GCI Forex News - USD/CHF: Swiss Franc trading lower against the US dollar in the Asian session

USDCHF Movement

For the 24 hours to 23:00 GMT on Friday, the USD rose 0.25% against the CHF and closed at 0.9152.

In the Asian session, at GMT0400, the pair is trading at 0.9163, with the USD trading 0.11% higher from Friday’s close.

The pair is expected to find support at 0.9134, and a fall through could take it to the next support level of 0.9106. The pair is expected to find its first resistance at 0.9185, and a rise through could take it to the next resistance level of 0.9207.

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

GCI Forex News - USD/JPY: US Dollar reverses previous session losses this morning

USDJPY Movement

For the 24 hours to 23:00 GMT on Friday, the USD weakened 0.24% against the JPY and closed at 84.23, after the University of Michigan reported that its index of consumer sentiment unexpectedly deteriorated in December to 72.9 from a reading of 74.5 the previous month. Market had expected the index to improve to 74.7.

In the Asian session, at GMT0400, the pair is trading at 84.36, with the USD trading 0.16% higher from Friday’s close.

The pair is expected to find support at 84.00, and a fall through could take it to the next support level of 83.64. The pair is expected to find its first resistance at 84.61, and a rise through could take it to the next resistance level of 84.86.

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

GCI Forex News - EUR/USD: Fiscal-cliff drama to dominate Christmas week

EURUSD Movement

For the 24 hours to 23:00 GMT on Friday, EUR declined 0.38% against the USD and closed at 1.3188, as investor risk appetite continued to decrease a day after the Republican “Plan B” effort to avoid the fiscal cliff resulted in a failure.

However, over the weekend, US President, Barack Obama urged the lawmakers to accept a scaled backed deal, including an extension of tax rates for households with income below $250,000, to avert the “fiscal cliff” in time.

Over the weekend, the European Commission indicated that it intends to give Spain, France and several other Euro-zone states more time to cut their public deficits below the target limit of 3% of GDP.

On the economic front, consumer sentiment in Germany is expected to drop to 5.6 in January, from a revised value of 5.8 in December. Meanwhile, the business confidence indicator for the manufacturing industry in France rose to a reading of 89.0 in December, compared to a reading of 88.0 recorded in November.

Separately, in the US, the personal spending climbed 0.4% in November, compared to an upwardly revised 0.1% drop recorded in the previous month. Separately, the Federal Reserve Bank of Kansas City reported that its manufacturing activity index rose to a reading of -2.0 in December, from a reading of -6.0 posted in November.

In the Asian session, at GMT0400, the pair is trading at 1.3185, with the EUR trading marginally lower from Friday’s close.

The pair is expected to find support at 1.3152, and a fall through could take it to the next support level of 1.3119. The pair is expected to find its first resistance at 1.3225, and a rise through could take it to the next resistance level of 1.3265.

With no major economic news in the US and Europe, investors keenly await Washington lawmakers to come back for the 27th to start again with ‘fiscal cliff’ negotiations. Investors will be looking for any effort this week to salvage negotiations to avert billions in automatic tax hikes and spending cuts due to begin in the new year, unless a deal is reached.

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

GCI Forex News - GBP/USD: UK House prices declines in December, indicates Hometrack

GBPUSD Movement

For the 24 hours to 23:00 GMT on Friday, GBP fell 0.61% against the USD and closed at 1.6172, as investors sought safety in the greenback amid fears that political differences may hold up fiscal reforms in the US, thereby leading to a possible recession.

In the UK, the gross domestic product (GDP) stood at 0.9% (QoQ) in the Q3 FY2012, from 1.0% in the preceding quarter. Meanwhile, the seasonally adjusted current account deficit narrowed to £12.8 billion in the Q3 FY2012, following a revised deficit of £17.4 billion in the previous quarter. On a quarterly basis, business investments advanced 3.8% in the Q3 FY2012, from 3.7% in the Q2 FY2012. Separately, public sector net borrowing increased to £15.3 billion in November, from a borrowing of £6.0 billion in the previous month. Moreover, the index of services declined 1.1% in the three months ended October, compared to a 1.2% rise in the three months ended September.

In the Asian session, at GMT0400, the pair is trading at 1.6171, with the GBP trading marginally lower from Friday’s close.

Data released this morning in the UK indicated that Hometrack house prices retreated 0.1% (MoM) in December, compared to a similar decline recorded in the previous month.

The pair is expected to find support at 1.6123, and a fall through could take it to the next support level of 1.6075. The pair is expected to find its first resistance at 1.6240, and a rise through could take it to the next resistance level of 1.6308.

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

GCI Forex News - Crude Oil: Trading lower in the Asian session

Crude Oil Movement

Crude Oil prices advanced 0.46% against the USD for the 24 hour period ending 23:00GMT, closing at 90.05, as investor sentiment improved following upbeat US economic data and amid demand from bottom fishers, wiping out earlier losses sustained on fears that the US budgetary impasse may cool growth next year and crimp demand for energy and fuels in the process.

In the Asian session, at GMT0400, Crude Oil is trading at 89.15, 1.00% lower from yesterday’s close.

Crude Oil is expected to find support at 88.54, and a fall through could take it to the next support level of 87.93. Crude oil is expected to find its first resistance at 90.15, and a rise through could take it to the next resistance level of 91.15.

Crude Oil is trading below its 20 Hr and 50 Hr moving averages.

GCI Forex News - Silver: White metal fell in line with decline in industrial metal prices

Silver Movement

Silver prices declined 3.50% to the USD29.98 per ounce during the 24 hours ending 23:00GMT, as investors exercised caution over negotiations to avert the fiscal cliff in the US.

The white metal has been under heavy selling pressure in recent sessions, in line with fall in industrial metal prices and amid profit booking ahead of the end of the year.

In the Asian session, at GMT0400, Silver is trading at 29.73, 0.83% lower from yesterday’s close.

Silver is expected to find support at 29.14, and a fall through could take it to the next support level of 28.55. Silver is expected to find its first resistance at 30.78, and a rise through could take it to the next resistance level of 31.83.

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

GCI Forex News - Gold: Yellow metal headed south as prices dip below $1650 per ounce

Gold Movement

Gold prices traded lower by 1.15% against the USD in the 24 hour period ending 23:00GMT, at 1648.44 per ounce, as the Euro fell against the dollar and talks to avoid a fiscal crisis in the US seemed to stall again, turning away investors from the precious metal.

In the Asian session, at GMT0400, Gold is trading at 1641.66, 0.41% lower from yesterday’s close.

Gold is expected to find support at 1627.58, and a fall through could take it to the next support level of 1613.50. Gold is expected to find its first resistance at 1663.85, and a rise through could take it to the next resistance level of 1686.04.

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

GCI Forex News - AUD/USD: Aussie plunges on RBA report, broker views

AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD rose marginally against the USD to close at 1.0479. The Reserve Bank of Australia (RBA), in its monthly bulletin, forecasted weak growth for the nation in 2013, citing continuing weakness in the mining sector, high labor costs and the strong Australian Dollar. Additionally, the government announced that it was revising its earlier forecast of a budget surplus for the fiscal year ending in June, 2013.

LME Copper prices declined 1.5% or $120.0/MT to $7825.3/MT. Aluminium prices declined 2.0% or $40.8/MT to $2031.8/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0450, with the AUD trading 0.28% lower from yesterday’s close. Adding to the Aussie Dollar’s woes today morning were comments from a leading broker that other sectors of the Australian economy, such as housing and retail, are not recovering quickly enough to make up for the rapidly declining mining sector.

The pair is expected to find support at 1.0426, and a fall through could take it to the next support level of 1.0401. The pair is expected to find its first resistance at 1.0487, and a rise through could take it to the next resistance level of 1.0524.

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