7 June 2018 Daily Analysis
Dollar squandered as economic data softens.
Greenback depreciates sharply against its other major peers on yesterday over-the-backdrop of softer regional economic data while Euro extend its gains following hawkish comments from central bank members. The dollar index tumbled down 0.10% while last seen around 93.55 during early Asian trading session. According to US Bureau of Labor Statistics, regional worker productivity rose slower than economist’s expectation for the first quarter, coming in with a reading of 0.4% versus consensus of 0.7%. The bearish reading has diminished some bullish sentiment towards a stronger labor market in the long-run following optimistic jobs report from last Friday. In addition, the US dollar was held back further after European Central Bank (ECB) policymakers signaled to tighten their monetary policy sooner than later on yesterday. ECB chief economist Peter Praet postulate that ECB will debate whether to scale back their bond purchases gradually during their meeting next week. In addition, Euro received further buyback following diminished political uncertainty in Italy. Pairing of EUR/USD extended gains by 0.08% to $1.1784 as of writing.
Looking into the commodities market, crude oil price pared its losses by 0.25% to $65.12 per barrel after tumbling down on yesterday due to bearish US stockpiles data. According to Energy Information Administration, US crude stocks swelled up by 2.07 million barrels last week, missing economist expectation to reduce by 2.00 million barrels. On the other hand, gold price rose by 0.04% to $1,297.17 a troy ounce due to weaker dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:15 CAD BoC Gov Poloz Speaks
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – Trade Balance (Apr) | 1.527B | 0.980B | – |
| 14:00 | EUR – German Factory Orders (MoM) (Apr) | -0.9% | 0.7% | – |
| 15:30 | GBP – Halifax House Price Index (MoM) (Apr) | -3.1% | 1.1% | – |
| 17:00 | EUR – GDP (QoQ) (Q1) | 0.4% | 0.4% | – |
| 20:30 | USD – Initial Jobless Claims | 221K | 223K | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3410. Both MA line which continues to expand upwards suggests the pair to continue its bullish bias, towards the direction of 1.3460.
Resistance level: 1.3460, 1.3530
Support level: 1.3410, 1.3360
EURUSD
EURUSD, H4: EURUSD extended gains after regaining some support near the threshold of 1.1650. MACD histogram which continues to illustrate bullish signal suggests the pair to extend its gains after breaking the resistance level at 1.1790.
Resistance level: 1.1790, 1.1865
Support level: 1.1740, 1.1650
USDJPY
USDJPY, H1: USDJPY remains traded within an ascending channel following recent retrace from the top level. MACD histogram which has formed a death cross signal suggests the pair to be traded lower in short-term in the event of a closure below the 20-MA line (red).
Resistance level: 110.55, 111.00
Support level: 110.00, 109.40
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within a tight range following prior retracement from the top level. Stochastic Oscillator which begin to form a retracement signal from the overbought region suggests the commodity price to be traded lower in short-term, towards the lower level of the range.
Resistance level: 65.70, 67.35
Support level: 64.10, 63.00
GOLD
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level of 1301.20. Diminishing upward momentum from the MACD histogram suggests the pair to extend its losses after closing below the 20-MA line (red).
Resistance level: 1297.00, 1301.20
Support level: 1290.00, 1282.10