Positive News from US Banks
CURRENCY TRADING SUMMARY – 14th April (00:30GMT)
·U.S. Dollar Trading (USD) abruptly reversed direction weakening nearly all day as Global stocks reacted to Chinese/Japanese stimulus plans along with speculation US bank earnings would beat forecasts. Goldman Sachs Q1 beat expectations at $3.39 vs. $1.64 forecast. Crude Oil closed down $2.19 ending the New York session at $50.05 per barrel. In US share markets, the Nasdaq was up 1 points or 0.05% whilst the Dow Jones was down 25 points or 0.32%. Looking ahead, US Retail Sales (Mar) forecast at 0.3% vs. -0.1% previously. Also released PPI (Mar) forecast flat at 0.0%. Also today, Obama and Bernanke give major Economic speeches.
·The Euro (EUR) surged after finding support in the low 1.3100s before the rallying over 200 pips as the USD weakened across the board. The Sharp reversal throws up the Technical direction of the market with selling on rallies now more dangerous than previously with the Key 1.31 level holding firm over the last month. Overall the EUR/USD traded with a low of 1.3128 and a high of 1.3391 before closing at 1.3380.
·The Japanese Yen (JPY) lost ground against the USD but the 100 Yen level held firm supported by buoyant crosses. EUR/JPY and AUD/JPY were especially strong both making substantial gains. The Main news in Asia was the Japanese $150bn stimulus package. Future direction will require the stock rally to at least maintain gains. Overall the USDJPY traded with a low of 99.88 and a high of 100.71 before closing the day around 100.10 in the New York session.
·The Sterling (GBP) surged out the recent trading range breaking above 1.4800 as improving banking sentiment supported. 1.5000 looms as the topside target although sustained gains will require US banking results to be shock free. Overall the GBP/USD traded with a low of 1.4607 and a high of 1.4870 before closing the day at 1.4840 in the New York session.
·The Australian Dollar (AUD) opened sharply higher testing 0.7300 before easing back to 0.7200 in early Asia. The improving market sentiment and strong metal prices overnight helped the Aussie break back above 0.7300 to finish very well supported. Overall the AUD/USD traded with a low of 0.7188 and a high of 0.7326 before closing the US session at 0.7320. Looking ahead, March Business Confidence previously at -22.
·Gold (XAU) rallied as the USD strengthened concerns about future inflation supported. Overall trading with a low of USD$883 and high of USD$899 before ending the New York session at USD$893 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2987 |
1.3090 |
1.3370 |
1.3420 |
1.3592 |
|
USD/JPY |
98.23 |
99.32 |
100.10 |
100.87 |
101.44 |
|
GBP/USD |
1.4450 |
1.4584 |
1.4860 |
1.4959 |
1.4986 |
|
AUD/USD |
0.7034 |
0.7170 |
0.7320 |
0.7355 |
0.7738 |
|
XAU/USD |
852.00 |
865.00 |
893.00 |
909.00 |
933.00 |
·Euro – 1.3370
Initial support at 1.3090 (Apr 10 low) followed by 1.2987 (Mar 18 low). Initial resistance is now located at 1.3420 (April 7 high) at followed by 1.3592 (Mar 27 high)
·Yen – 100.10
Initial support is located at 99.32 (Apr 8 low) followed by 98.23 (Apr 1 low). Initial resistance is now at 100.87 (Apr 8 high) followed by 101.44 (Apr 6 high).
·Pound – 1.4860
Initial support at 1.4584 (Apr 7 low) followed by 1.4450 (Apr 2 low). Initial resistance is now at 1.4959 (Apr 6 high) followed by 1.4986 (Feb 9 high).
·Australian Dollar – 0.7320
Initial support at 0.7170 (Apr 10 high) followed by the 0.7034 (Apr 8 low). Initial resistance is now at 0.7355 (Oct 7 high) followed by 0.7738 (Oct 6 high).
·Gold – 893
Initial support at 865 (Apr 6 low) followed by 852 (Jan 23 low). Initial resistance is now at 909 (Apr 1 high) followed by 933 (Mar 26 high).
