GCI Forex News - USD/JPY: Japan’s official reserve assets decline

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD strengthened 1.38% against the JPY and closed at 88.12.

In the Asian session, at GMT0400, the pair is trading at 88.12, with the USD trading marginally higher from yesterday’s close.

Data released this morning indicated that Japan’s official reserve assets fell to $1,268.1 billion as on 31 December 2012, the third consecutive monthly decline and compared to $1,270.9 billion reserves recorded as on 30 November 2012.

The pair is expected to find support at 87.59, and a fall through could take it to the next support level of 87.05. The pair is expected to find its first resistance at 88.44, and a rise through could take it to the next resistance level of 88.75.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

GCI Forex News - GBP/USD: Pound trading lower ahead of the BoE interest rate decision

GBPUSD Movement

For the 24 hours to 23:00 GMT, GBP fell 0.28% against the USD and closed at 1.6015, as the narrowing trade deficit failed to shrug off the prevailing weakness in Pound following a recent raft of disappointing economic releases.

Yesterday, the economic data indicated that visible trade deficit in the UK narrowed to £9.2 billion in November, from a revised deficit of £9.5 billion in October. The total trade deficit decreased to £3.5 billion in November, from a revised £3.7 billion deficit in the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.6012, with the GBP trading marginally lower from yesterday’s close.

The pair is expected to find support at 1.5978, and a fall through could take it to the next support level of 1.5944. The pair is expected to find its first resistance at 1.6060, and a rise through could take it to the next resistance level of 1.6109.

In the UK, investors keenly await the BoE interest rate decision as they speculated that Mervyn King may keep the size of its bond buying program unchanged at £375 billion and the interest rates unchanged at record low 0.50%. However some market participants expect the bank to flag the possibility of rate cuts later in the year.

The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.

GCI Forex News - EUR/USD: Euro trading lower as investors await the ECB policy meeting later today

EURUSD Movement

For the 24 hours to 23:00 GMT, EUR declined 0.22% against the USD and closed at 1.3053, as investors remained cautious ahead of a European Central Bank meeting later today.

However, the European Union President, Herman Van Rompuy stated yesterday that the euro-area economy is likely to resume growth this year after slipping into a recession in 2012.

On the economic front, gross domestic product (GDP) in the Euro-zone declined 0.1% (QoQ) in Q3 of 2012, in line with the previous estimate and following a 0.2% decline registered in the previous quarter. Separately, Germany’s seasonally adjusted industrial production increased 0.2% (MoM) in November, compared to a revised 2.0% drop recorded in the previous year.

Meanwhile in a noteworthy development, Ireland successfully completed an auction of long term bonds, sending strong signals that it is regaining access to markets just over two years after its bailout.

In the Asian session, at GMT0400, the pair is trading at 1.3045, with the EUR trading marginally lower from yesterday’s close.

The pair is expected to find support at 1.3023, and a fall through could take it to the next support level of 1.3. The pair is expected to find its first resistance at 1.3082, and a rise through could take it to the next resistance level of 1.3118.

Trading trends in the pair today are expected to be determined by the outcome of the ECB interest rate decision scheduled later today.

The currency pair is showing convergence with its 20 Hr moving average and is trading below 50 Hr moving average.

GCI Forex News - USD/CHF: Swiss jobless rate remained stable in December

USDCHF Movement

For the 24 hours to 23:00 GMT, the USD rose 0.27% against the CHF and closed at 0.9239.

In Swiss economic news, the seasonally adjusted jobless rate remained unchanged at 3.0% in December, in line with the market expectation.

In the Asian session, at GMT0400, the pair is trading at 0.9245, with the USD trading marginally higher from yesterday’s close.

The pair is expected to find support at 0.9215, and a fall through could take it to the next support level of 0.9185. The pair is expected to find its first resistance at 0.9266, and a rise through could take it to the next resistance level of 0.9287.

The currency pair is trading just above its 20 Hr and 50 Hr moving averages.

GCI Forex News - USD/CAD: Loonie trading lower this morning

USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose marginally against the CAD to close at 0.9866.

On the US economic front, consumer credit increased by more-than-expected $16.0 billion in November, compared to an upwardly revised $14.1 billion increase recorded last month. Meanwhile, the Economic Optimism Index rose to a reading of 46.5 in January, from a reading of 45.1 recorded in December. Separately, the National Federation of Independent Business (NIFB) reported that, on a seasonally adjusted basis, its Small Business Optimism index rose to an annual rate of 88.0 in December, from a reading of 87.5 recorded in the preceding month.

In the Asian session, at GMT0400, the pair is trading at 0.9874, with the USD trading marginally higher from yesterday’s close.

The pair is expected to find support at 0.9850, and a fall through could take it to the next support level of 0.9827. The pair is expected to find its first resistance at 0.9890, and a rise through could take it to the next resistance level of 0.9906.

In economic releases, Canadian housing starts data, scheduled for release later today, is expected to impact trading trends in the pair.

The currency pair is trading just above its 20 Hr and 50 Hr moving averages.

GCI Forex News - AUD/USD: Australian retail sales drop, while new home sales rise in November

AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD strengthened marginally against the USD to close at 1.0512.

LME Copper prices rose 0.7% or $55.0/MT to $8050.3/MT. Aluminium prices rose 1.1% or $22.0/MT to $2026.8/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0503, with the AUD trading marginally lower from yesterday’s close.

This morning, on a seasonally adjusted basis, retail sales in Australia fell by 0.1% (MoM) in November, compared to a flat reading registered in the previous month. Meanwhile, the Housing Industry Association reported that new home sales rose 4.7% (MoM) in November, following a revised 3.6% rise recorded in the previous month.

The pair is expected to find support at 1.0474, and a fall through could take it to the next support level of 1.0445. The pair is expected to find its first resistance at 1.0528, and a rise through could take it to the next resistance level of 1.0552.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

GCI Forex News - USD/JPY: Japanese Yen snaps its yesterday’s gain, trading lower this morning

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD weakened 1.07% against the JPY and closed at 87.27.

Automobile sales in Japan fell 3.4% (YoY) in December, following a 3.3% decline in November.

In the Asian session, at GMT0400, the pair is trading at 87.47, with the USD trading 0.23% higher from yesterday’s close.

This morning, Japanese Finance Minister, Taro Aso, stated that Japan will buy bonds issued by the European Stability Mechanism to help weaken the yen.

The pair is expected to find support at 87.09, and a fall through could take it to the next support level of 86.71. The pair is expected to find its first resistance at 87.99, and a rise through could take it to the next resistance level of 88.51.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

GCI Forex News - GBP/USD: UK to moderately recover in 2013, indicates BCC

GBPUSD Movement

For the 24 hours to 23:00 GMT, GBP rose 0.34% against the USD and closed at 1.6122.

In the UK, the Lloyds Bank reported that employment confidence came in unchanged at a reading of -42.0 in December, compared to the previous month.

In the Asian session, at GMT0400, the pair is trading at 1.6110, with the GBP trading marginally lower from yesterday’s close.

Data released this morning indicated that BRC’s retail sales rose 0.3% (YoY) in December, lower than the 0.4% increase recorded in the previous month. Meanwhile, the British Chambers of Commerce (BCC) has indicated that business sentiment in the UK has risen “markedly” in the last quarter of 2012 and expects the economy to grow modestly in early 2013.

The pair is expected to find support at 1.6045, and a fall through could take it to the next support level of 1.5979. The pair is expected to find its first resistance at 1.6152, and a rise through could take it to the next resistance level of 1.6195.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.