17 December 2021 Morning Session Analysis
Pound sterling jumps following unexpected rate hike.
Pound sterling rebounds from its lower level on yesterday following unexpected decision during Bank of England’s policy meeting. On yesterday, Bank of England (BoE) announced to increase its interest rate by 15 basis points from 0.10% to 0.25%. The action was taken as inflationary pressure extended its appreciation for the past few months, topping 10 years high of 5.1% for the month of November. From their statement released, the interest rate hike was undertaken despite lingering Omicron risk as an effort to curb rising prices of consumer goods in the UK. According to BoE, they expect prices of commodities such as crude oil, natural gas and gasoline to appreciate further and rose as high as 6% in spring 2022. The decision made on yesterday was rather unexpected for investors as majority of the market did not priced in for an interest rate hike. As of writing, the pair of GBP/USD rose 0.02% to 1.3328.
In the commodities market, crude oil price was down by 0.33% to $71.59 per barrel. Investors remains fixated upon Omicron which continues to spread rapidly around the world that could jeopardize future demand for crude oil. On the other hand, gold price rose 0.03% to $1798.82 a troy ounce due to weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – Retail Sales (MoM) (Nov) | 0.8% | 0.8% | – |
| 17:00 | EUR – German Ifo Business Climate Index (Dec) | 96.5 | 95.3 | – |
| 18:00 | EUR – CPI (YoY) (Nov) | 4.9% | 4.8% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from higher levels. MACD which illustrate downward momentum suggests the index to be traded lower after a breakout occur at 95.85.
Resistance level: 96.10, 96.35
Support level: 95.85, 95.65
GBPUSD, H4: GBPUSD was traded higher following prior rebound from lower level. MACD which illustrate bullish signals suggests the pair to be traded higher in short-term.
Resistance level: 1.3355, 1.3410
Support level: 1.3290, 1.3220
EURUSD, H4: EURUSD was traded higher following prior rebound from lower level. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 1.1370, 1.1440
Support level: 1.1320, 1.1285
USDJPY, H4: USDJPY was traded higher following prior rebound from lower levels. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 114.35, 114.90
Support level: 113.70, 113.15
AUDUSD, H4: AUDUSD was traded lower following retracement from higher level. MACD which illustrate diminished bullish momentum suggests the pair to be traded lower short-term as technical correction.
Resistance level: 0.7180, 0.7225
Support level: 0.7140, 0.7085
NZDUSD, H4: NZDUSD was traded lower following prior retracement from higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term.
Resistance level: 0.6820, 0.6875
Support level: 0.6735, 0.6670
USDCAD, H1: USDCAD was traded higher following prior rebound from lower levels. MACD which illustrate bullish signals suggests the pair to be traded higher in short-term.
Resistance level: 1.2800, 1.2845
Support level: 1.2765, 1.2730
USDCHF, H1: USDCHF was traded higher following prior rebound from lower level. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.9210, 0.9230
Support level: 0.9190, 0.9165
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from higher levels. MACD which illustrate diminished bullish signal suggests its price to be traded lower in short-term.
Resistance level: 73.00, 75.65
Support level: 70.40, 69.30
GOLD_, H4: Gold price was traded higher following prior rebound from lower levels. MACD which illustrate upward momentum suggests its price to be traded higher in short-term.
Resistance level: 1807.15, 1819.85
Support level: 1791.40, 1776.95