Currency snapshot (major pairs)

Dollar index trading at 100.70 (-0.02%)

Strength meter (today so far) – Euro -0.27%, Franc -0.14%, Yen -0.20%, GBP -0.60%

Strength meter (since last week) – Euro -0.23%, Franc -0.44%, Yen +0.54%, GBP -1.14%

EUR/USD –

Trading at 1.062

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support          

• Long term – 1.032, Medium term – 1.05, Short term – 1.06

Resistance –

• Long term – 1.09, Medium term – 1.085, Short term – 1.085

Economic release today –

• NIL

Commentary –

• The euro declined further as political uncertainties grow with Hungary, Poland, and Slovakia protesting EU migrant quota system.

GBP/USD –

Trading at 1.24

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – range/sell

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.27, Short term – 1.27

Economic release today –

• NIESR forecasted 0.5 percent GDP growth in the first quarter.
• Industrial production grew by 2.8 percent y/y and manufacturing production grew by 3.3 percent y/y.
• Trade balance deteriorates to -£3.66 billion.

Commentary –

• Pound pushed lower on weaker NIESR GDP data. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 110.6

Trend meter –

• Long term – Sell, Medium term – Range/ Buy, Short term – Range/Buy

Support –

• Long term – 107, Medium term – 109, Short term – 109

Resistance –

• Long term – 121, Medium term – 119, Short term – 115

Economic release today –

• Labor cash earnings grew by 0.4 percent in February.
• Leading economic index declines to 104.4 in February. Coincident index improves to 115.5

Commentary –

• The yen remains the best performer of the week, however, failed to gain much from today attack on Syria by the US.

USD/CHF –        

Trading at 1.006

Trend meter –

• Long term – Buy, Medium term – Range/Buy, Short term – Range

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• Unemployment rate for March came at 3.3 percent.
• Forex reserve grew to 683 billion.

Commentary –

• Franc is likely to consolidate around parity.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14