07 March 2018 Daily Analysis
Trade jitters hit on dollar.
Dollar index fell against its major peers by 0.40% to 89.44 as of writing following increased concern by market participants that economic adviser Gary Cohn could resign from the White House if President Trump decides to proceed with his plans to impose tariffs on steel and aluminium. The former Wall Street banker was known as a defender against protectionist forces within the Trump administration. Thus, his leaving could cast greater fears over tariff hawks. Moreover, risk sentiment in the market subsided on yesterday following reports that North and South Korea have agreed to hold a summit next month, a sign of easing tension in the peninsula. The report has spurred higher risk taking among investors, shifting their focus towards other major currencies while selling off US dollar in relation to trade war risk arising from Washington. On the contrary, EUR/USD was traded higher by 0.07% to $1.2412 as of writing following speculation that European Central Bank (ECB) could drop its easing bias at a policy meeting this week.
In the commodities market, crude oil price rose by 3 cents to $62.15 per barrel following increased market sentiment towards Energy Information Administration (EIA) to show an increase in crude stockpiles by about 2.7 million barrels. Likewise, gold price rose 0.10% to $1334.90 following an ongoing dollar weakness.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
09:30 USD FOMC Member Kaplan Speaks
20:30 GBP Annual Budget Release
21:00 USD FOMC Member Bostic Speaks
21:20 USD FOMC Member Dudley Speaks
23:00 CAD BoC Rate Statement
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 08:30 | AUD – GDP (QoQ) (Q4) | 0.7% | 0.5% | 0.4% |
| 16:30 | GBP – Halifax House Price Index (YoY) (Feb) | -0.6% | 0.4% | – |
| 18:00 | EUR – GDP (QoQ) (Q4) | 0.6% | 0.6% | – |
| 21:15 | USD – ADP Nonfarm Employment Change (Feb) | 234K | 194K | – |
| 21:30 | USD – ADP Nonfarm Productivity (QoQ) (Q4) | -0.1% | -0.1% | – |
| 21:30 | CAD – Trade Balance (Jan) | -3.19B | -2.50B | – |
| 23:00 | CAD – BoC Interest Rate Decision | 1.25% | 1.25% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 3.019M | – | – |
| 23:30 | CrudeOIL – Gasoline Inventories | 2.483M | -0.190M | – |
GBPUSD
GBPUSD, Daily: GBPUSD was traded higher after it breaks resistance level at 1.3860. MACD histogram that portrays diminishing bearish momentum would suggest the pair to extend its gains towards the resistance level at 1.4070.
Resistance level: 1.4070, 1.4370
Support level: 1.3860, 1.3750
EURUSD
EURUSD, H4: EURUSD was traded higher following successful breakout at resistance level 1.2390. Arrangement of bullish candlesticks and MACD histogram that displays ongoing bullish momentum would suggest the pair to extend its gains towards the resistance level at 1.2450.
Resistance level: 1.2450, 1.2540
Support level: 1.2390, 1.2340
USDJPY
USDJPY, H4: USDJPY was traded higher prior rebound from support level at 105.20. However, MACD histogram that portrays diminishing bullish momentum would suggest the pair to extend its losses towards the previous low.
Resistance level: 106.70, 107.80
Support level: 105.20, 103.60
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower following failure to break resistance by 200-MA line. MACD histogram that displays diminishing bullish momentum would suggest the commodity price to extend its losses if breakout at the support level 61.80 is successful.
Resistance level: 63.20, 64.60
Support level: 61.80, 60.90
GOLD
GOLD_, H1: Gold price was traded higher following breakout at resistance level 1335.20. However, MACD histogram that shows diminishing bullish momentum would suggest the safe-haven asset price to extend its losses if breakout at its previous high is successful.
Resistance level: 1345.00, 1354.50
Support level: 1335.20, 1326.80