Commodity bloc currencies well in support today
The commodity bloc currencies are the day’s biggest winners while the Japanese Yen remains the weakest. ADP national employment report showed an increase for the month of March but data came in lower than expected, and the February figure was revised downwards.
So far today the biggest gains go to the commodity bloc currencies (CAD, AUD, NZD) up an average of 1.20%, 0.50%, 1.09% respectively against the majors. The Japanese Yen remains the worst daily performer today as well, losing an average of 2.42% against each of the majors.
Commodity currencies get support from the overall rises in commodities and the resilience in the prices for the latter. Worth noting that today from day’s low to day’s high Gold gained over 1%. The CAD is also getting support from a general improvement in US data and the Fed’s recent comments pointing towards an eventual normalization of policy – we must remember Canada’s close ties with the U.S.
The JPY is dragged lower by the concerns over the Fukushima Nuclear plant and as it is on the losing end in terms of rate differentials when compared to the ECB, FED, and BoE; but also when the “riskier” commodity bloc currencies find support like today.
The Swiss Franc eased marginally against the Euro, USD and the GBP but lost considerably to the commodity bloc currencies. The Swissie lost some ground as some risk appetite made a comeback but also because SNB starts to contrast with those central banks that are currently getting the limelight because they are more prone to “normalize” their monetary policy.
The USD initially lost some ground against the Euro as the ADP National Employment showed that 201’000 jobs were added in March against an expected 203’000. The data for February was also revised lower to 208’000 from the previously published 217’000. The USD’s initial losses did not last long however. So far throughout the day the EUR/USD currency pair traded in the range of 1.4058-1.4127, staying between the first support and first resistance at 1.4058 and 1.4160 respectively.