Daily Gold & Currency Trading News Update

The United States dollar finished mixed versus the majors, gaining versus the Japanese Yen, weakening versus the British Pound and unchanged versus the Euro. The United States dollar strengthened during part of the trading day as Greek bond holders failed to reach a settlement on the debt swap plan which spurred some demand for safety.

Stocks ended mixed with Nasdaq rising by 0.09% and the DOW declining by -0.26%. Apple’s revenue which were reported after the end of the trading day, beat estimates and could bring some positive momentum to technology stocks. Crude oil decline by -0.44%, closing at $99.14/Barrel and Gold decline by -0.80% to close at $1,664.90/Ounce. All eyes would be on the FOMC Interest Rate statement later in the day which is expected to remain unchanged at 0.25%.

The Euro finished unchanged versus the dollar after Greek bond talks broke down but investors remain unfazed. S&P threatened to declare Greece in technical default, which is the first for any EU member state since 1999 when the Euro was first introduced. EUR/USD is currently considered bullish as long as it is above the 1.2950 support. The pair still faces many resistance levels around 1.3100. ECB President Mario Draghi would speak at the World Economic Forum in Davos today.

The British Pound gained versus the United State dollar and most other majors after the budget gap narrowed more than forecast. Public sector net borrowing came out better with 10.8B versus 12.4B expected. The Bank of England governor King said that current lower inflation gives room for policy makers to increase bond purchases in order to aid the United Kingdom economy. The gbp/usd continues to be bullish as long as it’s above the 1.5550 support level, with the pair facing strong resistance around 1.5700 and 1.5750. Today, investors await the release of the MPC meeting minute to access the possibility of a wider quantitative easing programme.

The Japanese Yen finish lower versus all sixteen majors after the Bank of Japan cut its economic growth forecast for next year, helping the weakness of the Japanese Yen, with a better than expect services and manufacturing economic releases in the EU and a smaller than expected budget deficit in the United Kingdom, both lowering demand for a safe haven. Technically, the usd/jpy broke above the trading channel; it is a bit between 76.60 and 77.30. The pair faces a strong resistance level at 78.20, but no economic data is expected today.

The Canadian dollar weakened versus the United States dollar after Retail Sales showed a slowing in growth and Crude Oil prices declined. The usd/cad is on a down trend with a strong support around 1.0075. Today Bank of Canada’s governor Kani is due to speak at Davos.