GCI Forex News - Gold: Gold trading flat following yesterday’s gains

Gold Movement

Gold prices traded higher by 1.06% against the USD in the 24 hour period ending 23:00GMT, at 1673.95 per ounce, as the dollar weakened against most of its trading counterparts.

In the Asian session, at GMT0400, Gold is trading at 1673.55, marginally lower from yesterday’s close.

Gold is expected to find support at 1660.07, and a fall through could take it to the next support level of 1646.59. Gold is expected to find its first resistance at 1683.00, and a rise through could take it to the next resistance level of 1692.44.

The yellow metal is trading above its 20 Hr and 50 Hr moving averages.

GCI Forex News - Silver: White metal moving southwards this morning

Silver Movement

Silver prices rose 1.60% to the USD30.84 per ounce during the 24 hours ending 23:00GMT.

In the Asian session, at GMT0400, Silver is trading at 30.83, marginally lower from yesterday’s close.

Silver is expected to find support at 30.46, and a fall through could take it to the next support level of 30.09. Silver is expected to find its first resistance at 31.07, and a rise through could take it to the next resistance level of 31.32.

The white metal is trading above its 20 Hr and 50 Hr moving averages.

GCI Forex News - EUR/USD: Euro gained as ECB unanimously left rates unchanged; trading lower this morning

EURUSD Movement

For the 24 hours to 23:00 GMT, EUR rose 1.68% against the USD and closed at 1.3273, after the European Central Bank (ECB) left its benchmark interest rate unchanged at 0.75% in January, in line with market expectations, following the meeting of the Governing Council in Frankfurt. The central bank also maintained its deposit rate at zero and the marginal lending facility rate at 1.50% in January.

Later, the European Central Bank (ECB) President Mario Draghi stated that the euro area may see a gradual recovery later in the year as there are some modest signs of stabilization.

The Euro’s gain was further bolstered by Spain’s bond auction, wherein the Spanish Treasury sold €5.8 billion worth of debt, above the targeted amount of €5 billion, with the yield on five-year bonds down to 3.99% from 4.20% at an auction last week.

On the economic front, the French Harmonized Index of Consumer Prices (HICP) rose at an annual rate of1.5% in December, compared to a 1.6% rise in November. On a monthly basis, the HICP rose 0.4% in December, compared to a 0.2% drop in November.

Separately, industrial production in France rose 0.5% (MoM) in November, following a revised 0.6% decline recorded in October.

In US economic news, initial jobless claims for the week ended 5 January 2013, rose by 4,000 to 371,000, compared to the previous week’s revised figure of 367,000. However, continuing claims for the week ended 29 December 2012, declined to 3.109 million, compared to the preceding week’s revised level of 3.236 million.

Meanwhile, the Federal Reserve Bank of St. Louis President, James Bullard forecasted US economic growth of 3.2% for this year and for 2014, attributing in part the central bank’s recent policy easing. He also expressed doubts over tying the central bank’s $85 billion monthly bond purchases to numerical levels of unemployment and inflation.

In the Asian session, at GMT0400, the pair is trading at 1.326, with the EUR trading 0.10% lower from yesterday’s close.

The pair is expected to find support at 1.3108, and a fall through could take it to the next support level of 1.2957. The pair is expected to find its first resistance at 1.3345, and a rise through could take it to the next resistance level of 1.3431.

In the US investors await the trade balance and monthly budget statement data.

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

GCI Forex News - GBP/USD: Pound gained as the BoE left interest rates at 0.50%; trading lower in the Asian session

GBPUSD Movement

For the 24 hours to 23:00 GMT, GBP rose 0.94% against the USD and closed at 1.6164, after the Bank of England left its monetary policy unchanged.

The Monetary Policy Committee of the Bank of England (BoE) headed by Governor, Mervyn King, voted at a meeting to leave the benchmark interest rates at 0.50% in January, the lowest level since the bank was established in 1694 and retained the size of the Quantitative Easing (QE) programme at £375 billion.

In the Asian session, at GMT0400, the pair is trading at 1.6150, with the GBP trading marginally lower from yesterday’s close.

The pair is expected to find support at 1.6045, and a fall through could take it to the next support level of 1.5941. The pair is expected to find its first resistance at 1.6217, and a rise through could take it to the next resistance level of 1.6284.

Investors keenly eye the NIESR GDP estimate data scheduled to be released later today. Industrial and manufacturing production data in the UK are also awaited.

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

GCI Forex News - USD/JPY: US dollar trading lower in the Asian session

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD strengthened 1.34% against the JPY and closed at 89.31.

Yesterday, Japan’s leading index retreated to a reading of 91.9 in November, from a reading of 92.8 in October. Additionally, the coincident index declined to 90.1 in November, from a reading of 90.7 in the previous month.

In the US, the Commerce Department reported that, on a monthly basis, wholesale inventories in the US increased 0.6% in November, compared to a downwardly revised 0.3% rise recorded in October.

In the Asian session, at GMT0400, the pair is trading at 89.03, with the USD trading 0.31% lower from yesterday’s close.

This morning, the Japanese government approved a ¥10.3 trillion new emergency stimulus package to revive the nation’s economy and stimulate growth. Separately, the merchandise trade deficit in Japan widened more-than-expected to ¥847.5 billion in November, compared to a deficit of ¥450.3 billion recorded in the previous month.

The pair is expected to find support at 88.22, and a fall through could take it to the next support level of 87.42. The pair is expected to find its first resistance at 89.59, and a rise through could take it to the next resistance level of 90.15.

Trading trends in the pair today are expected to be determined by the eco watchers survey’s outlook and current data.

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

GCI Forex News - USD/CHF: US dollar trading higher this morning

USDCHF Movement

For the 24 hours to 23:00 GMT, the USD declined 1.31% against the CHF and closed at 0.9142.

In the US, the Federal Reserve Bank of Minneapolis President, Narayana Kocherlakota stated that, the central bank’s current monetary policy is too tight and might not be enough given the outlook for prices and the job market. He indicated that the US economy would continue to expand slowly over the next two years. He said, “Inflation will run below the Fed’s target of 2.0% over the next two years and the unemployment rate will remain elevated”.

In the Asian session, at GMT0400, the pair is trading at 0.9155, with the USD trading 0.15% higher from yesterday’s close.

The pair is expected to find support at 0.9099, and a fall through could take it to the next support level of 0.9043. The pair is expected to find its first resistance at 0.9239, and a rise through could take it to the next resistance level of 0.9323.

Later today, the Swiss consumer price index data is expected to impact trading trends in the pair.

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

GCI Forex News - USD/CAD: Loonie gained despite weak Canadian economic data

USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.45% against the CAD to close at 0.9833.

On the Canadian economic front, building permits slipped 17.9% (MoM) in the November, compared to a revised 15.9% rise recorded in the previous month. However, the new-house price index climbed 0.1% annually in November, compared to a 0.2% rise in October.

Separately, the Bank of Canada Senior Deputy Governor, Tiff Macklem stated that while growth in the economy is slower than policy makers had expected, expansion would accelerate this year. He also indicated that housing activity is beginning to decline broadly in line with the bank’s expectations.

In the Asian session, at GMT0400, the pair is trading at 0.9833, with the USD trading marginally lower from yesterday’s close.

The pair is expected to find support at 0.9817, and a fall through could take it to the next support level of 0.9801. 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 0.9888.

Trading trends in the pair today are expected to be determined by the release of international merchandise trade data in Canada.

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

GCI Forex News - AUD/USD: Aussie trading broadly flat this morning

AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD strengthened 0.71% against the USD to close at 1.0579.

LME Copper prices rose 0.7% or $58.0/MT to $8116.5/MT. Aluminium prices rose 0.6% or $13.0/MT to $2074.2/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0583, with the AUD trading marginally higher from yesterday’s close.

This morning in China, the consumer price inflation rose to 2.5% annually in December, following a 2.0% rate recorded in November. However, the producer price index (PPI) retreated 1.9% annually in December, from a 2.2% drop recorded in the previous month.

The pair is expected to find support at 1.0552, and a fall through could take it to the next support level of 1.0520. The pair is expected to find its first resistance at 1.0607, and a rise through could take it to the next resistance level of 1.0630.

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