Daily Commentary

GBP/USD– We have not seen a huge amount of movement from cable, although we saw it make its retreat back to the upside, it seems to have been moving sideways during the UK session today. Construction PMI out at 60.8, remaining the same from the previous number. With data coming up tomorrow such as services PMI, expected at 58.2, we could hopefully see more movement than we have today. Overall not much to be said.

AUD/USD- A fair amount of movement with Aussie today, but with no general direction. Some confusion seems to be present, understandable due to all the data that we have seen such as retail sales at 0.2% up from a previous 0.1%. Important Chinese data was released which was HSBC manufacturing PMI at 49.4 compared to 49.7 which was expected. The interest rate decision remaining the same at 2.5% so no change there. More data being the Current Account numbers out at -5.7B from a previous -11.7B. Like cable, some more movement is expected tomorrow as we have GDP data coming out and it is expected at 1.% (QoQ).

USD/CAD- A leap on the upside in recent hours/days, with good US data such as Factory Orders at 0.7% compared to an expected 0.5%, so this would have accounted for part of the move on the upside due to dollar strength. It seems to have formed a range between 1.0940 and 1.080, and its edging toward the upside currently, with the interest rate decision coming out tomorrow, I can see the range being broken on the upside depending on the result.

EUR/JPY- Euro yen has seen a push on the upside in recent hours, perhaps due to unemployment data coming out at 11.7% from 11.8%, although we saw CPI down at 0.5% which would have pushed it down, but with yen seeming weak, this didn’t matter. Tomorrow we have European data being the GDP and it is expected at 0.2% so expect some movement when that is released. With this being the first time in a while where Euro yen has began to push consistently up, could this be a reversal in trend?

GOLD- With gold plummeting recently, the momentum on the down side seems to have subsided somewhat and now is moving sideways in recent hours. I suspect this is due to oversold conditions and the fact is is stalling in a region where we saw some congestion previously back in December and January. With the equity market slowing down, this is giving gold the support it needs to make a return on the upside.