dollar. The GBP/USD has created a double top pattern at 1.6800 and the resistance level seems very hard to breach. The pair is more likely to continue dropping towards 1.6650 and even lower to 1.6500. Today, the BRC Retail Sales Monitor is expected.

Last week’s stock market drop sent investors to the safe haven of the Japanese Yen. This is why we saw a drop in the Japanese currency last week to almost its monthly support level of 101.00. Any gains on Wall Street this week could signal a great opportunity to buy the Yen.

UFXMarkets Weekly Forex Currency Trading News 13-April-2014

In currency news, the US Dollar rose following five bearish days in-a-row against major currency counterparts. Stock corrections and indices price drops are leading investors back to the greenback. The Dollar’s biggest gain was against the Canadian Dollar, with the US currency also gaining on the pound and doing slightly better against the euro.

The Canadian Dollar was last trading at the level of 1.09770, which is an increase of 0.39%.

The Australian Dollar also weakened against the US Dollar at the end of last week, but this represented just a small dent in a trend that has seen the Aussie currency rally by 5% in three months. A strong domestic market, increase in production demands from trade partner China and interest rate cuts by the Reserve Bank of Australia have all contributed.

The Australian Dollar was last trading at the level of 1.0643, which is an increase of 0.20%.

In commodities news, WTI Crude Oil continued to rise on the back of strong consumer spending in the US. Five bullish weeks have taken Oil back to the position it held at the end of February, and as high as it’s been this year. WTI Crude Oil has recovered 65% of its price since falling $115 in 2008, but still has some way to go to reach that year’s peak of $145.

Oil was last trading at the level of 103.67, which is an increase of 0.28%.

Gold has traded in a relatively narrow $200 channel for most of the last year but a generally weak dollar and recent stocks corrections have kept Gold in the top half of the range. Some analysts are suggesting that Gold will continue the recent uptrend to once again approach its 2011 highs above $1,800.

Gold was last trading at the level of 1,318.08, which is a decrease of 0.04%.

UFXMarkets Daily Forex Currency Trading News 10-April-2014

US indices traded higher yesterday following the discussion over rates by the Federal Open Market Committee. This eased investor concerns over the timing of potential interest rate increases. The Dow Jones rose by 1.11%, the S&P 500 by 1.09%, and the NASDAQ added 1.72% to its value.

Alcoa shares rose by 3.75%, closing at $13.00 after kicking analysts’ estimates over the first-quarter report.

The US Dollar dipped versus its major counterparts due to the FOMC Meeting Minutes and expectations of a low Import Price Index, which is due for release just prior to US indices trading. Also, the 10-year Bond Auction came out at 2.72|2.8 vs. 2.73|2.9 previously. Today, the Unemployment Claims is expected at 314K vs. 326K previously, and the G20 Meeting is scheduled to take place.

Gold rose by 0.20%, closing at $1312 an ounce. Crude Oil also rose by 1%, closing at $103.35 a barrel as anxiety over the situation in Ukraine overshadowed the Crude Oil Inventories report.

The euro rose versus the US Dollar after the release of the FOMC Meeting Minutes. The EUR/USD has breached the upper band of the Bollinger Bands indicator and has retraced below this band. As long as it maintains this condition, we expect the EUR/USD to form a correction towards 1.3800. No major economic data is expected today.

The Pound rose against the US Dollar after the UK Trade Balance came out as expected at -9.3B — an encouraging sign for investors. The GBP/USD is trading below a solid resistance level of 1.6800. Breaching this resistance level may lead the pair towards 1.6850. Today, the Asset Purchase Facility is expected unchanged at 375B, the Official Bank Rate unchanged at 0.50%, and the MPC is scheduled to announce the Rate Statement during the day.