26 October 2017 Daily Analysis
Pound Sterling leading the race amid positive GDP data.
Dollar index was traded lower against a trade-weighted basket of major currencies, last quoted down 0.32% to 93.35 as of writing despite positive new home sales data which hit nearly 10-year high as the gains were being offset by a surge in Pound Sterling amid bullish economic growth in United Kingdom. According to the US Commerce Department, non-defense capital goods orders rose 1.3% in September versus the expected 1% increase, while existing home sales increased 18.9% in September to a seasonally adjusted rate of 667,000 units versus the expected 0.9% decline to 555,000 units. Previously, sentiment toward the Greenback was positive amid growing expectations that Stanford University economist, John Taylor to be appointed as the next Fed chair after his interview that impressed U.S. President Donald Trump. John Taylor favors a hawkish stance toward monetary policy which he implied earlier that Fed should increase interest rates given the current level of both inflation and economic growth in the country. On the other hand, GBP/USD rose by 1% to an 8-day high of $1.3270 following stronger-than-expected U.K. growth data, with Gross Domestic Product (GDP) showing an increase of 1.5% yearly and 0.4% quarterly, catalyzing market sentiment for the Bank of England (BoE) to raise interest rates next week.
In the commodity market, crude oil price extended its losses, down 2 cents at $52.07 a barrel following data released by U.S. Energy Information Administration (EIA) that shown an increase of 856,000 barrels in U.S. crude inventories last week. Otherwise, gold price recouped its losses by 0.39% to $1280.42 a troy ounce following weakness in the Greenback despite bullish economic reports in United States.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 EUR ECB Press Conference
22:30 USD FOMC Member Kashkari Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 05:45 | NZD – Trade Balance (MoM) (Sep) | -1235M | -900M | -1.143M |
| 19:45 | EUR – Deposit Facility Rate | -0.40% | -0.40% | – |
| 19:45 | EUR – ECB Interest Rate Decision (Oct) | 0.00% | 0.00% | – |
| 20:30 | USD – Initial Jobless Claims | 222K | 235K | – |
| 22:00 | USD – Pending Home Sales (MoM) (Sep) | -2.6% | 0.2% | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher prior breaking resistance level at 1.3220. Arrangement of bullish candlesticks and golden-cross as formed by MACD histogram suggest the pair to extend its gains toward the next resistance level at 1.3300.
Resistance level: 1.3300, 1.3440
Support level: 1.3220, 1.3140
EURUSD
EURUSD, H4: EURUSD was traded higher after breaking resistance level at 1.1785. Arrangement of bullish candlesticks and golden-cross as formed by MACD histogram suggest EURUSD to continue trading higher toward the next resistance level at 1.1825.
Resistance level: 1.1825, 1.1870
Support level: 1.1785, 1.1735
USDJPY
USDJPY, H4: USDJPY was traded lower prior its failure to break resistance level at 114.00. The pair is currently testing the support level at 113.50. Successful closure of candlesticks below the said support level would indicate the pair to extend losses toward the next support level at 113.15.
Resistance level: 114.00, 114.30
Support level: 113.50, 113.15
CrudeOIL
CrudeOIL, H1: Crude oil price was traded lower prior retracement from resistance level at 52.20. Upward slope of MACD histogram suggests crude oil price to trade higher but a breakout of the said resistance level is necessary for the commodity to gain further momentum to extend its gains.
Resistance level: 52.20, 52.55
Support level: 51.65, 51.25
GOLD
GOLD_, H1: Gold price was traded higher after breaking resistance level at 1273.95. The commodity is currently testing the next resistance level at 1279.55. Successful closure of candlestick above the said resistance level coupled with upward slope of MACD signal line suggest gold price to extend its gains toward resistance level at 1283.40.
Resistance level: 1279.55, 1283.40
Support level: 1273.95, 1268.55