Key Economic Data - Coming Up Today(All Times GMT+2)
The US Dollar has declined against all majors as Crude Oil spiked to $54.24. Crude has risen from last week's low of $43.57 rising $10.50 and 24% since the 29th of January. The dollar is often seen to have a negative correlation with commodity prices, meaning that as commodities rise the dollar tends to weaken and vice versa. The USD has declined against all majors, the steepest declines came against the EUR, GBP, AUD, CAD and to a lesser extent to CHF and the JPY. The Australian dollar recovered all of yesterday's losses which amounted to over 200 pips and has risen above the level pre-RBA interest rate cut. The EURUSD bounced as high as 1.1534 from a low of 1.1312 earlier in the day, and is now trading at 1.1471. The GBPUSD climbed from 1.4990 to touch 1.5200 and is currently just above 1.5150. The Australian Dollar and Canadian Dollar both posted spectacular gains with the AUDUSD rising 225 pips (2.9%) and the USDCAD slumped by 290 pips (2.3%). Although the USD has declined this week Gold is lower by just over 1% having fallen from a weekly open price of $1280 an ounce to a current price of $1264 equating to a $16 decline. Crude Oil has shaved off some of its gains and trades at a rate of $51.94 a barrel.
Overnight Japanese Cash Earnings data showed a rise of 1.6% y/y while last month's data was revised high giving the Yen boost. Chinese HSBC Services PMI fell from 53.4 to 51.8 in a further sign of slowing growth in the world's second largest economy. This morning Spanish Services PMI increased from 54.3 to 56.7 and this adds to the encouraging Manufacturing PMI figures from Spain on Monday. Italian Services PMI rose above 50 climbing from 49.4 to 51.2. The positive signs from the recent manufacturing and services data is encouraging for the two aforementioned economies and the Eurozone as Spain and Italy had been close to requiring a full EU bailout on at least two occasions since 2010. Despite the increase in productivity both are still struggling with deflation as well as excessively high rates of unemployment. Still to be released today Eurozone Final Services PMI and GBP Services PMI. Retail Sales for the Eurozone follow and US ADP Non-Farm Employment Change data. The ADP data is expected to lead to increased volatility and price moves at 13:15GMT. To conclude the day there will be releases on the Final Services PMI, ISM Non-Manufacturing PMI and Crude Oil Inventories all from the US. Volatility and volume is on the increase: trade accordingly!
EURUSD Support areas include 1.14, 1.1325, 1.1250, 1.1200, 1.1150 1.1100, 1.1050, 1.10, 1.0950. Resistance levels above are at 1.15, 1.16, 1.1650, 1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 10 Minute Chart
AUDUSD 10 Minute Chart
Crude Oil 1 Hour Chart
EURUSD Pivot Point Table