Forex Trading Library

Forex Daily Summary for 13 April

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The Forex daily summary for 13 April features the following key notes:

  • Japan Core machinery orders m/m -0.4% vs. -2.6%
  • Japan PPI y/y 0.7% vs. 0.4%
  • China trade balance 3.1bn vs. 43.4bn
  • Italy industrial production m/m 0.6% vs. 0.5%

The markets opened the week, tuned to the China trade balance, which on disappointing weighed in on the Aussie and the Kiwi dollars. Both the risk currencies declined on the news with the Aussie falling from the open at 0.768 and the Kiwi from 0.754. The intraday weakness only picked up steam as further selling saw both the Aussie and the Kiwi trading near intraday lows. Further China data is due this week including the closely watched GDP numbers, which could further weigh on the currencies.

The Japanese Yen opened the week strong but soon weakened into the European trading session as USDJPY continued to consolidation within the 120 levels, posting an intraday high to 120.847. The currency continues to trade within the larger triangle pattern which could spell a decline in USDJPY.

There was not much of news from Europe today with the exception of the Italian industrial production which rose above estimates of 0.6%. However, the Euro was very subdued as Greece continues to remain the big theme and driver. EURUSD attempted a rally to 1.0615, the daily pivot level before giving up its gains. The triangle pattern points to a further weakness to the downside, with the Euro poised to dip down to 1.05 levels in the near term.

Against other currencies, the Euro remained fairly stronger, especially against the weaker Australian and Kiwi dollars but failed to hold on to any gains against the British Sterling. EURGBP, for the most part was trading sideways after breaking the key support at 0.723 levels.

The British Pound was also seen attempting to stage a rally against the Greenback but failed after hitting an intraday high to 1.463. At the time of writing, GBPUSD looks poised to retest the intraday highs again which could probably propel the currency towards the daily pivot level at 1.464.

Gold futures were seen trading sideways with no clear direction as the precious metal kept hovering near the $1200 psychological level. The lack of market data along with a mixed US Dollar are amongst the few reasons for Gold to practically trade within a range.

WTI Crude Oil futures saw a more positive move as price was seen trading near the $52 handle. The current price action looks to be validating the inverted head and shoulders pattern that was pointed out in last week’s Crude oil weekly report. If the momentum keeps up, Crude Oil could see a test of $54 followed by a test of previous broken support at $55.35

There is not much of news from the US session today which could see the markets continue to move along their broad based theme for the day ahead of an action packed event for the week which includes monetary policy meetings from the ECB and the BoC alongside US inflation and retail sales data and UK CPI and job numbers.

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