GCI Forex News - GBP/USD: Pound fell on more dovish than expected BoE’s Inflation report, trading higher in the Asian session

GBPUSD Movement

For the 24 hours to 23:00 GMT, GBP fell 0.23% against the USD and closed at 1.5839, after the BoE lowered its growth forecast for the Q4 FY2012.

Yesterday, the Bank of England (BoE), in its quarterly inflation report, lowered its growth forecast but raised its inflation outlook. The bank projected annual growth of around 2% in two years. It indicated that inflation is likely to be around 1.8% in two years’ time, slightly above August’s 1.7% forecast. Additionally, the Bank of England governor, Mervyn King stated that the UK faces an ‘unappealing combination’ of a subdued economic recovery and above-target inflation.

Moreover, Moody’s Investors Service stated that it would revisit the UK’s ‘AAA’ government debt rating and the current ‘Negative’ outlook next year amid gloomier economic prospects and rising risks from Euro-area crisis.

Meanwhile, economic data released yesterday in the UK offered a mixed picture, wherein number of people claiming unemployment benefits rose by a seasonally adjusted 10,100 in October, compared to expectations for a decline of 5,100, while the unemployment rate ticked down to 7.8% from 7.9% in September, against forecasts for an unchanged reading.

In the Asian session, at GMT0400, the pair is trading at 1.5847, with the GBP trading marginally higher from yesterday’s close.

The pair is expected to find support at 1.5822, and a fall through could take it to the next support level of 1.5797. The pair is expected to find its first resistance at 1.5886, and a rise through could take it to the next resistance level of 1.5926.

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

GCI Forex News - USD/JPY: Yen plunges as Yoshihiko Noda proposes snap elections

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD strengthened 0.93% against the JPY and closed at 80.20. The Yen came under pressure after Japan’s Prime Minister, Yoshihiko Noda, said he was set to dissolve parliament and hold a snap election, raising speculation that elections will pave the way for a new government with a more aggressive stance on monetary easing, undermining demand for Japanese Yen.

In the Asian session, at GMT0400, the pair is trading at 80.79, with the USD trading 0.73% higher from yesterday’s close.

The pair is expected to find support at 79.91, and a fall through could take it to the next support level of 79.03. The pair is expected to find its first resistance at 81.24, and a rise through could take it to the next resistance level of 81.69.

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

GCI Forex News - AUD/USD: Australian consumer inflation expectation drops in November

AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD weakened 0.76% against the USD to close at 1.0365.

LME Copper prices rose 0.4% or $28.5/MT to $7634.8/MT. Aluminium prices rose 1.1% or $21.8/MT to $1965.5/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0369, with the AUD trading marginally higher from yesterday’s close.

Data released today morning indicated that, the consumer inflation expectation in Australia fell to a rate of 2.2% in November, compared to a rate of 2.6% in the previous month.

The pair is expected to find support at 1.0325, and a fall through could take it to the next support level of 1.0281. The pair is expected to find its first resistance at 1.0436, and a rise through could take it to the next resistance level of 1.0503.

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

GCI Forex News - USD/CHF: Swiss PPI declined in October

USDCHF Movement

For the 24 hours to 23:00 GMT, the USD declined 0.13% against the CHF and closed at 0.9472.

Switzerland’s producer price index (PPI) retreated 0.1% (MoM) in October, compared to a 0.3% rise recorded in the previous month.

In the Asian session, at GMT0400, the pair is trading at 0.9458, with the USD trading 0.15% lower from yesterday’s close.

The pair is expected to find support at 0.9438, and a fall through could take it to the next support level of 0.9418. The pair is expected to find its first resistance at 0.9495, and a rise through could take it to the next resistance level of 0.9532.

Trading trends in the pair today are expected to be determined by the release of ZEW expectations survey in Switzerland.

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

GCI Forex News - AUD/USD: Australian Dollar trading higher on improved consumer sentiment

AUDUSD Movement

For the 24 hours to 23:00 GMT, AUD strengthened 0.18% against the USD to close at 1.0444.

LME Copper prices declined 0.3% or $20.0/MT to $7606.3/MT. Aluminium prices rose 0.8% or $14.8/MT to $1943.8/MT.

In the Asian session, at GMT0400, the pair is trading at 1.0452, with the AUD trading marginally higher from yesterday’s close, as the Westpac consumer confidence index in Australia rose 5.2% to 104.3 in November, compared to a reading of 99.2 recorded in the previous month.

The pair is expected to find support at 1.0414, and a fall through could take it to the next support level of 1.0376. The pair is expected to find its first resistance at 1.0473, and a rise through could take it to the next resistance level of 1.0493.

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

GCI Forex News - USD/CAD: Greenback weakens on rising risk appetite

USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.17% against the CAD to close at 1.0017.

In the US economic news, the National Federation of Independent Business’s (NFIB) Small-Business Optimism Index rose to a reading of 93.1 in October, from a reading of 92.8 recorded in September.

In the Asian session, at GMT0400, the pair is trading at 1.0009, with the USD trading marginally lower from yesterday’s close, as investors sought riskier currencies amid improved risk-appetite in the market following some positive news from the Euro-zone. In a bond auction, Greece raised €4.06 billion by selling short term bills yesterday, which would help the nation to repay debts maturing on Friday. Besides, the German newspaper, Bild Zeitung’s report that Germany is planning to bundle a onetime payment of €44 billion rescue package for Greece, instead of the current tranche payment also lifted traders’ appetite for risky bets.

The pair is expected to find support at 0.9988, and a fall through could take it to the next support level of 0.9968. The pair is expected to find its first resistance at 1.0032, and a rise through could take it to the next resistance level of 1.0056.

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

GCI Forex News - USD/JPY: Greenback trading lower against the Yen in the Asian session

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD strengthened 0.18% against the JPY and closed at 79.61.

Yesterday, Japan’s Economy Minister, Seiji Maehara stated that the negative effects on Japan’s economic growth from the ongoing territorial dispute with China could be worse in the October-December quarter than in the just-ended quarter. He also indicated that he expects the Bank of Japan to continue to pursue powerful easing measures and the government and central bank would work together to beat deflation and encourage economic recovery.

In economic news, machine tool orders in Japan fell 6.7% (YoY) in October, compared to a 2.8% drop in September.

In the Asian session, at GMT0400, the pair is trading at 79.29, with the USD trading 0.40% lower from yesterday’s close.

The pair is expected to find support at 79.13, and a fall through could take it to the next support level of 78.97. The pair is expected to find its first resistance at 79.55, and a rise through could take it to the next resistance level of 79.80.

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

GCI Forex News - USD/CAD: Greenback inches higher in the Asian session

USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined marginally against the CAD to close at 1.0001.

In the Asian session, at GMT0400, the pair is trading at 1.0004, with the USD trading marginally higher from yesterday’s close.

The pair is expected to find support at 0.9991, and a fall through could take it to the next support level of 0.9977. The pair is expected to find its first resistance at 1.0012, and a rise through could take it to the next resistance level of 1.0020.

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