08 May 2018 Daily Analysis
Dollar remains supported over Euro weakness and Bostic’s speech.
Dollar index was traded higher against a trade-weighted basket of major currencies by 0.16% to 92.50 as of writing following weakness in the Euro and hawkish statement by the Fed President Raphael Bostic. Overnight, Bostic reiterated his support for two further rate hikes this year after stating his comfort with “some overshoot” of inflation in U.S, thus leading to an increase in market optimism towards the Federal Reserve to increase its interest rates at a more aggressive pace this year. On the contrary, Greenback received extended bullish momentum following a softer German factory orders that gave an actual reading of -0.9% versus the expected reading for 0.5% increase. The weaker-than-expected data has trimmed traders’ bets on the European Central Bank to unwind their monetary policy stimulus within a short timeframe, leading to EUR/USD to fall 0.29% to $1.1930.
In the commodities market, crude oil price fell 0.9% to $70.00 per barrel while investors sell off their position on the commodity amid Trump’s announcement on his decision whether sanctions on Iran will be reimposed. Likewise, gold price fell 0.05% to $1313.00 a troy ounce after it is being weighed on by increased market prospect towards further rate hike by Fed this year.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:15 USD Fed Chair Powell Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – Retail Sales (MoM) (Mar) | 0.6% | 0.2% | 0.2% |
| Tentative | CNY – Trade Balance (USD) (Apr) | -4.98B | 27.50B | – |
| 14:00 | EUR – German Industrial Production (MoM) (Mar) | -1.6% | 0.8% | – |
| 14:00 | EUR – German Trade Balance (Mar) | 19.2B | 19.9B | – |
| 15:30 | GBP – Halifax House Price Index (YoY) (Apr) | 2.7% | 3.3% | – |
| 22:00 | USD – JOLTs Job Openings (Mar) | 6.052M | 6.020M | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | 3.427M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower after breaking support level at 1.3600. However, MACD that shows increasing bullish momentum would suggest the pair to trade higher towards the resistance level at 1.3600.
Resistance level: 1.3600, 1.3780
Support level: 1.3440, 1.3270
EURUSD
EURUSD, H4: EURUSD was traded lower after breaking support level at 1.1940. However, positive divergence as displayed by MACD signal line would suggest the pair to extend its gains if breakout at the previous low is successful.
Resistance level: 1.1940, 1.2010
Support level: 1.1870, 1.1770
USDJPY
USDJPY, H4: USDJPY was traded lower after breaking support level at 109.20. MACD signal line that shows a death-cross would suggest the pair to extend its losses if candlestick successfully closes below the support level at 109.00
Resistance level: 109.00, 109.20
Support level: 108.60, 108.00
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower prior retracement from resistance level at 70.90. MACD that displays a death-cross would suggest the commodity price to undergo short-term losses before continuing its bullish bias.
Resistance level: 70.90, 73.70
Supprort level: 69.80, 68.70
GOLD
GOLD_, H1: Gold price was traded lower prior retracement from resistance level at 1316.40. A lack of significant indication from both MACD and candlestick pattern would suggest to wait for confirmation breakout to grasp the next movement of the safe-haven asset price in short-term.
Resistance level: 1316.40, 1323.20
Support level: 1310.50, 1304.60