Daily Forex Market Roundup

Daily Forex Market Roundup

Daily Forex Market Roundup

Investors Buz   –  Global Markets Roundup

Daily Forex Market Roundup

This morning, the greenback is trading mixed against most of the major currencies, ahead of US Markit manufacturing PMI data, scheduled later today.

The EUR is trading higher against the USD, after Germany’s flash Markit services PMI unexpectedly advanced to a two-month high in July. Meanwhile, the manufacturing PMI fell to a two-month low in the same month. Separately, Eurozone’s flash Markit services PMI fell to the lowest level since January 2015 in July while the preliminary manufacturing PMI dropped to a two-month low in the same month. Yesterday, the ECB held its key interest rate at 0.0%, in-line with market expectations. Moreover, the ECB President, Mario Draghi, stated that the central bank would not hesitate to add fresh stimulus, if UK’s vote to leave the EU starts to weigh on the Eurozone.

The GBP is trading lower against the USD, after data indicated that activity in manufacturing sector entered into contraction territory in July, recording its lowest level since February 2013. Also, the service sector contracted in July, recording its worst reading since March 2009, thus suggesting that the economy is shrinking at the steepest pace in the wake of Brexit vote.

Yesterday, the greenback traded higher in the New York session, against the key currencies, after US initial jobless rate surprisingly fell to a three-month low during the last week, highlighting optimism over the health of the nation’s labor market. Further, existing home sales surprisingly nudged higher on a monthly basis in June, increasing at the fastest pace in nearly ten-years.

 

 

EURUSD

This morning at 09:40 GMT, the EUR is trading at 1.1027 against the USD, marginally higher from the New York close. In economic news, Eurozone’s flash Markit manufacturing PMI fell more than expected and Markit services PMI declined less than anticipated in July. This morning, the pair traded at a high of 1.1040 and a low of 1.1014. The Euro traded 0.14% lower against the US Dollar in the New York session yesterday, with the pair closing the session at 1.1021. Yesterday, the ECB kept its key interest rate unchanged at 0.00%, at par with market expectations. The pair is expected to its find support at 1.0985 and its first resistance at 1.1064.

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GBPUSD

At 09:40 GMT, the pair is trading at 1.3156, with the Pound trading 0.47% lower against US Dollar from the New York close, after UK’s preliminary Markit manufacturing and services PMI dropped more than forecasted in July. The pair witnessed a high of 1.3289 and a low of 1.3147 during the session. Yesterday, the Pound traded 0.33% higher against the US Dollar in the New York session and ended at 1.3218. Immediate downside, the first support level is seen at 1.3106, while on the upside, the first resistance level is situated at 1.3248.

 

USDJPY

This morning, at 09:40 GMT, the US Dollar is trading at 106.16 against the Yen, marginally higher from the New York close. Early this morning, data indicated that Japan’s flash Nikkei manufacturing PMI advanced in July. During the session, the pair traded at a high of 106.28 and a low of 105.54. Yesterday, the US Dollar traded 0.06% higher against the Yen in the New York session and ended at 106.15. The pair is expected to its find support at 105.55 and its first resistance at 106.63.

 

USDCHF

The US Dollar is trading at 0.9847 against the Swiss Franc at 09:40 GMT this morning, 0.14% lower from the New York close. Amid no economic releases in Switzerland today, investor sentiment would be governed by global macroeconomic news. The pair traded at a high of 0.9869 and a low of 0.9839 this morning. Yesterday, the USD traded 0.12% higher against the CHF in the New York session and ended at 0.9861. The pair is expected to its find support at 0.9822 and its first resistance at 0.9889.

 

USDCAD

The pair is trading at 1.3117 at 09:40 GMT this morning, with the USD trading 0.25% higher against CAD from the New York close. Going ahead, investors await the release of Canada’s consumer price inflation data, slated to release in a few hours. The pair traded at a high of 1.3138 and a low of 1.3068 this morning. The US Dollar advanced against the Canadian Dollar in the New York session yesterday, closing 0.35% higher at 1.3084. The pair is expected to its find support at 1.3045 and its first resistance at 1.3163.

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AUDUSD

The pair is trading at 0.7477 at 09:40 GMT this morning, with the Australian Dollar trading 0.2% lower against US Dollar from the New York close. Earlier today, in China, Australia’s largest trading partner, the MNI business sentiment index rose in July. This morning, the pair traded at a high of 0.7507 and a low of 0.7457. The Australian Dollar traded marginally lower against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7492. The pair is expected to its find support at 0.7453 and its first resistance at 0.7505.

 

Gold

Gold is trading at $1324.60 per ounce at 09:40 GMT this morning, 0.5% lower from the New York close. This morning, the precious metal traded at a high of $1334.00 per ounce and a low of $1321.90 per ounce. Yesterday, gold traded 0.89% higher in the New York session and closed at $1331.20 per ounce, as decline in global equity markets increased demand for safe haven yellow metal. Immediate downside, the first support level is seen at $1314.80 per ounce, while on the upside, the first resistance level is at $1334.20 per ounce.

 

Silver

The precious metal is trading at $19.71 per ounce at 09:40 GMT this morning, 0.76% lower from the New York close. During the session, silver traded at a high of $20.02 per ounce and a low of $19.67 per ounce. In the New York session yesterday, silver rose 2.24% and closed at $19.86 per ounce, tracking gains in gold prices. Immediate downside, the first support level is seen at $19.36 per ounce, while on the upside, the first resistance level is at $20.04 per ounce.

 

Oil

The commodity is trading at $44.65 per barrel at 09:40 GMT this morning, marginally lower from the New York close, ahead of the Baker Hughes US oil rig count data, scheduled to be released later today. Crude oil witnessed a high of $44.90 per barrel and a low of $44.25 per barrel during the session. In the New York session yesterday, crude oil fell 1.72% to close at $44.67 per barrel, amid ongoing concerns over global crude glut. Immediate downside, the first support level is seen at $43.96 per barrel, while on the upside, the first resistance level is at $45.62 per barrel.

READ  Japanese manufacturing PMI declined in March

 

Economic Snapshot

 

UK services PMI recorded a drop in July

In the UK, the services PMI fell to a level of 47.40 in July, compared to a level of 52.30 in the prior month. Markets were expecting the services PMI to ease to a level of 48.80.

 

UK manufacturing PMI declined in July

In July, the manufacturing PMI recorded a drop to 49.10 in the UK, compared to market expectations of a drop to 48.70. In the prior month, the manufacturing PMI had recorded a level of 52.10.

 

Eurozone services PMI declined in July

The flash services PMI eased to 52.70 in the Eurozone, in July, compared to market expectations of a drop to 52.30. Services PMI had registered a reading of 52.80 in the prior month.

 

European Central Bank maintained its key interest rate

The European Central Bank kept its key interest rate steady at 0.00%, at par with market expectations 0.00%.

 

Eurozone manufacturing PMI declined in July

In July, the flash manufacturing PMI eased to 51.90 in the Eurozone, compared to market expectations of a drop to a level of 52.00. In the prior month, the manufacturing PMI had registered a level of 52.80.

 

German manufacturing PMI slid in July

The flash manufacturing PMI eased to 53.70 in Germany, in July, higher than market expectations of a drop to 53.40. In the previous month, manufacturing PMI had recorded a reading of 54.50.

 

German services PMI surprisingly advanced in July

The preliminary services PMI recorded an unexpected rise to a level of 54.60 in July, in Germany, compared to market expectations of a drop to a level of 53.20. In the prior month, services PMI had registered a reading of 53.70.

 

Japanese manufacturing PMI climbed in July

In July, the preliminary manufacturing PMI in Japan advanced to 49.00. In the prior month, manufacturing PMI had recorded a level of 48.10.

 

Chinese MNI business sentiment index advanced in July

The MNI business sentiment index rose to a level of 55.50 in July, in China. The MNI business sentiment index had recorded a reading of 54.50 in the previous month.

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