GCI Forex News - GBP/USD: Pound reverses previous session losses

GBPUSD Movement

For the 24 hours to 23:00 GMT, GBP fell marginally against the USD and closed at 1.6062, as market sentiment was hit by concerns over the US debt ceiling debate.

In the UK economic news, the retail price index climbed 3.1% (YoY) in December, compared to a 3.0% rise in November. Meanwhile, the consumer price index climbed 2.7% (YoY) in December, in line with the market expectations and compared to a similar rise in November. Separately, the producer price index-output fell 0.1% (MoM) in December, compared to a downwardly revised decrease of 0.3% in November, while the producer price index-input decreased 0.2% (MoM) in December, compared to a 0.1% rise in November.

In the Asian session, at GMT0400, the pair is trading at 1.6066, with the GBP trading marginally higher from yesterday’s close.

The pair is expected to find support at 1.6032, and a fall through could take it to the next support level of 1.5999. The pair is expected to find its first resistance at 1.6100, and a rise through could take it to the next resistance level of 1.6135.

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

GCI Forex News - USD/CHF: Pair trading above its MA’s

USDCHF Movement

For the 24 hours to 23:00 GMT, the USD rose 1.08% against the CHF and closed at 0.9227.

In the Asian session, at GMT0400, the pair is trading at 0.9243, with the USD trading 0.17% higher from yesterday’s close.

The pair is expected to find support at 0.9157, and a fall through could take it to the next support level of 0.9072. The pair is expected to find its first resistance at 0.9296, and a rise through could take it to the next resistance level of 0.9349.

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

GCI Forex News - USD/CAD: Canadian Dollar trading lower in the Asian session

USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined marginally against the CAD to close at 0.9837. The Canadian Dollar moved higher after a report showed improved confidence in the domestic business community.

Yesterday, the Bank of Canada’s winter business outlook survey indicated that Canadian firms expect higher sales growth and are planning to step up investment. It indicated that companies have attributed the more optimistic outlook to new strategies they were adopting to remain competitive in a challenging environment rather than to a strong economy or expansion plans.

In the Asian session, at GMT0400, the pair is trading at 0.9840, with the USD trading marginally higher from yesterday’s close.

The pair is expected to find support at 0.9826, and a fall through could take it to the next support level of 0.9812. The pair is expected to find its first resistance at 0.9860, and a rise through could take it to the next resistance level of 0.9880.

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

GCI Forex News - AUD/USD: Aussies reverses previous session gains

AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD strengthened 0.26% against the USD to close at 1.0564.

LME Copper prices declined 0.5% or $41.0/MT to $8029.8/MT. Aluminium prices declined 0.7% or $14.5/MT to $2062.3/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0546, with the AUD trading 0.17% lower from yesterday’s close.

The pair is expected to find support at 1.0532, and a fall through could take it to the next support level of 1.0518. The pair is expected to find its first resistance at 1.0569, and a rise through could take it to the next resistance level of 1.0591.

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

GCI Forex News - USD/JPY: BoJ must set a 2.0% inflation target, indicates Shinzo Abe

USDJPY Movement

For the 24 hours to 23:00 GMT on Friday, the USD weakened 89.19% against the JPY and closed at 89.18. In economic news, the Eco Watchers’ current index in Japan rose to a reading of 45.8 in December, compared to a reading of 40.0 registered in the previous month. Additionally, the outlook index rose to a reading of 51.0 in December, from a reading of 41.9 in the previous month.

In the Asian session, at GMT0400, the pair is trading at 89.57, with the USD trading 0.43% higher from Friday’s close. Over the weekend, the Japanese Prime Minister, Shinzo Abe stressed the need for forceful monetary stimulus and urged the Bank of Japan to set a medium-term inflation target. He stated that the Bank of Japan (BoJ) must set a 2.0% inflation target and make it a medium-term, not long-term goal to show markets that they were determined to pursue bold monetary easing to end nearly two decades of deflation.

The pair is expected to find support at 88.98, and a fall through could take it to the next support level of 88.40. The pair is expected to find its first resistance at 89.91, and a rise through could take it to the next resistance level of 90.26.

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

GCI Forex News - GBP/USD: Downbeat UK economic data weighed on Pound, trading higher in the Asian session

GBPUSD Movement

For the 24 hours to 23:00 GMT on Friday, GBP fell 0.19% against the USD and closed at 1.6134, amid disappointing UK economic data.

On Friday, the annual industrial production fell 2.4% in November, against the expectations of a 1.9% fall and following a 3.0% drop in October. Additionally, manufacturing output decreased unexpectedly by 0.3% in November, after easing 1.3% in the previous month. Market had expected the manufacturing output to grow 0.5%. Annually, manufacturing output retreated 2.1% in November, compared to October’s revised 2.0% decline. Separately, the National Institute of Economic and Social Research reported that UK’s gross domestic product dropped 0.3% in the 4Q FY2012, following a 0.9% increase estimated in the previous year.

In the Asian session, at GMT0400, the pair is trading at 1.6144, with the GBP trading marginally higher from Friday’s close.

The pair is expected to find support at 1.6099, and a fall through could take it to the next support level of 1.6053. The pair is expected to find its first resistance at 1.6180, and a rise through could take it to the next resistance level of 1.6216.

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

GCI Forex News - EUR/USD: Euro extending its Friday’s gains

EURUSD Movement

For the 24 hours to 23:00 GMT on Friday, EUR rose 0.53% against the USD and closed at 1.3343. The Euro on Friday catapulted to its highest level against the Dollar since April 2012, a day after the European Central Bank, Chief Mario Draghi set a bullish tone by not giving any indication the bank would ease monetary policy.

On the economic front, on a calendar adjusted annual basis, industrial production in Spain slipped 7.2% (YoY) in November, following a 3.1% drop recorded in October, whereas in France, the current account deficit remained unchanged at €2.9 billion in November.

Meanwhile, the US Dollar came under pressure, after the US trade deficit widened in November. The budget deficit in the US narrowed to $260.0 million in December, compared to a deficit of $86.0 billion recorded during the same period last year, while trade deficit widened to $48.7 billion in November, from a revised $42.1 billion deficit in October.

In the Asian session, at GMT0400, the pair is trading at 1.3392, with the EUR trading 0.37% higher from Friday’s close, as traders expected that Ben Bernanke’s speech due today evening would dispel the doubts raised on easing by FOMC minutes released recently.

The pair is expected to find support at 1.3292, and a fall through could take it to the next support level of 1.3192. The pair is expected to find its first resistance at 1.3448, and a rise through could take it to the next resistance level of 1.3504.

Trading trends in the pair today would also take cues from industrial production data due to be released in the Euro-zone.

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

GCI Forex News - Crude Oil: Crude Oil gained amid upbeat Chinese trade data and declining Saudi output levels

Crude Oil Movement

Crude Oil prices advanced 0.96% against the USD for the 24 hour period ending 23:00GMT, closing at 94.07, amid news that top world oil exporter, Saudi Arabia had reduced production in response to declining demand and after data released yesterday indicated a surge in China’s December exports.

Saudi Arabia lowered its oil production by 700,000 barrels per day (bpd) to 9 million bpd during the last two months of 2012.

Meanwhile, yesterday in China, trade surplus widened to $31.6 billion December, from a $19.6 billion surplus in November

In the Asian session, at GMT0400, Crude Oil is trading at 93.84, 0.24% lower from yesterday’s close.

Crude oil is expected to find support at 93.27, and a fall through could take it to the next support level of 92.69. Crude oil is expected to find its first resistance at 94.56, and a rise through could take it to the next resistance level of 95.27.

Crude oil is trading between its 20 Hr and 50 Hr moving averages.